Housing Stops

I’ve heard and read several variations on this theme today, that new residential construction is down.

New residential construction dropped in June, another indication that the U.S. housing market is struggling.

But that’s a new kind of sentence fragment – you know, where they leave off the important part. The rest of the sentence should read: to admit to itself that the last thing the housing market needs is a bunch of new houses.

“The housing industry remains stuck in a rut, with both sales and construction activity moribund,” said Michael D. Larson, an interest rate analyst with Weiss Research. “Builders simply lack the confidence — or in some cases, the financing — to ramp up construction, especially in the wake of the home buyer tax credit’s expiration.”

The poor report for housing starts follows news Monday that builder confidence in the new home market sank to its lowest level in more than a year, according to an industry index. Home sales plunged 33% in May, the latest sales figures released, and many economists expect a difficult year for builders now that the federal tax credit for buyers has expired.

This is news? That’s what’s holding them/us back, the expiration of the homebuyers tax credit? Sorry, guess again.

As a result, builders have cut back on home construction. “Builders remain very cautious in light of the sluggish pace of the economic recovery and the hesitancy they are seeing among potential home buyers,” National Association of Home Builders Chairman Bob Jones said in a statement.

What’s more, builders who can work up the confidence to take on new projects are finding it increasingly difficult to get financing. “If you think it is hard to get a mortgage to buy a house, put yourself in the shoes of a developer trying to throw up a subdivision,” Larson said in an interview. “It is really tough to get that kind of financing.

Does anyone ever think to ask why would they want to throw up a subdivision? Because that’s just what they do is no longer operative, developers. Wake up. We don’t need a lot of new houses and condos right now or for the next 12 1/3 years (random). This is again, one of the definitions of insanity – doing the same things over and over but expecting different results. Put on some different shoes, developers. Those have worn holes all the way through to the top. It’s tough to get the financing because we don’t need any more (single family) houses in (far flung) places where we don’t already have too many of these. You can look it up.

Developers: keep your careers if you must but change your MO. Walkable, to work and for provisions, proximity to transit, high density. That kind of building comes back, someday. The other kind, not so much.

Fringe-Fi

So… even for an election season, the politics of the moment are coming unhinged; just read the last ten or twelve posts at TPM, a supposedly moderate newsy site, and you’ll see how covering the right is becoming a circus of crazy. Conventional thinking is gelling around the notions that

a) the Republican Party is the Tea Party

and b) whatever it’s called the GOP Confederate Party needs to disappear, and/or be replaced by something other than either one of those, for the good of the country.

But that’s… a bit of crazy in its own right, and we could definitely be being governed by majorities of those freaks (think endless investigations of trivial scandals and government shutdowns) after this fall. Nonetheless… Green. What do it mean? How about your crappy internet service? Don’t think its so crappy?

The Connectivity Scorecard is, as Stacey Higginbotham reports for GigaOM, a favorite measure of the telecom industry, since it paints the America in a particularly favorable light.

The Scorecard looks not just at broadband infrastructure, but also at how a country uses its broadband, and how much that helps its economy. So while the United States has less and slower broadband than many Asian and European countries, it was the top rated country on the Scorecard until this year.

But as this chart emphasizes, U.S. broadband is far less advanced than that of leading countries. Despite ranking the United States second, the report states: “While it has significantly more fiber and DOCSIS 3.07 deployment than most of Western Europe, US infrastructure is uneven, and the gap with respect to Asian economies and even Sweden and the Netherlands remains substantial.”

Is there a connection? Sorry. Expect more. Before it becomes a corporate logo. Damn.

Half of what you see

Are people really going to begin considering tearing down some (one… any…) elevated interstates in cities? God bless ’em. Because, you know, they’re everywhere.

At the risk of ruining it (the reach of this blog knows no limits), here’s part of a Frontline piece on Bhutan.

Tucked between India and China, the Buddhist kingdom is the size of Switzerland and has less than a million people. For centuries it has remained isolated in the Himalayan mountains. But now it has opened itself to what critics call “an electronic invasion” — cable TV.

Rinzy Dorji sees himself as part of modern Bhutan’s promising future. Others fear he’s part of its problem. As the co-owner of Sigma Cable Service, Rinzy has hooked up this secluded society to 45 cable television channels, featuring everything from the BBC to Baywatch, all for about $5 a month: the price of a bag of red chillies. Across the country, people eagerly await a visit from “the man in the TV van.”

Video at the link.

Helicopter Drop

We are all the financial crisis now.

But when you have bought so much debt and created so much money that rates are near zero, the public is saturated with liquidity; from that point on, they’re holding money simply as a store of value, which makes it no different from bonds — and hence a perfect substitute for bonds. And at that point further open-market operations do nothing — they just swap one zero-interest asset for another, with no effect on anything.

So why not forget about open-market operations, and just drop the stuff from helicopters? Well, remember that at this point cash and short-term bonds are equivalent. So a helicopter drop is just like a temporary lump-sum tax cut. And we would expect people to save much or most of such a tax cut — all of it, if you believe in full Ricardian equivalence.

