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BubbleWatch

Uh oh. After explaining the difference between housing in the middle of the country ("Flatland," where sprawl keeps prices in check) and the coasts ("Zoned Zone," where space constraints and land-use restrictions can inspire inflated prices), Paul Krugman says it's all over:

Now we're starting to hear a hissing sound, as the air begins to leak out of the bubble. And everyone - not just those who own Zoned Zone real estate - should be worried.
And here we thought that sound was just our servers. (At the risk of over-extending our Learning Annex economics education, may we offer another reason ? beyond the hopes of illusory capital gains ? that homebuyers may continue to pay to play in Zoned Zones: they ain't moving to Flatland! Paging David Brooks!)
· That Hissing Sound [NY Times]