POL114H5 Lecture Notes - Real Estate Bubble
Document Summary
The world is becoming a much smaller place and much more interconnected, and make it much more difficult for regions in the world to separate themselves from global affairs. Housing bubble in us prices increasing and banks giving loans, and americans having falling incomes. Only lasts as long as influx of money continues. In 2008 banks got in trouble, and loans were based on prices of houses. No one could buy the houses anymore cuz ppl could not get loans anymore, so ya, banks got fucked. Nobody knew who owned what any longer, and housing bubble burst. American banks are active throughout the world, so it spread to other parts of the world that brought a global recession. We are increasingly becoming aware of affairs all over the world. Globalization as a phenomenon has changed the global system and its lasting impact. The term globalization gained usage primarily after the collapse of the soviet union.