Ricardian equivalence refers to the suggestion that it does not matter whether a government finances its spending with debt or a tax increase, the effect on total level of demand in an economy being the same. And it doesn’t seem that we believe this at all.

Definitely difficult for the casual observer to stay out front of the forward thinking on what to do about the meltdown, especially where unemployment is the lead canary staggering out of the mine – ostensibly the easiest thing to do something about – infrastructure!

Burying billions and hiring people to dig it up would be productive, to the extent that it put money in people’s pockets, money they would then spend. But what if instead we hired people to re-build bridges, and/or faltering water and sewer systems… much less super trains.

Fete de la Bastille

In honor of the ongoing, worldwide green (zzzzzz…!) revolution, here’s a recipe for my favorite French peasant food, may it forever be the fashion, Cassoulet.

Vive la revolution.

For related background, see these books by Claude Manceron. I’m sure there’s a thing or two in there that would be still instructive.

Mmmm… Complex… Issues

Why not use cartoons instead of charts and graphs to make your point? Use whatever you want.

Annie Leonard used to spout jargon. She reveled in the sort of geek-speak that glazes your eyeballs.

Externalized costs, paradigm shifts, the precautionary principle, extended producer responsibility.

That was before she discovered cartoons.

Today the 45-year-old Berkeley activist is America’s pitchperson for a new style of environmental message. Out with boring PowerPoints and turgid reports; in with witty videos that explain complex issues in digestible terms.

M’kay. All good. Instead of being a boring old scold… entertain and scintillate with the latest and the gravest.

In the past 2 1/2 years, more than 12 million people worldwide have viewed Leonard’s animated Web video, “The Story of Stuff,” a 20-minute expose of humanity’s wasteful ways. It has been translated into more than 15 languages and has spawned a book of the same name, published on recycled paper with soy ink.

Leonard recently launched “The Story of Bottled Water,” a video about how clever marketing turned a freely available commodity — tap water — into a source of profit and pollution, and “The Story of Cap and Trade,” her take on how carbon trading undermines efforts to curb global warming.

“The Story of Cosmetics,” about toxicity in personal care products, will go live July 21. Coming this fall: “The Story of Electronics,” on planned obsolescence and pollutants in computers and cellphones.

Uh huh. I see. Taking the backdoor route to Old Scoldsville, eh? Nice one. But I have a feeling these stories themselves won’t be nearly as insightful about waste nor cause as many people to pause and think about their own consumption as will the many ham-fisted attempts to paint her as a marxist or a communist by well-meaning libertarian ignorati. Talk about enlightening.

Attention to the Deficit Disorder

Whenever you hear anyone belabor, lament or just plain whine about how high taxes are and how we’ve got to, just got to, take care of the deficit or else all their sweet little baby prayers will never be answered, just go ahead and call their bluff. Because the simplest argument is always the best one.

“[Y]ou should never raise taxes in order to cut taxes,” Jon Kyl said on Fox News Sunday. “Surely Congress has the authority, and it would be right to — if we decide we want to cut taxes to spur the economy, not to have to raise taxes in order to offset those costs. You do need to offset the cost of increased spending, and that’s what Republicans object to. But you should never have to offset cost of a deliberate decision to reduce tax rates on Americans.”

What he’s admitting is that it’s okay to cut the estate tax, nevah (evah) mind the deficit, and to eliminate capital gains taxes and to treat shareholder dividends as anything but taxable income but, but any tax relief at the lower end of the economic pyramid must always be balanced with spending cuts. It’s crazy, incoherent, chauvinistic classism not at its best but at its most American, self-selving finest, a brand that wealthy people have been able to obscure with moral concerns about federal budget deficits for at least thirty fifty years. And now it greatly accepted as gospel, except that none of it is true.

Understand the laziness dodge, the immorality of budget deficits and the government keeping its hands of your money, because they are all of a piece. The gentle creatures care nothing about the supposed deficit and will balloon it with tax cuts as soon as they are proposed. It’s another euphemism, aided by the (linguistic) fact that keeping up with the green is complicated.

(Linguistic) facts are linguistic (facts)

Sorry, it’s late for a friday, unless it isn’t.

From Chomsky’s Revolution in Lingusitics by John Searle in the NYRB, 1972.

Throughout the history of the study of man there has been a fundamental opposition between those who believe that progress is to be made by a rigorous observation of man’s actual behavior and those who believe that such observations are interesting only in so far as they reveal to us hidden and possibly fairly mysterious underlying laws that only partially and in distorted form reveal themselves to us in behavior. Freud, for example, is in the latter class, most of American social science in the former.

Noam Chomsky is unashamedly with the searchers after hidden laws. Actual speech behavior, speech performance, for him is only the top of a large iceberg of linguistic competence distorted in its shape by many factors irrelevant to linguistics. Indeed he once remarked that the very expression “behavioral sciences” suggests a fundamental confusion between evidence and subject matter. Psychology, for example, he claims is the science of mind; to call psychology a behavioral science is like calling physics a science of meter readings. One uses human behavior as evidence for the laws of the operation of the mind, but to suppose that the laws must be laws of behavior is to suppose that the evidence must be the subject matter.

