More rural residents, businesses don’t have local banks to borrow from

A new study suggests fewer rural Americans have local banks who they can interact with and borrow from:

Increasingly, bank branches are headquartered in distant urban areas – and in some cases, financial “deserts” exist in towns with few or no traditional financial institutions such as banks and credit unions. That means that local lending to individuals based on “relational” banking—with lenders being aware of borrowers’ reputation, credit history and trustworthiness in the community—has dropped, according to a Baylor study published in the journals Rural Sociology and International Innovation.

Instead, more individuals launching small businesses are relying on relatives, remortgaging their homes and even drawing from their pensions—all of which are risky approaches, said lead researcher Charles M. Tolbert, Ph.D., professor and chair of the department of sociology in Baylor’s College of Arts & Sciences.

But for the 30 percent who obtain loans through the traditional lending method, that approach also can be very challenging, according to the research article, “Restructuring of the Financial Industry: The Disappearance of Locally Owned Traditional Financial Services in Rural America.”

Federal Deposit Insurance Corporation statistics showed that from 1984 to 2011, the number of banking firms in the United States fell by more than 50 percent—to just under 6,300—while the number of branches almost doubled, to more than 83,000, according to researchers’ analysis of data from the FDIC’s national business register. For the study, Baylor researchers partnered with the U.S. Census Bureau Center for Economic Studies.

I’m sure financial institutions would argue it is not as profitable to locate in more rural areas that do not generate as much business as denser areas. It would be interesting to look at the exact figures from financial institutions in rural areas: are they not profitable at all or are they just less profitable?

However, how essential are financial institutions to local economies? The same argument might be made about hospitals: they provide essential services even as they are not as profitable in rural areas. (I would guess people would probably rate health care as more important than credit access but both are important for communities.)

The article hints at another aspect of this change: fewer banks in rural areas means fewer relationships between lenders and residents. While forming relationships may take time, couldn’t they be better for business in the long run? Prioritizing efficiency and profits over people may be good for the bottom line and shareholders but it is the sort of approach that seems to have turned off a good number of Americans to large banks.

 

Rare: urban Millennial claims to miss the suburbs

This is not a piece from The Onion but rather a story at Atlantic Cities: a Millennial discusses why she thinks the grass may be greener in the suburbs.

I’m one of the thousands of Millennials who make up this new urban demographic. I left the comforts of Eden Prairie, Minnesota — a suburb of the Twin Cities and a community that has consistently been ranked one of the best small towns in America — for New York City. And while my move to New York was the right decision for a variety of reasons (or so I keep telling myself), I often wonder if the grass might indeed be greener—both literally and figuratively—had I stayed in the suburbs.While we’re on the subject, let’s talk about green space. Multiple studies have tracked the social, cultural, and emotional assets green spaces bring to a community, including mental health benefits and reduced rates of gun violence. While cities such as New York and Philadelphia have made tremendous gains in creating new and better public spaces in recent years — former New York City Mayor Michael Bloomberg presided over the biggest program of park building since the 1930s — too many urban communities are still “park deserts” compared to their suburban counterparts.

Another area where suburbs often trump cities is in the quality (or lack thereof) of their public schools. From the mass closing of public schools in Chicago to the “dizzying, byzantine system” eighth grade students and their parents go through to select a public high school in New York City, it is as hard as ever—if not harder—for parents to find quality public education for their children in large American cities. And this particular reality seems especially stubborn: students from suburban communities are more likely to graduate high school and go on to higher education than their urban counterparts, which of course in turn makes them more likely to get well-paying jobs as adults.

But the number one way the suburbs beat the city, especially for young people, is in affordability. After living in both Washington, D.C., and New York City, I can safely say that affording basic human necessities, such as shelter and sustenance—not to mention having a little fun here and there—is much cheaper outside of the city center. When paying $1,000 per month to share an apartment is a “good deal,” and when you don’t think twice about spending $14 for a single cocktail, what chance does a young city dweller have to actually save money? Not all cities are as insanely expensive as Washington and New York (Philly! Baltimore! Portland!), but when the mortgage on a spacious, four-bedroom home rivals the monthly rent of a cramped one-bedroom apartment, there really is no competition.

These are common arguments for the suburbs through American history back to the founding of some of the earliest suburbs in the mid-1800s: they provide green space and more nature, the ability to avoid “urban issues” like underperforming schools, and affordable housing compared to dense cities.

