On Obama's High speed rail plan

"I'm happy to be here. I’m more happy than you can imagine," said the Vice President, a noted rail enthusiast, before introducing the President for the release of his strategic plan for high speed rail in America. Revolving around the $8 billion in the Recovery Act and the $1 billion per year for five years requested in the President’s budget to get these projects off the ground"
That was VP Biden's remarks back in April to launch the administration's vision for high speed rail.

So, four months later, what do we think?

First, here is Sam Staley at Reason:

For transportation investments to have a meaningful economic impact, they will need to cost-effectively improve America's ability to move goods, services, and people from one place to another. High-speed rail doesn't do that. It is an extremely costly way to achieve limited portions of these goals, and it inevitably fails as a broad-based solution to the country's transportation challenges.

In the end, high-speed rail's contribution to the economic recovery and the nation's economic productivity is being oversold. Elected officials, from Rep. Cantor to President Obama, would do a far greater service to the public's understanding of the economy if they would focus on economic fundamentals, not glitzy boutique policy programs that will inevitably fail to meet grandiose expectations they have created for them.

Staley's bottom line is that the high speed rail plan fails as a stimulus program and does not create jobs.

Ed Glaeser looks at whether the proposed high speed rail would help America's other great problems--sprawl.
For illustrative purposes, Glaeser considers the Dallas-Houston corridor, which, as he points out, is not in the Obama plan. Glaeser notes that:

Despite the lack of any positive evidence linking centralization to high-speed rail, I certainly accept that there is a great deal of uncertainty. To give rail the benefit of the doubt, I’ll assume that high-speed rail will cause 100,000 households to switch from suburb to city in both Dallas and Houston. This change would create extra, annual environmental benefits of $29.7 million. These benefits would be real, but they would still do little to offset the $524 million or $401 million net annual loss discussed above.

What do I think? High speed rail is so 19th century a solution for a 21st century Great Recession!

Bakersfield, too, contributed to Lehman Bros' demise

In light of Lehman Brothers' bankruptcy, am reposting an earlier one:
We lived in Bakersfield, CA, before moving to Oregon. We sold our home just before the real estate mania set in. Bigger and bigger homes were being built, and speculators (flippers) were buying from all over. McAlister Ranch was one such mega project, which is one of the reasons that Lehman Brothers is now in a mess (watch the following YouTube clip)



I tell you, we are the United States of Gordon Gekkos :-(
Update: the Bakersfield Californian lists the investments in Bakersfield and Kern County with the Lehman connection.