Subprime Cities

Manuel B. Aalbers is Associate Professor in the Department of Geography at the University of Leuven, Belgium. He is the author of Place, Exclusion and Mortgage Markets (2011) and associate editor of the Encyclopedia of Urban Studies (2010).

List of Figures vii List of Tables viii

Notes on Contributors ix

Foreword: The Urban Roots of the Financial Crisis xiii
David Harvey

Series Editors’ Preface xx

Acknowledgments xxi

Part I Introduction 1

Subprime Cities and the Twin Crises 3
Manuel B. Aalbers

Part II The Political Economy of the Mortgage Market 23

1 Creating Liquidity Out of Spatial Fixity: The Secondary Circuit of Capital and the Restructuring of the US Housing Finance System 25
Kevin Fox Gotham

2 Finance and the State in the Housing Bubble 53
Herman Schwartz

3 Expanding the Terrain for Global Capital: When Local Housing Becomes an Electronic Instrument 74
Saskia Sassen

4 Building New Markets: Transferring Securitization, Bond-Rating, and a Crisis from the US to the UK 97
Thomas Wainwright

5 European Mortgage Markets Before and After the Financial Crisis 120
Manuel B. Aalbers

6 The Reinvention of Banking and the Subprime Crisis: On the Origins of Subprime Loans, and How Economists Missed the Crisis 151
Gary A. Dymski

Part III Cities, Race, and the Subprime Crisis 185

7 Redlining Revisited: Mortgage Lending Patterns in Sacramento 1930–2004 187
Jesus Hernandez

8 The New Economy and the City: Foreclosures in Essex County New Jersey 219
Kathe Newman

9 Race, Class, and Rent in America’s Subprime Cities 242
Elvin Wyly, Markus Moos, and Daniel J. Hammel

Part IV Conclusion 291

10 Subprime Crisis and Urban Problematic 293
Gary A. Dymski

Glossary 315

Index 324