I have to wonder if her perspective is skewed just a little bit by growing up in Eden Prairie. As she notes, this is a community often marked as one of the nicer American suburbs. Not all suburbs are like this as they range from inner-ring suburbs adjacent to big cities to industrial suburbs to edge cities with lots of jobs to more exurban areas with bigger lots. Not all suburbs would have these three traits she claims are most important and others may offer features she does not discuss. On the whole, her arguments about the merits of the suburbs may be marked by a particular higher-end experience of American suburbs.

Americans across social classes spend a lot on housing and transportation

Derek Thompson points out some interesting household expenditure data from the Bureau of Labor Statistics: Americans spend quite a bit on housing and transportation.

Families with radically different incomes—from lawyers and doctors down to high-school dropouts—all spend about half of it on homes and getting around, which suggests an historically tight relationship between marginal income growth and marginal spending growth on real estate and transportation. You get a raise, you shack up with roommates. You get another raise, you get nicer studio. A bigger raise and you move out to the suburbs and buy a house—commensurably increasing your spending on transportation (bigger car + gas).

This monopoly of housing/transit dominance is sticky for many reasons—America is big and has space for houses but zoning often limits development, leaving us with high relative housing prices and rents; suburban sprawl invites car ownership; infrastructure supports a car culture; our gas taxes are low and mortgage interest deductions are high; the list goes on—but it doesn’t have to be this way. Not every country spends half its income on homes and cars. They have other priorities, like the UK, where the typical family spends a walloping 20 percent of its income on the super-category of “fun stuff”: culture, entertainment, sports, alcohol, and tobacco. Or look at Japan, which spends more than twice as much as us on food consumed at home.

And where might this money go if it was not spent on these two areas?

Imagine what would happen if we didn’t spend $1 in $2 on houses and cars. It would be rocky for the real estate and auto industries who have come to rely on a steady stream of spending. But it would leave a lot of money left over other stuff—like smartphones, and dinners out with friends, and shoes whose fanciness belies our income level. This isn’t a vision of the future. It’s a description of the way a lot of young people live today, particularly educated twentysomethings who’ve moved to urban light areas (e.g.: newer subrubs within commuting distance of the city proper, like Arlington, Va.) where they can save on real estate, take public transit, and preserve enough of their lowish salaries to cobble together a connected and fairly social life outside work, if they have it. Maybe these trends are recession-era fads that will fade with the recovery. If not, it’ll be a big deal.

Owning a car and a home simply seem to be foundational features of modern America and the American Dream. The first offers independence and mobility. The second offers a private retreat from the harsh outside world and one’s own land to do as they please (though owners might choose to be part of homeowner’s associations that limit their options to enhance their property values). Being middle-class, a desired goal of many Americans, is tied to these two items. They also point to a person’s identity, representing one’s status and personal tastes.

All that said, Thompson hints at the possibilities if these foundational values (dating to roughly the 1910s and 1920s and then cemented in the prosperous post-World War II era when they became more attainable) fade and are replaced by others. It isn’t just an economic question of what happens to the auto industry or builders but rather a larger question about American social life: could be truly imagine an America without widespread praise and chasing after houses and cars?

College architecture class develops floating “Petropolis” to be built in the coming years

An architecture class at Rice University developed an idea for a floating city for oil workers that may be built off the coast of Brazil in a few years:

The newer discoveries push the limits of normal helicopter range. That means getting to and from work on the oil platforms is both expensive and a grind. So the Brazilian oil company Petrobras is looking for a new, better way for its employees who must work on these platforms…Their solution seems right out of an Arthur C. Clarke novel. The class designed three large floating islands that are surrounded by 42 smaller islands. These smaller islands would provide the larger hubs with among other things, crops and electricity through solar and wave power. The three main hub islands would be as large as 1 kilometer by 2 kilometers [0.6 by 1.2 miles] and would be a mix of residential, office and industrial centers…

“With the ballasting techniques, not only can you raise and lower the island by the ratio of water to water, they also have techniques now for digitally sensing wave levels and these things are constantly being calibrated,” Bhatia says. “So the technique of using digital stabilizers that are constantly reballasting the tanks would be what was employed.”

The three hubs would serve as oil transfer facilities, pumping the offshore crude back to the coast through three large pipelines. The hope by Petrobras, the Brazilian oil company, is to build and have operational floating residential islands in the next five years. Just how much of the Rice students’ elaborate concept ultimately might be realized is still unknown. The company’s project is in its early phases on the drawing board.

