Pour your Home Equity Down the Drain!

Check out this very literal depiction of what too many Americans have been doing over the past few years. They're "tapping" their home equity and pouring it right down the drain! What brilliant mortgage company thought to paint this on their window? This is a real window, snapped on Thanksgiving weekend, in downtown Sacramento.

Do you trust your dentist?

David Leonhardt of the New York Times wrote an interesting article in yesterday's paper: When Trust in an Expert Is Unwise. He reported on a study by economics grad student Henry Schneider. Schneider came to some disturbing findings about the trustworthiness of auto mechanics. He made some simple tweaks to his car, ones that if left unchecked could do major damage, and found that many of the mechanics either didn't catch the problems and/or prescribed costly repairs that were unnecessary. This is evidence that a healthy dose of skepticism is very good when faced with auto repairs. But what's most alarming, and this is addressed in the article, is when you're talking to a doctor or dentist instead of a mechanic. It's a classic case of the selling party having more information and more expertise than the buyer. That's why independent third party analysis (think Consumer Reports) is so important in a market economy. And today, with the rise of online vendor reviews (eBay, Amazon, Yelp) it appears there's hope that the playing field will be evened out. But even so, there will still be the problem of those peer-review sites being polluted by false positive reviews or false negative reviews (coming from an ex-husband with an axe to grind). Last year the economist declared the “Rise of the Consumer.” Maybe the internet is getting us closer to that ideal of leveling the playing field between the seller and the buyer. But the real key will be finding ways to prevent people from gaming the online review system.

A side note. I, for one, find it difficult to trust dentists. I was once told I needed a root canal. When I changed dentists for other reasons, my new dentist told me I needed a new filling. Now, I have trouble trusting experts (like dentists) who are also trying to sell me something.

Award-Winning Skystream 3.7 Backyard Wind Turbine Now Eligible for State of California's Renewable Energy Rebate

Award-Winning Skystream 3.7 Backyard Wind Turbine Now Eligible for State of California's Renewable Energy Rebate

The First Wind Power SIMBY - Mike Mercurio and his Skystream 3.7

Mike Mercurio, of Long Beach Township NJ, is the first SIMBY "start in my backyard" wind advocate. He wants to use the Skytream wind turbine to power his home, but his neighbors don't agree.

Cape Wind Comedy Daily

Here's the Daily Show's take on Cape Wind. I couldn't help but chuckle. As always, everyone's in favor of the environment until it's in their backyard. Except for Mike Mercurio!

Living Green, Within My Means

I've discovered a new frontier in simple ways to green my lifestyle. Craigslist. Why throw all your old stuff away everytime you move, and then run to Ikea to buy another round of disposable furniture? We recycle everything else, why not furniture? One man's trash is another man's treasure.

When it came time for me to move cities and apartments, ONCE AGAIN, in my adult life, I, as always, threw out many things that simply didn't fit into my new place. For whatever reason, the dimensions didn't quite fit, or I was simply tired of certain things.

After throwing away those things I once paid full price for, I couldn't bring myself to drive to Ikea yet again and buy a whole new set of affordable, disposable crap for my new place.

So I embarked on a Craigslist adventure to furnish my new place within my means, but also keeping the world more green. Here's how...

It's truly amazing how much two people can accumulate over just two years, living in a one bedroom apartment. We tossed away clothes, old stereo speakers, old towels, random old electronic devices, an old computer desk. And by tossed away, I mean we left the goodies in a box out on the curb with a "FREE" sign attached. People came by slowly. After 24 hours our computer desk and my old boots had been taken. An older man decided he could make good use of my husband's old, but gently worn, hiking boots. Someone even took my old economics textbook.

Even though I have no idea what fate all my old things met, it felt good knowing they didn't go to (at least they didn't go straight to) the dump.

And of course, there were some things we then needed for our new, smaller place. We needed a kitchen table. I couldn't bring myself to run to Ikea, like I had so many times before, to buy a table we'd likely only keep while in this particular apartment. The idea of buying more disposable furniture didn't appeal to me.

