Month: June 2008

The Market and the Government, by Arnold Kling:
On the one hand, The Washington Post reports,

high fuel prices are having disparate effects: the end of free pizza deliveries at major franchises, a plunge in the sales of sport-utility vehicles, a steep drop in the price of houses that are far from jobs or mass transit.

On the other hand, from another story on the front page,

In 2004, as regulators warned that subprime lenders were saddling borrowers with mortgages they could not afford, the U.S. Department of Housing and Urban Development helped fuel more of that risky lending.

Eager to put more low-income and minority families into their own homes…HUD stuck with an outdated policy that allowed Freddie Mac and Fannie Mae to count billions of dollars they invested in subprime loans as a public good that would foster affordable housing.

…From 2004 to 2006, the two purchased $434 billion in securities backed by subprime loans, creating a market for more such lending. Subprime loans are targeted toward borrowers with poor credit, and they generally carry higher interest rates than conventional loans.

These stories illustrate that markets adapt while government regulation can exacerbate problems. However, I doubt that this will alter the standard narrative, which is that every imperfection in markets requires more government regulation.

Anne and I are going to start blogging our dining experiences. There are too many good and great places to eat in Houston to waste time on mediocre and poor restaurants.

Unfortunately, our first post will be a negative review of one of my old favorites, Java Java on 11th in the Heights. Back in the day, they had really good coffee and incredible croissants, and we decided to visit today after church. What a disappointment. Our table was quite rickety, and when we pointed this out to our waiter, instead of offering us another table, he just suggested we shim it with some sugar packets. I ordered the Eggs Benedict la Java [sic, not ‘à la’] and Anne had the California Burger. I started with a cup of the Flavored Coffee of the Day, which was toasted almond; not bad, but switched to regular after one cup. Despite the restaurant being less than half full, and at least five folks waiting tables, we had a heck of a time getting our beverages refilled, and it took an inordinate amount of time for our food to come. The hollandaise sauce had completely drowned the croissant the eggs were sitting on, evidence of how long it had been waiting to be delivered to our table. In addition, the croissant they used was so tough on the bottom I could not cut it with my knife. Anne’s burger was dry and way overcooked, and the advertised cilantro mayonnaise was just plain mayonnaise with a little cilantro sprinkled on top. My grits were very good, as were Anne’s fries, but not nearly enough to salvage the meal. Poor service and poor food lead us to give it a Red Light: Don’t Bother.