It sounds like there would be a lot of work to design these but the idea is interesting. Oil companies might be one of few organizations that could pull this off given the resources and money needed, the expertise on hand (oil rigs are complicated in themselves), and the return on investment the islands might provide.

Additional questions I would want answered:

1. What is the maximum population for such islands? The article suggests 25,000 people – is this the maximum weight that might work or are there other considerations?

2. What would the life-span of one of these islands be and what happens when things start breaking/leaking/falling apart? (How many lifeboats have to be on hand?)

3. While oil companies may have the most interest now, how long until someone builds one of these for any number of reasons (pirate traders, people who want to live outside national borders, multinational corporations who want to be truly offshore, countries seeking military bases, etc.)?

 

3.

Building microhouses for the homeless

Several groups across the United States are building microhouses for the homeless. See a few of the different options:

144 square feet is the size of the average McMansion master bathroom. However, for residents at Quixote Village, those 144 square feet represent an entire universe. As the New York Times recently reported, the residents of the village are members of a long-nomadic homeless group called Camp Quixote—which had moved more than 20 times in the past seven years. On December 24, its members took up residence in 30 tiny homes, which each cost $19,000 to build.

Although the Times brought a ton of attention to it, Quixote Village is just one of a number of microhouse projects going on across the country. For example, a ten-year-old development in Portland called Dignity Village serves as a model for Quixote: A tent camp of roughly 60 homeless people, some of whom have set up shacks and cabins on the site, which is officially zoned as a “transitional housing campground.”

And in Provo, Utah, a local builder named Gary Pickering makes wheeled cabins, which he calls Dignity Roller Pods, for local homeless people. On his website, Pickering—who himself was once homeless—argues that “all homeless people should be able to stay on public lands that are clean and safe.”…

Meanwhile, in Madison, Wisconsin, a group run by Occupy Madison is in the process of building 30 even smaller microhouses for Madison’s homeless population.

It would be interesting to compare the costs of these tiny houses versus the costs of typical programs for the homeless, like shelters or other assistance programs. Are these tiny houses better long-term solutions in terms of cost and helping homeless people have more stable lives?

As the article notes, another issue here is where to find land to keep these tiny houses. Because of their size, they wouldn’t take up much space and some of them are quite mobile. Yet, having more permanent structures or spaces would likely meet with some disfavor by nearby residents.

All together, this sounds like an interesting application of tiny houses, but it will take some time to figure out whether they are long-term solutions to homelessness?

House of Cards may be all the rage but how many people have actually seen it?

Derek Thompson notes the disconnect between all the attention the TV show House of Cards is receiving versus the number of people who have actually seen it:

Netflix doesn’t share (and doesn’t care about) live audiences, and neither do its advertisers, because there aren’t any. So rather than rough Nielsen figures, we have to go by even rougher broadband analytics. But here’s our best guess: “Anywhere from 6-10% of subscribers watched at least one episode of House of Cards,” Procera Networks found, and in the U.S., “the average number of episodes watched during the weekend was three.” Fascinatingly: There was no appreciable increase in Netflix’s overall traffic.

Given that Netflix has just under 30 million domestic subscribers, that means that two to three million people watched House of Cards in its opening weekend. (A previous Procera estimate went as high as 16 percent of Netflix subs, or nearly 5 million.)…

It’s awkward to compare streaming estimates to Nielsen estimates, but it seems safe to say the average CBS program has at least twice times as many viewers as House of Cards...

The outcome is sort of weird. Pop culture critics, who tend to be attracted to the thing that’s most popular, mostly ignore the most popular shows on TV, which are lower-brow fare crafted to get high ratings. Meanwhile, a handful of networks whose business models rely on subscriptions rather than advertising amass all the most-talked-about shows on television. And that’s how the people reading about TV and the people watching TV live in two separate worlds.

A similar issue is taking place with the Best Picture nominees for this year’s Oscars: few Americans have actually seen any of the nominees.

Among other questions, the poll asked 1,433 Americans whether they had seen any of the nine best-picture nominees, plus two other films competing in other categories. The Academy Awards will be hosted by comedian Ellen DeGeneres on March 2.

