The massive distortions in the real estate market have stemmed from the wall of money created by decades of near-zero interest rates. This has driven serious malinvestment.

Was that capitalist? Well, the money supply is indirectly controlled by the Fed, which -- due to political pressure -- attempts to iron out the business cycle by creating walls of money every time it looks like things are getting choppy.

One could argue -- and I would agree -- that this is better than the pure unfettered capitalist alternative, which would see bank failures and people's life savings wiped out for no fault of their own. However, as a consequence, we get this absurd malinvestment problem.

There's more to this. You might ask, why doesn't the Fed just set the interest rate higher, so that people really need to have a productive use for money before they go buy up a bunch of houses? That hits at the heart of the stated goal to create persistent low levels of inflation, which allows the government (and debtors everywhere) to debase their debts. Because otherwise people wouldn't borrow as much money to drive economic growth. I find this nonsensical, because we loosening capital requirements creates precisely the malinvestment we want to stop. However, it's the government likes the ability to continuously debase its debt.

So it's not capitalism, and it's absolutely the result of policy choices, and it doesn't have to be this way. But it is because it suits the needs of powerful people in society.

Communists countries found ways to incentivize people to work. It's just that people ended up doing all the wrong things (in aggregate), and the system became hopelessly byzantine and corrupt. They really needed prices as a signalling mechanism for demand and scarcity. There's a great book on this by an economist. Socialism, the failed idea that never dies. Niemietz spends most of the time talking about the history of how people talk about socialism, but there's sections of the book specifically dedicated to a clear explanation of why it always must fail, and why it always must turn authoritarian. There's a short counter-factual story at the end, where East Germany is a non-authoritarian communist state, with precisely zero human rights abuses, and how the system of socialist incentives lead to complete dysfunction.

Indeed, complete with the "lost decade" that turned out to be 30 years of no-growth, and an aging population causing deflation. Except in China the problems are larger in scope, and the gradients are steeper. I'm not saying that China is going away. I mean, Japan is still there. It's just that the narrative changed on Japan, and it will change on China too.

In this video, university professor Patrick Boyle explains how short sighted pension plans destroyed the American auto industry. Once you look at the math, it's pretty obvious.

The misallocation of resources does have some benefits. It's still a misallocation, and thus, by definition, overall a problem.

Housing prices in the USA are set by the rate of interest (which sets mortgage serviceability), and the ability to build. As interest rates go up, housing prices go down. And houses are cheaper in red states that have fewer building restrictions, but still have, nonetheless, good job markets.

People made huge amounts of money off of housing in the USA, because interest rates slowly decreased from the 1980s until just a few years ago. Every time the interest rate was cut, incumbent home owners laughed all the way to the bank.

Those days are _done_. Interest rates bounded off near 0%, and we're staring down the barrel of sustained inflation. Nobody is going to make a fortune off of sitting on real estate for several decades.

If you want to buy a house, move some place where supply meets demand, making houses a little more expensive than the cost to build. There are many such places in the USA.

This is true. It's because China has high skilled and almost-slave labour colocated. And America has labour laws. What China is doing is impressive nonetheless.

It's absurd to compare freedoms in the USA to that of China, where political prisoners are literally chopped up to sell their organs. And Chinese people aren't stupid: about 3-4 million emigrate each year.

Parts of the Chinese economy are "pretty normal capitalism". However the majority of capital is directed by state banks to state industries. This is classical socialism, where the government controls the "commanding heights" of the economy. So pretty far from capitalism which relies on price signalling in the allocation of capital.

It's a brute fact that China's economy is suffering from a lack of price signalling, and that this is causing a massive misallocation of resources. The same thing happened to the USSR and the Eastern block, which certainly succeeded in driving steel production higher than the USA. Just... there wasn't any productive use for the oversupply. In the 1980s, one economist wryly noted that East German heavy machinery was worth less than the raw materials it was made out of.

The CCP is big on selling you on the idea of the inevitable rise of China. It's all optics. The psychological warfare of fear and greed. They are sitting on unprecedented levels of capital misallocation. Great. They can fix all that. But they'd have to change the system that produced the misallocation in the first place, and I certainly don't see that happening.

China isn't going anywhere. It's still going to be here in the future. The CCP has the tools of social control to pick winners and losers, and grind the underclasses to keep the system going. What's going to change is the optics.

Given the vast amount of data that is collected and sent to the mothership in modern "connected" cars, maybe they realised they can sell that on? Apart from all the obvious stuff like realtime tracking data and telemetry on your driving style while you are are on the road, there's your preferences on playlists, what kind of temperature you prefer (from which health info can be inferred), what stores you prefer and where your friends and family live, (extracted from parking location data), all tied into the real ID you used to buy and register the car - no "dark profiles" here.

It's a model that seems to be working very well for browers and certain OSs, as well as pretty much all of the Internet of Shit. It might cost a bit more and be a lot larger than some connencted $20+tariffs widget, but a modern car is still just another component of the IoS. It's said the margin on a mass market car is around 5-10%; care to bet that the captured data is being sold on to info brokers for a whole lot more?

This page claims over 400,000 recordings but links to a listing of only 187,034 audio files. I'm guessing the discrepancy is the girth of the suit: IA agreed to take down the files that the plaintiffs could prove were theirs and no money changed hands.

Or it's a new take on the "RTO Mandate" approach to headcount reduction leveraging a kind of reverse Dunning-Kruger.

Right now, everyone at Opendoor is thinking of their colleagues and wondering if they are in the 15% that won't get the cut. For a team of 20, that means you've got to either truly believe that you're in the top three of that group, are blissfully naive, or will be polishing your CV and getting it out to agencies this weekend, and since company morale just went to shit, there's a pretty good chance that a chunk of those who *are* confident they'll make the cut will be doing the same, because once everyone else is gone they're going to have a lot more work to do. Good luck running the company on the blissfully naive remants.

Yes, there's probably a LOT of deadwood at Opendoor but, like RTO Mandates, this isn't the best way to get rid of it, and will have the same result as RTO; a lot of the best and brightest will be deciding the door they really want is the exit door.

Rich people (at the level you are implying) are generally egomanical, narcissistic, sociopaths who have no idea how to do the day to day things in life because they pay other people to do it for them. If you cream off the ~10,000 wealthiest people on the planet and put them into a community of some kind, even with robots to do the bulk of the work, I would still predict you'd rapidly find yourself back with a "1%" of around 100 mega-wealthy people, amid on-going power stuggles that soon turn ugly and gut the robot population (who else is going to do the fighting?).

With the labour pool mostly gone, the total population of meatbags will reach 0 soon after. It'd be like the Golgafrinchan B Ark, only much more so.

Come to think of it, there's probably a pretty decent dystopian short story with some very dark humour there...

Let's compare, shall we?

Little Bobby Tables:

• No framework required: conventional database entry + payload only
• Wreaks havoc in an instant
• Total size: 32 bytes

This:

• Downloads ollama (672 MB, on Windows)
• Downloads a 14 GB data file for the model itself
• Requires a bare minimum of 16 GB of VRAM—and still runs like absolute molasses, eating up all resources
• Total size: 15 GB

Personally, I'm on Team Tables here. Maybe in a decade or three this will be practical.