{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lection notes - Lecture10/510/7 10:35:00 10/5restinnotebook...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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 
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern