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Financial transformation and the metropolis: booms, busts, and banking in Los Angeles


  • G A Dymski
  • J M Veitch


In this paper the implications of the two eras of financial transformation in the 20th century -- that of the 1930s and that of the 1980s and 1990s -- for urban growth and inequality in Southern California are examined. It is argued that financial structures have profound effects on the pace and distributional consequences of urban growth, in large part because urban development is characterized by widespread spatial spillover effects. The contemporary era of financial transformation has widened gaps between urban communities and banking customer markets. Banking markets that were once segmented by regulation are now segmented by market dynamics. In consequence, a financial system which once facilitated wealth building for households and communities now deepens social inequality and spatial separation. In this paper the historical and contemporary experience of Los Angeles is used to both develop and illustrate the arguments made.

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  • G A Dymski & J M Veitch, 1996. "Financial transformation and the metropolis: booms, busts, and banking in Los Angeles," Environment and Planning A, Pion Ltd, London, vol. 28(7), pages 1233-1260, July.
  • Handle: RePEc:pio:envira:v:28:y:1996:i:7:p:1233-1260

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    Cited by:

    1. Zhao, Yuying, 2016. "Regional Differences of Rural Financial Exclusion ——in Gansu and Jiangsu Province," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230134, Southern Agricultural Economics Association.
    2. Thomas Wainwright, 2009. "Laying the Foundations for a Crisis: Mapping the Historico-Geographical Construction of Residential Mortgage Backed Securitization in the UK," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 372-388, June.
    3. Gary A. Dymski, 2004. "Poverty and Social Discrimination: A Spatial Keynesian Approach," Working Papers 002, Universidade Federal do Paraná, Department of Economics.
    4. Gary Dymski, 2009. "Financing Community Development in the US: A Comparison of “War on Poverty” and 1990s-Era Policy Approaches," The Review of Black Political Economy, Springer;National Economic Association, vol. 36(3), pages 245-273, December.
    5. Gary A. Dymski, 2009. "Afterword: Mortgage Markets and the Urban Problematic in the Global Transition," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(2), pages 427-442, June.
    6. Gary Dymski, 1996. "Business strategy and access to capital in inner-city revitalization," The Review of Black Political Economy, Springer;National Economic Association, vol. 24(2), pages 51-65, December.
    7. Gary A. Dymski & Jesus Hernandez & Lisa Mohanty, 2011. "Race, Power, and the Subprime/Foreclosure Crisis: A Mesoanalysis," Economics Working Paper Archive wp_669, Levy Economics Institute.
    8. Gary Dymski & Jesus Hernandez & Lisa Mohanty, 2013. "Race, Gender, Power, and the US Subprime Mortgage and Foreclosure Crisis: A Meso Analysis," Feminist Economics, Taylor & Francis Journals, vol. 19(3), pages 124-151, July.
    9. Lisa Mohanty & Gary Dymski, 1999. "Credit and Banking Structure: Asian and African-American Experience in Los Angeles," American Economic Review, American Economic Association, vol. 89(2), pages 362-366, May.

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