Weekend Links

• The above shows the relative trends in the different parts of the US by climate zone - amount of winter heating required.  As you might expect, the US population has been gradually shifting to the sunbelt over the second half of the twentieth century.  My guess is that climate change will gradually reverse this trend over the twenty-first century - events like the drought last year in Texas will affect the south and west more and more and the longer-settled colder parts of the country will start to look better by comparison (not to suggest that they won't be affected too).
• Climate change: drought is a greater threat than storms.  I'm in agreement.
• Should we retreat from the beach?
• High IPO valuations appear to be driven by institutional demand.  This makes sense to me - when yields on almost everything are tiny, the valuation of new companies with growth prospects should rise so that their yields are less out of line with other assets.
• Percentage of mortgages delinquent by state over time.  This data is quite illuminating and caused a significant update in my views of where the residual housing pain is concentrated.
• The current European recession is now officially recognized.