This new Michael Lewis piece is worth reading. It must be fun to go for a bicycle ride with Arnold. To my fellow worried home owners in California, let’s go back to basics. 1. We are an urban nation. 2. The key determinant of urban growth is attracting and retaining the skilled. 3. California has the best quality of life in the nation and perhaps the whole world. 4. The skilled greatly value quality of life. Combine these facts together and we arrive at the conclusion that California has a bright future. Yes, public sector employees have swell pensions. Yes, Prop 13 is silly. Yes, I have trouble naming which industries will boom in California in the next 30 years. But, California offers a unique experience and life is short. People who want to live well will sing those Beach Boy songs and join us on the West Coast.