Study on the Transmission Mechanism of American Subprime Mortgage Crisis

The increasing cases of breach of contract in subprime mortgage in 2007 led to the subprime mortgage crisis in the United States.As the situation is getting worse,the subprime mortgage crisis has evolved into a global financial crisis and the unrest of financial market has trapped the key financial institutions deeply in the scope of world,causing them heavy losses.At present,the financial crisis has affected the real economy,causing the main economies in the world fall into recession.The paper makes a description of the transmission process from subprime mortgage crisis to financial crisis and finally to economic crisis of real economy,probes into some pivotal issues that initiated the emergence and spreading of the crisis,and demonstrates the lessons to be drawn by Chinese financial institutions.