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Unformatted text preview: Lecture 10/5-10/7 05/10/2010 10:35:00 10/5- rest in notebook ← Geographies of the Great Recession: • Rising NIDL, hollowing out of middle class, end of ‘virtuous circle’ • Deregulation of financial and credit markets • Rising credit debt among middle class • Sub-prime mortgages • Excess finance capital from dotcom bubble burst looking for investment • Globalization of credit markets for mortgages, seen as low risk • Housing bubble burst- brought on recession ← Geographies of Great Recession • Accelerated deline of regions that were loising during post—fordism: o ‘Rust-Belt’, and especially Michigan (Detriot as “ghost town”?) o State of Working Wisconsin report o Sept 2010: highest number of home foreclosures in WI • But also areas in the Sun Belt, especially areas whose boom was base on housing bubble o Florida, Nevada, California, Arizona ← Geographies of the Global Recession • The story of Narvik, Norway, the city council invested in residential mortgage backed securities from Citibank. o Investment need for new school, nursing home, child-care center o City lost everything, has but budget, closed schools etc. o This is a typical story of globalization and the us housing crisis • Economic decline as in: o Many EU countries from same reasons as US Greece, debt, nearly bankrupt o Russia o Japan o Oil exporting countries: as core economies decline, demand for oil also decreases Offset somewhat by continued relatively high demand in china • Economic Winner? o Richard Florida: financial-center megacities plus smaller centers w/ tech/knowledge-based economies (its good to be the core) o Emerging economies w/o kinds of credit/debt problems in core, especially china China keeps yuan low on world market to protect Chinese producers, exporters Buying rival currencies like $, yen, euro keep them high ← ← 10/7 ← Geographies of the Global Recession GDP is neg = recession GDP is pos = recession over Economic Winners? • Richard Florida: o ‘Them as has gits!’ or: it’s good to the core! o Financial-center megacities o Smaller centers with tech/knowledge-based economies • Emerging economies without the kinds of credit/debt problems in core, especially China o China keeping yuan low on world market to protect Chinese producers, exporters o China buying rival currencies like $, yen, euro, keep them high so all continue to buy Chinese, stay competitive on world market o Latest announcement that China will buy Greek bonds to help out, buying into euro market to keep euro high so Chinese products can continue to flow out of China and money can keeping flowing in.continue to flow out of China and money can keeping flowing in....
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This note was uploaded on 02/17/2012 for the course GEO 101 taught by Professor Dempsey during the Fall '10 term at University of Wisconsin.
- Fall '10