Money and Finance

Question 1

Money as a social institution

Answer 1

It is an everyday object that we don’t consider its true meaning. Periods of monetary and economic crisis draw attention to fragility of money as a social institution. Much of our reliance on and obsessions with money rely upon the persistence of social norms and expectations.

Question 2

Everyday experiences of Money

Answer 2

Rituals of conspicuous consumption and moneyed networks. It is a means of identifying class positions.

Question 3

Everyday experiences of Money

Answer 3

To identify a nation, to identify the transformations of political and economic space in Europe. Bridges on notes represent connection, interchange and communication, Pan-European aspirations.

Question 4

Everyday experiences of Money

Answer 4

Virtual finance and personal indentity

Question 5

The end of Geography

Answer 5

O’brain (1992) predicted that globalization of monetary and financial institutions would herald the end of geography. Easy to assume that because of globalization, geography of money and finance is becoming less important

Question 6

French et al 2009:289)

Answer 6

Money and finance does not just have a geography, it is inherently geographical, and money and finance have evolved as a technology for bridging space and time

Question 7

What is the global financial system

Answer 7

Not to be understood as if it were some kind of machine, with own operating rules, uncontrollable by people but rather as a social, cultural and political phenomenon. Global finance is socially geographically and historically embedded.

Question 8

the GFS 1. 1980s and 1990s a globalizating of money

Answer 8

the government and international institutions pursued neo-liberal ‘free market’ policies and encouraged deregulation of financial markets and liberalized folw of capital across national borders. 2. their was a rise of email and internet access with 24 hour trading

Question 9

The GFS: localised centres of finance

Answer 9

really based in N America, Euripe and some parts of Asia. therefore many places are excluded.

Question 10

Location

Answer 10

depends on type of financial institution and market. Specialized functions tend to agglomerate in large urban centres e.g. stock exchange.

Question 11

Monetary Networks

Answer 11

Series of connections,- materials:computers, bits of paper, bank branches, telephones. - practices: talking to a bank manager, spans humans, technologies and things. Not one global financial system rather Multitude of Monetary networks

Question 12

Monetary Networks and Agglomeration

Answer 12

International financial centres maintain dominance because their shear size is self-reinforcing.different time-zones and nature of industry promotes geographical concentrations. Agglomeration: finance, technology and labour.

Question 13

Financial and economic crises

Answer 13

where networks go into meltdown as panic over losing finance and stock

Question 14

Geographical expression

Answer 14

mortgages market, localized effects on financial centres and regional impacts of mergers and acquisitions. shifts in geography of financial centres.

Question 15

Aalbers 2009:40

Answer 15

The financial crisis is redrawing the world in lots of ways and at many levels. Financial globalisation’s impacts are logically speaking global, but that doesn’t mean the impacts are the same around the globe.

Question 16

Perceived causes

Answer 16

Frailties of human nature: irresponsible risk-taking by financiers. 2. Institution failures: financial markets and products too complicated to be regulated. 3. obsession with a false theory: markets are rational, logical and self-correcting. 4. cultural origins e.g.greek crisis 5. policy failure: too much regulation ,but on the wrong side.

Question 17

Housing and mortgages market

Answer 17

mortgages lending used to be localised and national on scale. now part of a global market because if the savings are available in one area, but loans are needed in another. solution is to connect local markets and spread risks making mortgages markets more efficient by connecting them with other financial markets preceived as a low-risk investment

Question 18

subprime Mortgages

Answer 18

A new geography of predatory lending and discrimination.NINJA mortages (no income, jobs of assets) 1. higher interest and fees than is required to cover the added risk of lending to borrowers with credit 2, abusive terms and conditions that trap borrowers and lead to increased indebtedness. 3.(intentionally) fail to take into account the borrower’s ability to repay the loan. 4. highest market shares among racially marginalized individuals and minority neighbourhoods.

Question 19

securitsation

Answer 19

the process of creating new financial instruments by combining different types of assets and marketing them to investors. mortgage lender selling mortgages portfolios on the secondary markets to investors. which is how local and national markets went global. subprime mortgages viewed as a good investment

Question 20

credit crunch causes

Answer 20

home repossessing, impacting neighbourhoods and bank default their loans. financial institutions stop lending to each other.

Question 21

Mergers and Acquisitions

Answer 21

international centres took initial brunt of crisis. ultimately may lead to growing concentration and centralization of financial service activities within centres such as London HBOS.

Question 22

New Financial centres

Answer 22

a shift in the geography of finance. credit crunch dint not lead to the fall of wall street. arguable crisis did accelerate trends towards a shift in financial centres; centres of increasing importance are to be found outside N. America and Europe. Rise of emerging economies, two of them backed by billion-people. shifting global balance, predicted that financial centres in asia will become more prominent.

Question 23

conclusion

Answer 23

money has geographical, economic,cultural, social and political significance.GFS is geographically embedded comprising of networks that operate at different speeds and over different distances. finance and money, as well as the current crisis are redrawing the world in lots of ways and at many levels with unequal impacts on people and institutions.