U.S. and EU still looks very weak, the EU weaker, because the debt crisis broke out. According to traditional economic models, the recovery of their economy should be up by now. But if you look at Japan, we know that not the case. 80s of last century, Japan’s speculative real estate bubble burst, a full 20 year economic slump.

Very serious financial crisis, IMF (International Monetary Fund) data show that in 2009 the first time since World War II decline in global GDP. GDP growth rate in 2010 was 4.2%, 2.1% in developed countries, developing countries 6.4%. Some of the government to stimulate economic growth, rescue companies created.

Fortunately, after the governments of the crisis was unprecedented and a high degree of close international cooperation and coordination – the end of the recent G20 summit in Seoul, the official statement said.

The crisis exposed the world, the extreme vulnerability of the financial system: a local bubble, a series of financial institutions around the world will be pulled collapse. Assistance to government actions, but also provoked public outcry, people feel the government with taxpayer money to save the rich, it is not fair, we do not want to see this happen again.

G20 summit in Seoul, the leaders agreed even behind the Financial Stability Committee (Financial Stability Board) asked about the reduction has a significant impact on the system the moral hazard of financial institutions policy framework, it is not easy. 30’s of last century, the leaders not the case, they panic, attack each other.

Such as Lehman Brothers, the so-called “too-big-to-fail” financial institutions to bring the whole system of how to solve the moral hazard is a very important issue. Currently there is no uniform international mechanisms, national insolvency laws vary, fragmented, difficult to deal with the global crisis. In addition to such as Lehman Brothers, banks, hedge funds, credit rating agencies and other financial institutions have this problem. In 2007, AAA rated real estate securities triggered the crisis, the credit rating agencies play What’s wrong with that, three years later we are still in discussion.

Congress in July 2010 passed the “Wall Street Reform Road was Frank and consumer protection bill” (Dodd-Frank Wall Street Reform and Consumer Protection Act), to major financial institutions, moral hazard profound reform. The bill has been issued, but not yet implemented, the need for extensive research.

Financial Stability Committee, the United States Bill of DF, the European Commission are trying to establish systematic risk of a more comprehensive insolvency regime, corporate dissolution mechanism to ensure that any financial institution the disintegration of a crisis can be safe, and not undermine the entire financial system, and do not need to pay taxes of support. But this is merely an experiment. For example, according to the U.S. DF bill, if a financial institution crisis, the Federal Deposit Insurance Corporation to take over. However, the Federal Deposit Insurance Corporation and the ability to really have the courage to do it? Wait until the “nationalization” of the key moment comes, if the Federal Deposit Insurance Corporation panic, incompetence, how do?

2007-2009 crisis sweeping the globe, the major economies spared the shocking breadth of the affected side. However, the Chinese economy is very strong, but by slower growth after the crisis, there is no beating. China’s economy may also “double dip”, but a large elastic energy, not be subject to fundamental damage. Such as the Chinese stock market, rushed to the peak in 2007, 2008, and fell to the bottom, the typical bubble, but rebound quickly after the bubble burst, the speed is surprising. This is mainly the psychological effect, the Chinese people are confident, so a rebound soon.

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