Q.3 Financialization is a complex process that labels global finance as the dominant force that guides all economic and political orientations. To understand this concept and the working process of financialization, this essay will evaluate and evaluate how the collapse of the real estate market led to the financial crisis in 2008. According to a contemporary introduction of Economic Geography, financialization “is when all kinds of le things are transformed into financial instruments for exchanges between individuals and companies on international capital markets. Through financialization, fixed properties such as homes are financialized into structured investment vehicles such as mortgages, securities that can be easily traded among global investors through a variety of financial institutions” (Coe, Kelly, & Yeung, 2013). Trading mortgages or stocks globally has proven to be a financial disaster for many of those involved. Ultimately, the collateralized debt bond market collapsed, dragging down the entire global financial market. To understand the concept of financialization and real estate markets globally and locally, you need to know that there is a global pool of money which is simply the world savings bank. In 2000 the pool was $36 trillion and has since doubled (Blumberg 2008). Its most recent profit increase was the result of gains in developing countries and cities such as India, Abu Dhabi and China. This doubled the liquidity available for investments, but left fewer solid investments to be taken. The solution was residential mortgages and the US real estate market. Investment managers thought that low-risk, high-return investment in the real estate market was a good and stable idea. The glorious…middle of paper…global…tized distribution is what caused the market crash (Coe, Kelly, & Yeung, 2013). people who believed that the old banking laws no longer mattered. Banks were no longer required to hold mortgages for 30 years, which gave them the ability to sell them off to other companies without worrying about the mortgage holders. David Harvey, a well-known geographer, warned us about this problem, stating that “labor markets and consumption function more as the result of the search for financial solutions to the crisis tendencies of capitalism, rather than the other way around. This would imply that the financial system has achieved a degree of autonomy from real production unprecedented in the history of capitalism, bringing capitalism into an era of equally unprecedented dangers” (Coe, Kelly and Yeung, 2013)