GEOG 216 Chapter Notes -Securitization, Negative Equity, Arbitrage
5 Dec 2012
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Document Summary
Local geographies have been inextricably linked to and constitutive of global processes. Local sub-prime mortgage lending ended up as securities traded on global bond markets undermined securities when they collapsed. The recent financial crisis is an example of glocalisation": making the case for a geographical perspective. Richard o"brien: globalization, money is hyper-fungible and hyper mobile, geography is irrelevant. But : countries differ in banking structures, regulatory regimes and arrangements, financial markets are controlled from specific places. Globalization has made monetary-space both multi-scalar and more complex: monetary-space is a space of transactions and a space of places, delocalized local financial circuits, localized the global. Monetary-space has become glocalised: the local and the global have become inextricably interwoven: the new globalized model of local mortgage lending. Factors to explain the housing bubble: falling real mortgage rates, demographic trends, income growth, the treatment of housing as an investment and speculative asset, country-specific factors.
