Brad DeLong, the real jobs summit:
“The White House is hosting a jobs summit this week. I, however, cannot but think that it is the wrong jobs summit—that it will be the wrong people talking about the wrong things.”
This article on the App Store in the New York Times doesn’t have a whole lot that’s new, but is thorough and well reported.
On why a housing bubble:
“…because of the terrorist attacks on 9/11, and the financial scandals of Enron and Worldcom, bond markets were scared out of their minds that they might be lending to the next Worldcom. Noah Millman has an excellent description of that situation on the ground related to the beginning of the wave of structured finance. Worldcom is early 2002; people are spooked about the next landmine, and housing always seemed like a safe bet for both consumers, and because of some financial innovations and excellent ratings, for investors.
To go deeper, I think it’s useful to distinguish between supply and demand here. Many financial institutions, because of all kinds of financial innovation, deregulation, ratings agency’s behavior and changes in the repo markets, wanted to give out more housing loans than before. That’s supply. Where did demand come from? Why did consumers buy so much real estate? The quick answer is that supply creates its own demand, or that demand stayed still while supply moved enough to cause what we’ve seen.”