Have you noticed how car rental companies assume that a rental car customer will always prefer the larger vehicle? For one thing, they cost more. For another, if you reserve a compact car, and they don't have one available, they'll give you larger vehicle, even a large SUV. Never mind that they're harder to drive and burn more gas. I don't blame the rental companies; I think this reflects the preferences of their customer base. Our wasteful ways are subtle and pervasive.

¶ 1417 Posted at 01.05 PM ⇒ No Comments ( oil | economics )

Is it possible for the broader economy to be more stable while individuals are less stable? It seems counter-intuitive, but it makes sense. Lifetime employment is long dead, and it seems like the social contract of the earlier post-WWII era has been sundered forever 1. And yet, the broader economy is more stable than ever, even with the current dislocations. Economic cycles have been dampened, inflation seemingly tamed. Perhaps it is like how the San Andreas Fault creeps along instead of letting the pressure build up, and then violently releasing it in a massive earthquake. The economy creeps along, lubricated and stabilized by the fortunes and failures of millions of individual economies. Perhaps that will keep the mortgage collapse from becoming an economic collapse. I'm no economist.

¶ 1583 Posted at 07.53 AM ⇒ No Comments ( money | deep thoughts | economics )

I have been of the opinion for some time that the effects of the housing bust are going to be worse than have been generally acknowledged. I've seen a steady increase in the doom and gloom from the media, government, and economic analysts as time passes and the reality sinks in. Here's an example.

¶ 1587 Posted at 08.00 AM ⇒ No Comments ( economics )

The distribution of Federal Reserve Districts is clearly indicative of the era in which it was created. At first glance, it seems obvious that the 12th District needs to be split, while the 5 Northeastern Districts could be consolidated into 2 or 3. I wish there was a USA Mapper that did for the US what does for the world. That would make it clearer how they should be redrawn.

¶ 1606 Posted at 05.39 PM ⇒ No Comments ( observations | economics )