Thursday, September 25, 2008
Wednesday, September 24, 2008
"Banks are bridges between savers and investors. Some of these bridges have collapsed. But altogether too much attention is being placed on fixing the collapsed bridges. Instead we should be thinking about how to route more savings across the bridges that have not collapsed. Government lending may be one way of doing this but why lend to prop up the broken bridges? Instead, why not lend directly to the investors who are in need of funds? After all, if these investors exist and have valuable projects that's where the money is! Let the broken bridges collapse, taking the shoddy builders with them. Instead focus on the finding and rescuing the victims of any credit crunch, the investors who need funds."
In either case, David Leonhardt implores readers in NYT not get bogged down in distractions, such as changing bankruptcy laws and limiting executive pay and realize the crisis demands a "laser focus" to stabilize first credit markets.
Tuesday, September 9, 2008
The fundamentals of the "bedroom community" economy have collapsed. Banks have not figured out at what point they will hit the bottom of their financing crisis. The need for radically improved, sustainability-focused strategies has never been more compelling than in this time of looming home foreclosures, $4 a gallon gas, an economy in decline, and broad agreement that the earth's fragility is not longer just the cry of the fringe.
I'm not so sure. For one, we can expect development to still gravitate to wherever land and services can be had cheaply and that means relatively unregulated land policies. The TOD's of today are only possible because of public will (and subsidies). "Bedroom communities" are in absolutely no danger of disappearing. You just add a club house. In fact, they are the only development economically and demographically viable. They just will become 55 and over monocultural enclaves sprawling around every bankrupt little municipality that needs the tax base without having to provide schools. Such is life.