Thursday, 16 February 2012

Read the San Francisco Assessor's Audit on Mortgage Compliance.

It is jaw-dropping.  Among other things, around 30 percent of the foreclosed loans sampled from San Francsico have a minimum of three clear compliance issues. 

One should not draw inferences about the rest of California from San Francisco alone--so it is time to replicate the study for some other counties. 

Wednesday, 15 February 2012

Did David Brooks think the social fabric was better when...

...we had Jim Crow?  When the military was segregated? When Chinese were denied citizenship?  When husbands could beat their wives?  Not so long ago, this was part of the social fabric.

Monday, 13 February 2012

Why do people confuse "transit" with rail?

Perhaps the most important transportation economist since World War II was John Kain.  Professor Kain liked transit very much, but be showed, over and over again, that urban buses were more efficient in virtually every context than urban rail: for the same amount of money, buses can take more passengers more places more conveniently than trains. 

When transit agencies build expensive rail systems, they inevitably cannibalize bus systems.  This has happened in Salt Lake City, in Portland, in Atlanta and in Dallas.  The goal of transit should be to move people as efficiently as possible.  The evidence is overwhelming that rubber tire transit beats fixed rail pretty much everywhere.  So why the nostalga for an obsolete technology?  I just don't understand.




 

Friday, 10 February 2012

My lexicographic voting preferences



I could no more vote for someone that opposed marriage equality than I could for someone who supported anti-miscegenation laws. And yes, for me that pretty much trumps everything else.

Wednesday, 8 February 2012

Lisa Schweitzer on Shouting People Down

It starts:


One problem with planning, particularly for planning in the academy, concerns its normative basis: the good city, the just city, etc. Recently, a commenter here said:
That describes what a university SHOULD be, but not what I have found most universities to actually be. Anyone that disagrees with the mainstream academic viewpoint is not engaged in discussion, but shouted down. Students aren’t encouraged to explore and come up with new ideas, but to validate the ideas of their professors. Seems like the “debate” (or lack thereof) is not longer intellectual, but political and ideological.

That comment meshes with my experience in the planning academy, but not my experience with social scientists. Social scientists have their own sets of problems and limitations, but planning’s normative basis means that once consensus forms on what is good, deviations from that will be condemned not as misguided or inaccurate, but as evil. I’m not naive enough to believe the social sciences aren’t subjective and subject to ideological influences. But a common theoretical basis, such as that held in economics (however flawed), allows even for deep divisions to run alongside a rigorous body of empirical work. That is, unless you’re in macro, where ideologies rule and big names bellow at each other like mammoths across the primordial swamp about how to interpret theoretical models that have a weak empirical basis.
Read the whole thing.

Wednesday, 1 February 2012

Two strong positives for the new Obama refinance plan

(1) It finally allows underwater borrowers to exercise an option that investors knew existed when they purchased mortgage backed securities--the prepayment option. Right now, the fact that borrowers are underwater allows investors to earn a windfall by collecting a premium on what is effectively a callable bond.

(2) It imposes a Pigou tax on large banks. When a small bank fails, the negative externality is small to non-existent. When a TBTF bank fails, the negative externality can be catastrophic.  Taxes on large banks help internalize the externality.



Rolf Pendall: Racial Segregation is Still a Reality

Rolf responds to Glaeser and Vigdor:

The Manhattan Institute for Policy Research’s website made a triumphal proclamation this week that we have reached “the end of the segregated century.” The New York Times dutifully spread the news, leading with the headline “Segregation Curtailed in U.S. Cities, Study Finds.” The story beneath the spin, however, shows that segregation isn’t just a phenomenon to look back on regretfully during African American History Month (which begins today). Segregation lives on in far too many American cities.

In 1970, two years had elapsed since Congress enacted the end of private-sector apartheid with the Fair Housing Act; only a few years before that, President Kennedy had ordered the desegregation of public housing. Why should we wonder that segregation levels have declined since then? Shouldn’t the real story be that in the nation’s second-largest metropolitan area, Chicago, over 70 percent of African Americans would have to move to a predominantly non-black neighborhood (or the same proportion of whites would have to move to mostly non-white areas) to achieve an even racial distribution? Chicago isn’t the only metropolitan area in this position: Detroit, Cleveland, and St. Louis also surpass 70 on this segregation index. New York, Baltimore, and Philadelphia—that is, a continuous band of urbanization stretching from just north of Washington, DC, to the middle of Connecticut with well over 25 million inhabitants—stand between 60 and 65. The heart of the northeast corridor still lives in a segregated century, as does the fringe of the Great Lakes. Even “less segregated” metropolitan areas still have levels of racial segregation far higher than the Fair Housing Act promised.
Rolf underscores an uncomfortable point--that Northern cities have more black-white segregation than Southern cities.  The largest city in my home state of Wisconsin, Milwaukee, is the most segregated large city in the country.