Among those who responded to the online survey, Somali piracy thriller “Captain Phillips” was the most-watched film, at 15 percent. But 67 percent said they had yet to see any of the eleven films in the poll.

The outer-space drama “Gravity” was second with 14 percent, while crime caper “American Hustle” and “The Wolf of Wall Street,” Martin Scorsese’s portrait of 1990s greed and excess, each had been seen by 12 percent of those surveyed. The numbers include those surveyed who may have seen more than one of the nominees.

The survey found that 60 percent of respondents were unsure about which film should win best picture. Slavery drama “12 Years a Slave” had the most support at 9 percent.

With the fragmentation of media in recent decades, this shouldn’t be any surprise: viewers can see what they want and now, can often do it when they want. It is difficult to really have a larger, public, shared conversation in the United States about a single media event like it would have been fifty years ago when the Beatles first appeared on The Ed Sullivan Show. It might only be possible today with real-time events, like the Super Bowl or major political happenings (though now people can watch many sources broadcasting and interpreting the same events) or coverage after a major disaster.

Perhaps this also helps explain the popularity of viral videos: compared to the time investment for a TV series or a movie, a video tends to only take a moment or two but the viewer can then be an expert or a participant immediately.

Smart highway features coming to two Chicago highways

A stretch of I-90 will be a “smart highway” within several years:

By 2016, the Tollway plans to install an elaborate system of sensors, cameras and overhead signs on a heavily traveled stretch of the Jane Addams Memorial Tollway (Interstate 90) between the Kennedy Expressway and Barrington Road in Hoffman Estates.

The plan is similar to, but more sophisticated than, a $45 million initiative that the Illinois Department of Transportation will implement during the next two years along the Edens Expressway and the northern stretch of U.S. Highway 41.

The Tollway plan includes installing signs with red and green signals over each lane at every half-mile that would advise motorists about safe speeds and warn of lane closings from accidents or breakdowns…

The goal is to make the Addams, which handles about 317,000 vehicles a day, “a true 21st-century, state-of-the-art corridor,” Tollway officials say.

The fiber optics and other infrastructure being installed on the soon-to-be rebuilt stretch of tollway will be able to accommodate even more sophisticated technology, which might someday automatically drive cars, officials say…

Tollway officials said Washington state’s experience with ATM has been compelling. The system is in use on I-5 in Seattle and on I-90 and State Route 520 between Seattle and Bellevue, and since 2010, the Seattle area has seen an 11 percent decrease in primary accidents and a 40 to 50 percent decrease in secondary accidents, officials said.

While highways in the United States are an engineering marvel, the lack of information about conditions on them has always struck me as a bit odd. It sounds like this new system is intended to provide information for two main purposes: warn people of upcoming obstacles which could then lead to fewer accidents and also to tell people of slower travel times so they can then make decisions about what roads to use.

Up to this point, motorists have been limited to varying levels of information:

1. You see what is front of you. Sometimes, you can spot some of these problems a long way away and get off sooner. But, too often, the line of sight is blocked and before you know it you are in a slow stretch without any alternatives.

2. Traffic reports on the radio. The veracity of these reports can vary.

3. Traffic data now available on GPS and smartphones. These seem to be generally accurate.

4. Cameras along heavily traveled routes. For example, see this set of images from cameras along I-80/94 at the bottom of Lake Michigan. This is more useful these days with smartphones.

Of course, this article also hints that this may just help set up the infrastructure to have completely smart cars where all of the information may be wirelessly passed between cars and limit the human dimension all together.

Critiquing a high-security bunker McMansion in New York City

McMansions may be designed to impress but what happens if they are built in such a way to push away the outside world? See this example from New York City:

The massive, ground up 7,000-plus-square-foot West Village McMansion belonging to oil heiress Hyatt Bass and her screenwriter husband is being quietly shopped around, the Post has learned. There’s no official listing yet, but Bass hopes to fetch $35 million or more for the fortress home, which was built to be impenetrable following a 2007 incident in which Bass’s mother was held hostage in her own Connecticut abode. Since it was unveiled to the public last year, the bunker home, at Greenwich and West 12th Streets, has made headlines for its incongruous brutalist architecture and ultra-high security features.

