Shortly after my piece on Phantom Bonds, Blame Wall Street's Phantom Bonds For The Credit Crisis, posted here on NewGeography.com in November, a friend called from New York to ask if I’d seen the latest news. Bloomberg News reported on December 10 that “…The three-year note auction drew a yield of 1.245 percent, the lowest on record... The three-month bill rate [fell] to minus 0.01 percent yesterday.” The US Treasury is seeing interest rates on its notes that are “the lowest since it started auctioning them in 1929.”
My friend is an intelligent person, a lawyer who managed to accumulate more than $1 million working a 9-to-5 job in a not-for-profit firm and retire in her 50s. Some of her portfolio is in Treasury bonds, so she had a lot of questions. In the course of our conversation, it became clear that I wasn’t going to be able to explain all she needed to know on the phone, despite her background. I decided to write this short owner’s manual. read more »
In the discussions of the stimulus and infrastructure problem, little attention has yet been paid to addressing brain drain. Yet for many regions – particularly in the old industrial heartland – no issue could be more critical.
Perhaps the most important investment in regional human capital occurs at local schools. Enterprise looks to the secondary and post-secondary institutions within the area for labor. In this regard, it makes sense to fund better learning with local and state taxes as long as that talent remains within that geography. read more »
With his foreign policy team now in place, President-elect Barack Obama certainly will be urged to make his first forays into high profile places like Pakistan, Israel and Palestine, as well as to greet his devoted fan base in Europe.
But before heading off on the diplomatic grand tour, he might do well to turn his attention first to the country with which we have the closest political, economic and environmental ties: Canada. Although not as momentous or sexy a locale as Paris or Jerusalem, Ottawa could well hold the key to developing a bold new strategy for America in an increasingly incoherent and multi-polar world. read more »
You would think an economic development official in Michigan these days would be contemplating either early retirement or seppuku. Yet the feisty Ron Kitchens, who runs Southwest Michigan First out of Kalamazoo, sounds almost giddy with the future prospects for his region.
How can that be? Where most of America sees a dysfunctional state tied down by a dismal industry, Kitchens points to the growth of jobs in his region in a host of fields, from business services to engineering and medical manufacturing. Indeed, as most Michigan communities have lost jobs this decade, the Kalamazoo region, with roughly 300,000 residents, has posted modest but consistent gains. read more »
If many of the nation’s governors have their way, the next agenda item for the spendthrift federal government could be a bailout of state budgets. According to a report issued on December 10 by the Center on Budget and Policy Priorities, 37 states face mid-year 2009 budget deficits, totaling $31.7 billion. As would be expected from its size, California leads the pack at $8.4 billion. read more »
The continual Illinois corruption scandals have created not only ignominy to the Land of Lincoln, but have now placed a negative ranking from Standard and Poor on its credit. If Illinois vies with other states for the title of most corrupt, it has plenty of company when it comes to financial disaster.
Although building for years, the impending collapse of state and municipal finance has been hastened by the growing financial crisis. read more »
The current recession provides a new opportunity for Pittsburgh's elite to feel good about itself. With other boom economies from Phoenix to Miami on the skids – and other old Rust Belt cities like Detroit, Cleveland and Buffalo even more down on their luck – the slow-growth achievements of the Pittsburgh region may seem rather impressive.
Yet at the same time, the downturn also poses longer-term challenges for which the local leadership is likely to have no answers. read more »
In Pennsylvania, public and private funds mainly are directed into areas where people live and where people vote. As a result urban Pennsylvania has significant advantages over rural communities in securing public funds and private investment. read more »
Part Two. Yesterday, in Part One, Critser discussed scientific advances in understanding air pollution. Today, he addresses the social implications.
The new science of air pollution, with its emphasis on dose-response mechanisms, may remake the traditional advocacy realm of social and environmental justice. In the past, that world has been focused on class, race and ethnicity, classic markers of inequality and vulnerability. Today, the focus is more “exposure driven.” “Dosage… may be something people who have ignored environmental justice can get their heads around,” one researcher at last month’s Environmental Epidemiology conference in Pasadena noted. “It may get people’s attention on something that affects us all.” read more »
Part One of A Two-Part Series
Not long ago, Michael Woo, a former Los Angeles city councilman and current member of the Los Angeles City Planning Commission, took up a case pending approval by that body: a mixed housing-retail development near the intersection of Cahuenga Boulevard and Riverside Drive. Like many of the remaining buildable sites in the city, the property is right next to a roaring motorway; the windows of some apartments would look right out onto the 134 Freeway. To Angelinos, who have grown up in a car culture, it was hardly a remarkable proposal. But Woo, perhaps one of the brainier members of the city’s political elite—after losing a mayoral race to Richard Riordan in the early 1990s he became a professor of public policy at University of Southern California—had a problem with it, and he couldn’t quite let it go. read more »