I would have thought its one to one, but the models say its only threequarters. So if you get six degrees warmer, you actually literally cannot go outside. But we werent around in the times things were like this, and surely we could evolve. If you give it enough time. But we wont. Right . And so the scenario which scares me the most is that you actually have to go you cannot go outside, and you rely on airconditioning for dear life. Its not a convenience. Its otherwise to you cannot make it. And we know that from mining. Miners going into very deep mines have to wear ice vests in order to manage their body temperature. And thats because the humidity there is high, and the temperature is high. In arizona you can sweat, and you cool, right . In 36 degree dew point temperature, as the meteorologists call it red bulb temperature, you actually cannot survive. So life could get rough, right . And we are making changes on a scale evolution didnt really have to deal with. And i would argue at
The fed was very accommodative, and we started to build a housing bubble which we burst in 2008, and now i think arguably in 2013 we may have created or at least started to create another equity bubble that in some areas, perhaps many some real estate markets, is also turning into a bubble. New york city, toronto, we were talking about this at lunch, other urban centers, especially those attractive to foreign buyers are seeing very rapid increases whereas in more rural areas thats not happening. So how do we, how do we respond to this, and what does this tell us about the future . One of the things thats emerged here is that the financial and real estate markets have in the United States and perhaps elsewhere have developed a kind of uncomfortable codependence with the central bank. That is, if markets, especially lets say equity markets in the last several years, are very resilient in the face of threats. We saw this in recent weeks where all the armwringing, handwringing and talk abo