In this opposition between the methodology of confining research to observable facts and that of using the observable facts as clues to hidden and underlying laws, Chomsky’s revolution is doubly interesting: first, within the field of linguistics, it has precipitated a conflict which is an example of the wider conflict; and secondly, Chomsky has used his results about language to try to develop general anti-behaviorist and anti-empiricist conclusions about the nature of the human mind that go beyond the scope of linguistics.

His revolution followed fairly closely the general pattern described in Thomas Kuhn’s The Structure of Scientific Revolutions: the accepted model or “paradigm” of linguistics was confronted, largely by Chomsky’s work, with increasing numbers of nagging counterexamples and recalcitrant data which the paradigm could not deal with. Eventually the counter-examples led Chomsky to break the old model altogether and to create a completely new one. Prior to the publication of his Syntactic Structures in 1957, many, probably most, American linguists regarded the aim of their discipline as being the classification of the elements of human languages. Linguistics was to be a sort of verbal botany. As Hockett wrote in 1942, “Linguistics is a classificatory science.”

Suppose, for example, that such a linguist is giving a description of a language, whether an exotic language like Cherokee or a familiar one like English. He proceeds by first collecting his “data,” he gathers a large number of utterances of the language, which he records on his tape recorder or in a phonetic script. This “corpus” of the language constitutes his subject matter. He then classifies the elements of the corpus at their different linguistic levels: first he classifies the smallest significant functioning units of sound, the phonemes, then at the next level the phonemes unite into the minimally significant bearers of meaning, themorphemes (in English, for example, the word “cat” is a single morpheme made up of three phonemes; the word “uninteresting” is made up of three morphemes: “un,” “interest,” and “ing”), at the next higher level the morphemes join together to form words and word classes such as noun phrases and verb phrases, and at the highest level of all come sequences of word classes, the possible sentences andsentence types.

The aim of linguistic theory was to provide the linguist with a set of rigorous methods, a set of discovery procedures which he would use to extract from the “corpus” the phonemes, the morphemes, and so on. The study of the meanings of sentences or of the uses to which speakers of the language put the sentences had little place in this enterprise. Meanings, scientifically construed, were thought to be patterns of behavior determined by stimulus and response; they were properly speaking the subject matter of psychologists. Alternatively they might be some mysterious mental entities altogether outside the scope of a sober science or, worse yet, they might involve the speaker’s whole knowledge of the world around him and thus fall beyond the scope of a study restricted only to linguistic facts.

Mysterious mental entities… For a fun game at home, pick out your own favorite, random three words.

Brought To You By

Scienceblogs.com agrees to have a nutrition blog written by PepsiCo.

Much consternation over at the home of science bloggingScienceBlogs. The forum for the brilliant OracPharyngulaMolecule of the Day, and countless other insightful, funny and informative blogs has decided upon a bizarre new strategy in sourcing new posts. As of yesterday, the platform will host a new blog written by food giant PepsiCo, all about the company’s specialist subject of refreshing sugary drinks and their benefits for dental and dietary health.

Is nothing sacred? Of course it isn’t – nothing at all. We’re as far past that as the Gagosian Gallery on its worst day might imagine. What is a bad day for them? What is the first thing BP did when they learned about the Deepwater Horizon problem? What was their actual problem? The whole reality of human habitation, its need for sustenance and breathable air, not to mention sufficient amounts of intellectual clutter, means not the same thing for the Limited Liability Companies among us. Sure we exist on the same planet and sign all manner of agreements, in principle, on paper gleaned from that planet’s perennial woody plants. But that may be where the common dimensions begin and end. A tear in one man’s time-space continuum is but a sub-bullet point in another man’s standard operating procedure (SOP) handbook.

Pace William Faulkner, the sacred is not dead and buried, it’s not even sacred.

God Hates Texas

As a young Dallas Cowboys fan in the seventies, I thought maybe s/he was just indifferent. But now Governor Rick Perry has confirmed the worst.

Later in his response, Perry said he feared a “knee-jerk reaction” to the oil spill, and said the oil spill could be just another “act of God that cannot be prevented“:

“We don’t know what the event that has allowed for this massive oil to be released,” Perry said alongside several other governors on a panel Monday. “And until we know that, I hope we don’t see a knee-jerk reaction across this country that says we’re going to shut down drilling in the Gulf of Mexico, because the cost to this country will be staggering.” Perry questioned whether the spill was “just an act of God that occurred” and said that any “politically driven” decisions could put the U.S. in further economic peril. “From time to time there are going to be things that occur that are acts of God that cannot be prevented,” Perry said.

We’re still in the early-middle of the post-beginning period of trying not to understand what has happened as God corporations have assumed their rights as a supra-governmental entities. There are still many more contortions along the lines of Joe Barton to go (actually, we won’t even believe Newt’s next turn in nuanced Randianism) some of which won’t even make re-written history books. They’ve spent decades training us, after all, selecting the best people for the most important but also the most minor offices, and with all of that time and investment spent cultivating the reality of benevolent selfishism, we’re not going to just be able to turn on a dime – like a dynamically positioned drilling rig, for instance – and just blame them for something they actually did.

I mean, come on.