US Subprime Storm causes The Impact of Taiwan’s Economy

• Main Authors: CHIN-KUANG WU, 巫慶桄
• Other Authors: Kuang-Hsien Wang
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/hdzc7e

碩士 === 銘傳大學 === 經濟學系碩士在職專班 === 97 === The financial crisis for this time was originally involved in a single area and single product. However, with butterfly effect, it becomes a hurricane of financial markets that widely influences all over the world. Because of globalization, all countries have been suffering such severe attacks. Their central banks and financial institutions mostly invested in structured products of subprime mortgage, like Freddie Mac & Fannie Mae, total amount of the investment up to billions US dollars. The heavy impact is leading our global economy downwards gradually. I suppose that everyone should already know the reasons of forming subprime crisis, mainly from “Three plus One”. “Three” means ‘the decrease of Fed Fund rate’, ‘the downturn of housing price’, as well as ‘too little limit for borrowing money from banks’. “One” means that investment banks packaged home mortgage into high yield investment tools and new financial products being sold to worldwide. This article primarily discusses the reasons of Subprime storm and how much impact it will affect Taiwan’s economy.