Bass purchased the property for $7.5 million in 2001 and has reportedly never occupied the 802 Greenwich Street citadel. Earlier in the year, the compound was brought to our attention by a tipster for failing to shovel out front (Guess no one was there to turn on the heated sidewalks that were installed over the summer.) Someone who recently toured the property told the Post that the it feels “locked-in” and “weird” despite its well-appointed terrace and garden. We have a feeling that this home, built “specifically for this family around their security needs,” is likely to have a hard time selling. When it does, we hope the new owners throw a cornice or any other kind of architectural detail on the misplaced stronghold in the heart of the historic district.

This large home seems to share the odd architectural stylings that tend to mark McMansions. Yet, that odd architecture is often intended to show something positive about the owner, to represent some marker of success or wealth. But, this particular combination of architecture is intended to clearly set the house apart from the public even though it is in a very public setting. Is this even a more in-your-face McMansion because it intentionally pushes people away? Could a home be built that combines the security features found here, the size of this home, and a more welcoming exterior or does privileging security necessarily lead to an outcome like this?

Differences in selfies across global cities

A new online project finds that selfies taken in different global cities like Moscow, New York, and Sao Paulo exhibit some differences:

That seems the most salient takeaway from “Selfie City,” an ambitious selfie-mapping project released Wednesday by a group of independent and university-affiliated researchers. The project sought to extract data from 3,200 selfies taken in Bangkok, Berlin, Moscow, New York and Sao Paolo, then map that data along demographic and geographic lines. Do people in New York smile more than people in Berlin? (Yes.) Does the face angle or camera tilt say something about culture? (Possibly.)…

Many of the researchers’ findings are less than conclusive — there’s either not enough data, or advanced enough analysis, to really make sweeping statements without a bit of salt. The photos — 20,000 for each city — were scraped during a one-week period in December and analyzed/culled to 600 by computer software and Mechanical Turk. While 600 photos may seem like a lot, there’s no indication whether that number is a statistically significant one, nor whether the culled photos represent each country’s Instagram demographics…

Selfie City has found more evidence for a phenomenon both sociologists and casual users have noted already: women take far more self-portraits than men. (Up to 4.6 times as many, at least in Moscow.)…

They also suggest that people take more expressive selfies and strike different poses between cities. Bangkok and Sao Paulo, for instance, are by far the smiliest — Moscow and Berlin, not so much.

Sounds like a clever use of available images and analysis options to start exploring differences across cities. While not all residents of these big cities will follow such patterns, cities are often known for particular social features. New Yorkers may be relatively gruff. Other cities are known as being open and friendly – think of the popular images of big Brazilian cities. (I wonder how much this will come up with future World Cup and Olympics coverage.)

At the same time, how many selfies would a researcher have to look at to get a representative sample? Over what time period? And, perhaps the underlying issue that can’t really be solved – this is likely a very select population that regularly takes and posts selfies (even beyond whether this represents the typical Instagram/social media user).

How TV presentations of the Olympics differ around the world

Cultural differences and nationalistic pride are on display when watching the Olympics in different countries:

In Sweden, commentators have fun with Norway’s misfortunes. The Dutch can’t get enough of their speedskaters. Japan is so crazy about figure skating they show warmups. Canada is hockey crazy, Russia struggles to stay positive even when things look down and the U.S. salutes its stars with the national anthem as it’s time to go to bed.

There’s only one Winter Olympics. But in reality, for television viewers around the world, the Sochi games are a different experience depending on where you tune in.

Some 464 channels are broadcasting more than 42,000 hours of Sochi competition worldwide, easily outdistancing previous Olympics, according to the International Olympic Commission. Digital platforms push that number past 100,000 hours. Worldwide viewership statistics aren’t available, but the IOC says more than three-quarters of Russians have watched some coverage, two-thirds of South Koreans and 90 percent of Canadians.

Read on for some more details of presentations in six different countries.

While we make much of the idea of globalization these days, it strikes me that we are still far away from being able to watch how other countries present the Olympics. TV deals for the Olympics are locked in country by country. In the United States, NBC paid roughly $775 million for the 2014 Sochi Olympics, about 61.5% of all TV broadcast revenues for this Olympics. That means we are generally stuck with their coverage, either on TV or through their website. What if we could watch any international feed? What if all of these feeds were available online for free? We are probably far from this because there is too much money involved for TV broadcasters who still often follow national boundaries.

You could get a taste of these differences in Olympics coverage through non-TV sources, like websites or newspapers. However, that is still different in watching it in “real-time” and seeing how commentators react in the moment. Plus, it takes extra work (though maybe not much) to track down these different sources and compare.