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Live in a San Francisco Ikea bunk-bed in a mass hacker dormitory for a mere $1k/mo


Here's a Craigslist ad for a "hub for entrepreneurs" where you can be barracked in one of dozens of bunk-beds ranked in rows for a mere $999/month. But you also get access to plenty of whiteboards and brainstorm areas, and will no longer have to endure the misery of "hop[ping] from coffee shop to coffee shop" as you seek to launch your tech business.

When I moved to San Francisco in the late nineties, I lived in half an illegal sublet for about $2K/month, and that was a deal by the standards of the day. But I had it better than the guy paying $800/month for the Sears shed in the back-yard -- I got a toilet!

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Should you short the London property bubble?


Economist Tim Harford answers my question: How would you short the London property bubble? in a column that also asks the important question: should you?

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Bubblenomics: how the Beanie Babies speculators got it wrong


Buzzfeed's Hunter Schwarz revisits 1998's "Scholastic Beanie Baby Handbook," which predicted values of Beanie Babies in 2008, and compares them to the current-day eBay clearing price for these same speculative items. For example, the Stripes the Dark Tiger doll, which retailed for $5 and traded for $250 in 1998 was predicted to rise to $1,000. Today it can be had on eBay for $9.95. And the $4,000-$5,000 estimated 2008 value for the Violet Teddy was also way off, though Violet is today a $700 item ($700 was also what it traded for in 1998).

How Much Beanie Babies Were Predicted To Be Worth Vs. How Much They’re Really Worth (via Digg)

Interview with Suicide Girls about Homeland, the sequel to Little Brother

My next novel, Homeland (the sequel to Little Brother) is out in a few weeks, and I recently sat down with Nicole Powers from Suicide Girls for an interview about the book and the issues it raises, especially the student-debt bubble:

When it was just rich people going, it wasn’t about just getting a better job, because you were already rich, you already had the entré into the better job. You could already do unfunded apprenticeships and your parents’ friends were the people offering you the unfunded apprenticeships. You had a good five ways within the system. But now it’s a market transaction, and once it’s a market transaction we start applying cost benefit analysis to it. We start saying, well if the university degree earns you so many pounds, then it makes sense to start talking about you paying so many pounds. And if the objective here is to take people whose lifetime income expectancy was so many pounds, and make it a little bit higher –– which is what we call social mobility –– then why shouldn’t that be a virtuous cycle and they pay back into it. That way the university can expand the number of students they take on and all the rest of it, right?

The problem with that is that it’s become a Ponzi scheme, especially in America. We haven’t quite gotten there here. But in America, you have this crazy thing where it is somewhat true and it’s also universally received as true, that you can’t get a good job without a university degree. It’s also the case that universities, including many state colleges –– that are actually owned by the public –– can act as loan originators, which is to say they lend you the money but where those loans are then backed by the federal government. They can lend you any amount of money because there’s no risk to them because the government will take the loan off their hands. Those loans are then further secured by the federal government when they float them as bonds. So you have this weird perverse incentive where the universities, the more they charge the more they get –– which is a bit weird right? Because in real market economies, the more you charge the more you get up to a point, and then people start going, wait a second, that’s not worth it anymore, and they stop paying in. But if I tell you that you can’t get a job unless you get a degree, and then I tell you that no matter how much the degree costs I can get you a loan for that much, all of a sudden you start getting takers for those crazy propositions and that starts to look like a bubble, like a pyramid scheme.

Cory Doctorow: Homeland

DOG vs. BUBBLES

Hysterical bubbles! (original) [Video LInk]