So where did I turn? But of couse, to Craigslist! I'll admit, it wasn't instant gratification. I couldn't walk into a store and take something home that day. It took a bit of patience. I kept an eye on furniture postings in my neighborhood for 5 days until I saw the perfect table. Solid wood, small and round to fit our space, 4 sturdy chairs, the perfect color finish. And well below our budget for a new table. I also needed an office chair and found it the same way.

We all talk about recycling our food packaging and old electronics, but Craigslist takes it to another level. One man's trash is another man's treasure.

Rather than run out and buy something disposable, why don't we all make better use of the things we have, and be smarter about using what's already out there. Rather than run out and buy the latest "eco-chic" consumables, why not use what's already been produced? This especially makes sense, for people like me, who move every two years and are always throwing things away and buying them anew.

A Not So Lonely Planet

I write this entry from Dali, China (Yunnan province). Nestled in China's beautiful southwest countryside, Dali is an historic "backpackers paradise" according to the Lonely Planet travel guide, every China backpackers bible. My first visit to Dali was 10 years ago, when I was an exchange student in Beijing. I traveled to Dali during my winter break from Beijing University. Ten years later, I'm back in the small town that is drastically different than I remembered. There are several reasons behind this change. Namely, they are 1) the new railroad and highway connecting Dali to the Yunnan's provincial capital, Kunming and 2) the increased Chinese standard of living that allows greater numbers of China's middle class to be tourists in their own country.

This change is truly dramatic. When I was here 10 years ago, the only way in was by cramped, dusty, overnight bus from Kunming. Dali was overtaken by foreign backpackers in search of a sunny, relaxing place to spend a few weeks eating banana pancakes and drinking local beer. This time, I arrived by luxurious, high-speed overnight sleeper train. The backpacker cafes and hostels are still here, but even more have sprung up. The streets are still filled with foreign backpackers, but also with foreign tour groups. From the US, Australia, France, and elsewhere. And most notably, the streets are predominantly filled with domestic Chinese tourists. They come by the bus load, snapping photos with their digital cameras, buying local Dali crafts, and eating in the cafes.

Dali is no longer the "off the beaten path" destination it once was. China is a Lonely Planet no longer. This is just one of many indications of China's rising middle class.

An Evening with the Undercover Economist

This past week in Seattle I went to a book tour event for the author of the Undercover Economist. It was sponsored by the Seattle Chamber of Commerce's Young Professional group. What a smart move of his publicist to make that venue the very first stop of this young author's book tour. It was a relatively benign crowd. No WTO protesters in the audience that night. I haven't read his book, so don't know what arguments he makes in the book for the 'free' market or against government intervention. However, he did seem to jump on the bandwagon of making economics sexy and mainstream, much like the authors of Freakonomics. And while his book might be much more nuanced than his lecture the other night, I walked away thinking he didn't take the time to make his case for 'markets' very compelling. He argued that 'in the long run, all boats rise with the tide.' However, didn't bother to address the reality that 'in the long run, we're all dead.' He spoke only of the merits of free trade and free markets, while speaking nothing of inequality, 'free' markets that are actually not as free as we might think-- as they are controlled by those with the most resources. Nor did he address the environment at all. For example, he said he was in favor of sweatshops if they provide opportunity for Chinese peasants. He cited the example of one young woman who moved to the coast to work in a sweatshop, saved money and then returned to her inland village to open a manicure shop. He said he's in favor of sweatshops when the alternative is poverty. What if, however, the sweatshop pollutes the local lake that villagers would have otherwise fished in, had the sweatshop not polluted that lake. What if the economic development that benefits all in theory in the long-long-long run, benefits a few rich men today at the expense of many villagers. What would the undercover economist have to say about market failures that benefit a few at the expense of many?

I'm sure his book is more nuanced. At least, I hope it is. But I wish he had taken his oral arguments a bit more seriously, and not just skim the surface just because he's speaking to a group of so-called 'young' professionals.