Legal Supervision Lacking in US Real Estate Market Leads to Global Crisis.
The Subprime lending crisis started in the USA and spread worldwide, causing a secondary mortgage market crisis. The main reason was the cooling real estate market, making it hard for buyers to refinance. The root cause was the lack of legal oversight in the USA's real estate mortgage securitization. This paper analyzes China's real estate market issues based on the subprime crisis, suggesting four measures to prevent mortgage market risks in China.