So that's why the mellons cost Y5,000

naked capitalism: How to Look Generous on the Cheap

The real cause of the current housing mess

Government support encouraged too many people to see housing as a risk free investment. Why is there a view that to own is much better than to rent?

EconLog, Shiller is bold?, Arnold Kling: Library of Economics and Liberty

The Bear Case: Lawrence Summers - Wake up to the dangers of a deepening crisis

Summers writes that things are much worse than three months ago. Roubini also chimes in . The question is whether the market has discounted this new information yet.

FT.com / Columnists / Lawrence Summers - Wake up to the dangers of a deepening crisis

EinhornOnCredit

The problem is not subprime, but the underpricing of all credit risk.


EinhornOnCredit.pdf (application/pdf Object)

Does hard make for happiness.

Or why I study chinese.

EconLog, A Fertile Criticism of Happiness Research?, Bryan Caplan: Library of Economics and Liberty

Not yet a problem?

A good, but bullish summary of where we are. Securitization did not fail, it proved its worth during this crisis. Risk was diversified. Housing will stabilize.
We will see.

Economist's View: "Not (Yet) a 'Minsky Moment'"

TSE Head calls for Corporate Change

FT.com / Companies / Financial services - TSE head raps governance standards

A weak dollar does not equal higher inflation

A dollar for your thoughts | Free exchange | Economist.com

Enough said

blog.pmarca.com: Nixon White House tapes: the gift that keeps on giving

The Fed on: The Rise and Fall of Subprime Mortgages - Economic Letter, Nov. 2007 - FRB Dallas

A good history of the rise and fall of mortgages.

Also can add a comment on the size of the losses.

Some estimates of the size of the sub-prime damages appear to us to be double-counting the losses. They add loan defaults to CDO and MBS write-downs and financial institution write-offs. In our view, there’s only one economic loss among these – the foreclosure minus the recovery. The rest are timing decisions in which some are realizing their losses in zero-sum financial calculations, while others will realize gains later.

• On a broader scale, the realized mortgage losses (a foreclosure minus a recovery) are a subset of unrealized losses (over the last couple of years as real estate prices declined). Those followed largely-unrealized gains (the seven-year boom from 1998-2005). From the standpoint of the economic outlook, we think the still-large net real estate gains over the last decade, by adding to household net worth, act as a cushion against a recession.

From Malpass at Bear.


The Rise and Fall of Subprime Mortgages - Economic Letter, Nov. 2007 - FRB Dallas

Sources of Inequality in the US

Long-Run Changes in the U.S. Wage Structure: Narrowing, Widening, Polarizing

Notes from Beijing

I was just about to send James Fallows a note about his air quality report. I arrived in Beijing on Nov 5. Nasty.

James Fallows (November 05, 2007) - Maybe Nov 3 is out too?

What are meetings for?

Not always for the efficient exchange of information...

Marginal Revolution: George Bush knows how to keep a meeting short

Global Warming

Grasping Reality with Both Hands: Brad DeLong's Semi-Daily Journal

The case against war with Iran

Obvious but well stated.

Stratfor - Geopolitical Intelligence Report

How to cut the cost of Healthcare

Doctors and patients must end expensive treatments. That means an end to try "everything" approach that Americans love.


EconLog, Another One of My Health Care Debate Peeves, Arnold Kling: Library of Economics and Liberty