Key points are not available for this paper at this time.
Click to increase image sizeClick to decrease image size Notes The author would like to thank Karel Williams for his helpful comments on earlier drafts, Adriana Nilsson for inspiration and the anonymous referees for their pertinent advice on revisions for this article. Of course, the usual disclaimers apply. Two very different accounts of the role finance played in the recovery of US economy in 1990s, one from French Regulation School scholars: Michel Aglietta Robert Boyer, The Future of Economic Growth: As New Becomes Old (Edward Elgar, 2004), and a more mainstream account by Joseph Stiglitz, The Roaring Nineties (Penguin, 2004). Ewald Engelen, 'The Case for Financialization', Competition Johnna Montgomerie, 'Bridging the Critical Divide: Global Finance, Financialisation and Contemporary Capitalism', Contemporary Politics, Vol. 14, No. 3 (2008), p. 233. Ismail Erturk, Julie Froud, Adam Leaver, Sukhdev Johal Greta Krippner, 'Financialization and the American Economy', Socio-Economic Review, Vol. 3, No. 2 (2005), pp. 173–208. Robert Boyer, 'Is a Finance-led Growth Regime a Viable Alternative to Fordism? A Preliminary Analysis', Economy and Society, Vol. 29, No. 1 (2000), pp. 111–45. Robert Aitken, '"A Direct Personal Stake": Cultural Economy, Mass Investment and the New York Stock Exchange', Review of International Political Economy, Vol. 12, No. 2 (2005), pp. 334–63; D. Marron, '"Lending by Numbers": Credit Scoring and the Constitution of Risk within American Consumer Credit', Economy and Society, Vol. 36, No. 1 (2007), pp. 103–33; Michael Pryke Paul Langley, 'Uncertain Investor Subjects of Anglo-American Financialization', Cultural Critique, Vol. 65 (Winter 2007), pp. 67–91. See Introduction in John M. Hobson Julie Froud, Sukhdev Johal Krippner, 'Financialization and the American Economy'. James Crotty, 'If Financial Market Competition is Intense, Why are Financial Firm Profits so High? Reflections on the Current 'Golden Age' of Finance', Competition Michael R. Dean, Chris Mrazek, Richard C. Drason Jon D. van Gorp Michael Liebowitz, 'Student Loan Securitisation Is Planned by Society Corp.', The Investment Dealers' Digest, Vol. 58, No. 51 (1992), pp. 34–9. Basel II has evolved with very detailed rules for capital on various types of asset-backed finance. For the first time, regulators have considered privatising parts of their supervisory responsibilities. The assessment of the credit quality of certain bank portfolios, including securitised deals and, thus, the amount of regulatory capital, will under Basel II be defined by third parties. In drafting revisions to the accord, central bankers chose to enlist companies, such as Moody's Investors Service, into their service as 'private regulators'. Even rating agencies disagree with this approach, suggesting that the use of third-party credit ratings may actually lead to increased regulatory arbitrage and potential ratings shopping among frequent securitisers eager to obtain the lowest amount of reserves. See D. Rausa Maurice, 'Basel I and the Law of Unintended Consequences', Bank Accounting and Finance, Vol. 17, No. 3 (2004), p. 26. Linda Punch, 'The Legacy of Card Bonds', Credit Card Management, May (1998), pp. 36–9. Ronald J. Faber M. Wallendorf Dawn Burton, Credit and Consumer Society (Routledge, 2008), Robert D. Manning, Credit Card Nation: The Consequences of America's Addiction to Credit (Basic Books, 2000). See Faber Wallendorf Thomas, 'A Preliminary Look at Gains'. Zack Martin, 'Crossing Channels with Reward Programs', Credit Card Management, Vol. 17, No. 4 (2004), pp. 16–7. Lloyd Klein, It's in the Cards: Consumer Credit and the American Experience (Praeger, 1999), p. 89. Steve Worthington Greenspan, 'The Mortgage Market and Consumer Debt'. Melissa Davey, 'Savings, Wealth and Consumption', Bank of England Quarterly Bulletin, Spring, 2004; Muhammed Mustafa James Banks, Richard Blundell Luigi Guiso, Michael Haliassos Robert Brenner, The Boom and the Bubble: The US in the World Economy (Verso, 2002). Boyer, 'The Political in the Era of Globalization and Finance'; Aglietta Andrew Leyshon, Dawn Burton, David Knights, Catrina Aleroff Andrew Leyshon Johnna Montgomerie, Spectre of the Subprime Borrower – Beyond a Credit Score Perspective, CRESC Working Paper No. 58, The University of Manchester, 2008. See also Dumenil Julie Froud, Sukhdev Johal, Colin Haslam Karel Williams, 'Trajectories of Inequality', Review of International Political Economy, Vol. 8, No. 1 (2001), pp. 1–12. Shaun French, Andrew Leyshon Burton, Credit and Consumer Society, chs 3 Leyshon et al., 'Ecologies of Retail Financial Services'. Survey of Consumer Finances, HDEBT: those families reporting outstanding consumer loans Survey of Consumer Finances, monthly debt repayment (TPAY). Manning, Credit Card Nation; Ritzer, Expressing America. James Medoff Schor, The Overspent American. Liz McFall, 'Advertising, Persuasion and the Culture/Economy Dualism', in Paul du Gay Liz McFall, 'What about the Old Cultural Intermediaries? An Historical Review of Advertising Producers', Cultural Studies, Vol. 16, No. 4 (2002), pp. 532–52. Aitken, '"A direct personal stake"'; Langley, 'Financialization and Consumer Credit Boom'; Randy Martin, Financialization of Daily Life (Temple University Press, 2002). Froud et al., 'New Actors in a Financialised Economy'; Nigel Thrift, Knowing Capitalism (Sage, 2000). Lendol Calder, Financing the American Dream: A Cultural History of Consumer Credit (Princeton University Press, 1999), introduction and ch. 1. Klein, It's in the Cards. Martha L. Olney, Buy Now, Pay Later: Advertising, Credit, and Consumer Durables in the 1920s (University of North Carolina Press, 1991). Ritzer, Expressing America, p. 31. Manning, Credit Card Nation, p. 17. John Kenneth Galbraith, 'The Bill Collector Cometh', in The Affluent Society (Andre Deutsch, 1984), ch. 13. Hugh Barty-King, The Worst Poverty: A History of Debt and Debtors (Alan Sutton, 1991); Scott B. MacDonald Medoff Ritzer, Expressing America; Schor, The Overspent American. Medoff James G. Carrier Leyshon et al., 'Ecologies of Retail Financial Services; Leyshon Johnna Montgomerie, Spectre of the Subprime Borrower – Beyond a Credit Score Perspective', CRESC Working Paper No. 58, The University of Manchester, 2008.
Johnna Montgomerie (Sun,) studied this question.