8.15

With “2020 hindsight,” the 2000s housing cycle is not a boom-bust but rather a boom- bust- rebound at both the national level and across cities. We argue this pattern reflects a larger role for fundamentally-rooted explanations than previously thought. We construct a city-level long-run fundamental using a spatial equilibrium regression framework in which house prices are determined by local income, amenities, and supply. The fundamental predicts not only 1997-2019 price and rent growth but also the amplitude of the boom-bust-rebound and foreclosures. This evidence motivates our neo-Kindlebergerian model, in which an improvement in fundamentals triggers a boom-bust-rebound. Agents learn about the fundamentals by observing “dividends” but become over-optimistic due to diagnostic expectations. A bust ensues when over-optimistic beliefs start to correct, exacerbated by a price-foreclosure spiral that drives prices below their long-run level. The rebound follows as prices converge to a path commensurate with higher fundamental growth. The estimated model explains the boom-bust-rebound with a single
fundamental shock and accounts quantitatively and foreclosures.

How Software Is Eating the Car

Chinese state media floats idea of creating a new highly isolated ‘Covid city’ to handle all inbound foreign flights to guard against Covid-19

As the 11th Circuit Court of Appeals recently observed, “it appears that prosecutors worked hand-in-hand with Epstein’s lawyers – or at the very least acceded to their requests – to keep the NPA’s existence and terms hidden from victims.” I lay out this evidence – of prosecutors and federal officials fast-tracking the Epstein NPA, of reaching the NPA before victims were interviewed, of high level DOJ participation in the Epstein deal – because there’s one important question that remains unanswered: Why did the federal government go to these lengths to protect Epstein and his co-conspirators?

Smartphone vendors are struggling to differentiate their products. Apple does this with its hardware/software combination, but none of the other vendors control the Operating System they use. Instead, they are dependent on Google who is seemingly ambivalent about Android. This leaves the AP as one of the few ways these other vendors can differentiate. This point has been hammered home lately as Apple seems to have picked up much (maybe most) of the share opened up by Huawei’s exit. At the same time, pricing for Android phones has come under pressure, see above about the rapid proliferation of 5G phones.

The most recent version has been fancified and crippled. First of all, when you open the app, it doesn’t take you to where you were last reading. It insists on starting with “news of the day” (there are lots of other sites for that stuff) and you have to press “week” to get back into the actual publication. When you do that, even though it knows which articles you’ve read (marking them with a check-mark in the table of contents) it maddeningly doesn’t take you to where you were last. So you have to hunt through the table of contents to get yourself restarted.

Ancestry.com Just Gave Itself the Rights to Your Beloved Family Photos

From Ancient Egypt to the Persian Empire, an ingenious method of catching the breeze kept people cool for millennia. In the search for emissions-free cooling, the “wind catcher” could once again come to our aid.

People are fleeing California for Texas and Idaho; Illinois, New York, and New Jersey are the three states with the most outbound moves.

We rented a California vacation home and got spied on by a surveillance camera

Hacker Says He Found a ‘Tractorload of Vulnerabilities’ at John Deere

In early 2020, the world missed its chance to stop Covid-19. Insight exposes how Beijing’s ten-year takeover of the global health watchdog sowed the seeds of disaster.