Q.3Financialization is a complex process that views global finance as the dominant force that determines all economic and political directions. In order to understand this concept and the process of how financialization works, this essay will assess how the collapse of the real estate market led to the financial crisis in 2008. According to Economic Geography, a contemporary introduction, financialization "is the moment when all kinds Things are transformed into financial instruments intended for exchange between individuals and companies on international capital markets. Through financialization, real estate assets such as housing are financialized into structured investment vehicles such as mortgages – backed securities that can be easily traded among global investors through various financial institutions” (Coe, Kelly and Yeung, 2013). Trading mortgages or stocks globally has proven to be a financial disaster for many involved. Ultimately, the collateralized debt market collapsed, bringing with it the entire global financial market. In order to understand the concept of financialization and the real estate market on a global and local level, one must know that there is a global pool of money which is simply the global savings bank. In 2000, the pool was worth $36 trillion and has since doubled in size (Blumberg 2008). Its most recent profit increase is the result of money being made in developing countries and cities like India, Abu Dhabi and China. This doubled the cash available for investments, but left fewer solid investments to be made. The solution was residential mortgages and the American real estate market. Investment managers believed that low-risk, high-return investment in the real estate market was a good, stable idea. The stock market crash was caused by the stock market crash (Coe, Kelly, & Yeung, 2013). The housing market crash was a response to a string of companies and people who believed that the old banking laws were no longer important. Banks were no longer required to hold their mortgages for 30 years, giving them the ability to resell them to other companies, without worrying about mortgage lenders. Renowned geographer David Harvey has warned us about this problem, arguing 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, leading capitalism into an era of equally unprecedented dangers” (Coe, Kelly and Yeung)., 2013)