San Francisco Blues
In San Francisco, a mounting housing crisis has given rise to a sprawling underground market where desperate residents turn to unregulated and unpermitted accommodations as legal options become increasingly scarce.
A recent lawsuit in Chinatown, which resulted in a fine exceeding $800,000 for the illegal conversion of single-room occupancy (SRO) hotels, illustrates the widespread and entrenched nature of the problem. This phenomenon, Calton argues, is not an inevitable failure of markets—but a direct consequence of overbearing regulation.
San Francisco’s restrictive zoning, discretionary permit system, and costly legalization process (with estimates suggesting that only 140 of the 50,000 unauthorized units have been legalized since 2014, at an average cost of $60,000 per unit) have driven housing into the shadows.
The article draws on broader economic theory to highlight how black markets form when legal trade is suppressed—fueling unsafe alternatives and stripping away safety regulations altogether. From outlaw “in-law suites” to a bizarre floating rental scheme involving an illegally moored tugboat, San Francisco’s housing underground spans from the commonplace to the extraordinary.
Ultimately, Calton insists, the solution lies in restoring free-market principles: secure property rights, transparent competition, and restrained regulation—not punitive measures alone. Without addressing the root causes of licensing burdens and arbitrary oversight, the city risks perpetuating the very illicit markets it seeks to eliminate.
In Arizona

Arizona has substantial salt resources: rock salt, potash, gypsum, and anhydrite. In fact, some of the deposits are among the thickest such deposits to be found anywhere in the world. Industrial salt mining occurs in the Phoenix basin. Salt deposits near Phoenix and Holbrook are used as a geologic repository for storing liquefied petroleum gas (LPG). https://library.azgs.arizona.edu/item/AGSC-1552426849528-656
Business
I’ve always thought that it’s really tough to succeed in business. You’ve got to worry about government regulations, a shortage of dependable employees, the 20% of customers who are Karens or Karen-adjacent, and brutal competition. Grocery stores have profit margins between 1-2%; half of restaurants are out of business within 5 years. If you’re a small business, the big boys will try to crush you. If you’re a big business, the ChiComs will steal your IP and undercut you.
So yeah, business is tricky. (It’s undoubtedly not government, where you have to embezzle millions and rape a nun in front of many witnesses to lose your job, and a program or department can fail for many decades, and still have eternal life.) You’ve got to put substantial stakes at risk and work your butt off, and you still might fail.
I’ve been watching our culture for the last five years or so, and I’m starting to ask myself a new question: How hard is it NOT to ruin your business?
Consider Bud Light. You’ve got a built-in audience of semi-drunk frat boys and former frat boys who will continue to buy your product out of a kind of tipsy muscle memory. You’re on autopilot. Just keep turning out middling beer and hammering checks.
Then, you hire some woke management who puts an AWFL (affluent white female liberal) in charge of marketing, and she starts by saying that frat boys are disgusting, and we want a new audience. And she hires a ridiculous boner-killing he/she to call into question the masculinity of anybody seen drinking Bud Light in public. And billions of dollars fall off your market evaluation overnight.
Or say you’re Jaguar. British vibes, sexy lines; even the ridiculous Brit mis-pronunciation of your name (jag-you-are) is cool, somehow. (For the proper pronunciation, check the Jacksonville NFL franchise: jag-wahr. You’re welcome, Nigel.) So do you run an ad campaign with some James Bond-looking guy in the driver’s seat, with an attractive female in the passenger seat, giving him a look like she can’t wait for him to get her home so she can throw herself on him like JB Pritzker on a deep-dish pizza? No. You hire a bunch of androgynous freaks with rhombus-shaped haircuts who look like the casting call for that old SNL sketch about the German new-age music show. (“Now is the time on Sprockets ven ve dance!”) (Google it.) And you shoot them on a sound stage modeled on a Salvador Dali nightmare on Planet Teletubby, with a soundtrack from an Eastern Bloc Devo cover band. And you never show a Jaguar for even one second! Annnnnddddd… market share collapse.
Or how about Victoria’s Secret? Talk about a bulletproof built-in market! You’re shooting for the 97% of men who will drive into the back of a city bus or fork a piece of steak right into their own eye if an attractive female walks by wearing a lot more clothes than a Victoria’s Secret model. And 97% of women who want to appeal to them. For decades, VS followed a tried-and-true approach: pay 20-something genetic freak supermodels to eat like a rabbit and be photographed with six square inches of fabric covering the points of most interest, and then back up a Brinks truck to the cash register and watch millions of customers throw heavy bags of cash into it. But along come the AWFLs and the misogynistic gay guys, with their brilliant plans to fix something that isn’t just NOT broken, it’s un-freaking-breakable. “Let’s get some morbidly obese women whom men would pay to put on some clothes, and shoehorn them into some slinky unmentionables. Make sure the camera crews wear mylar face-shields lest a thong or garter belt succumbs to physics, snaps with a rifle-shot sound, and takes out an eye.” Then another one says, “I’ll see your Rosie O’Donnell gambit, and raise you a Dylan Mulvaney. That’s right, let’s strap some mentally unstable men into that lingerie. And before you can ask, NO, we’re not going to photoshop out their shaving shadows or tell-tale testicles.”That’s a thing that happened in the world. Victoria’s Secret kicked Gisele Bundchen’s and Heidi Klum’s firm behinds and voluptuous breasts to the curb, replacing them with Admiral “Rachel” Levine in a lacy Babydoll contraption, and a Lizzo look-alike in a pair of critically unstable boy shorts. It was all bulges – either phallic or adipose – as far as the eye could see and the gorge could rise.
And Sports Illustrated followed suit (!), turning the once-coveted swimsuit edition into the visual equivalent of Chinese water torture, without even the chance to catch a glimpse of a random Fang Fang in her skivvies.
Or how about the NFL? Football is an unscrew-up-able product, right? It’s America’s sport, and the competition is not particularly close. Your audience is essentially straight males and their straight female companions; a majority of them are white, and the kind of non-racists who will happily root for a predominantly black league. The vast majority of them are politically conservative, and the few others are apolitical. And you want to talk about loyal? The Bears have sucked for a generation, but Chicago still supports them. Cleveland hasn’t been decent since Jim Brown was a teenager, and that town comes out in a snowstorm to watch a mathematically eliminated team play in a blizzard in the first week of December. So what does the NFL do? They try to force whiny leftist politics down the throats of their rock-ribbed conservative audience! They dress their players in pink and deck them out in “stop breast cancer” gear.
As everybody knows, the top two causes of breast cancer are complicated blocking schemes and a blitzing defense, I guess? “Did you hear about Janice in accounting? She just had to have a double mastectomy.” “Oh no!” “Yep. Apparently, she had a lot of exposure to pulling guards and trap blocks on stunting defensive ends, so…”
You have a chance to highlight a player like Tim Tebow – studly, telegenic, proudly Christian, and patriotic. He participates in various charity initiatives, including organizing prom events for children with disabilities. He’s the closest thing to Jesus ever to put on cleats – if Jesus could bench press four Mamdanis, each holding 100 pounds that they couldn’t lift by themselves. So does the NFL brass thank their lucky stars and put Tebow on the cover of Madden 2011? No, they rend their garments and cry out, “Give us Barabbas!” And by Barrabbas, they mean America-hating, whitey-hating, but raised by white step parents, far-left problem-child Colin Kaepernick!
Then the league slathers the field with insulting sayings like “End Racism,” as if a bunch of white guys cheering for guys named (I’m not making these up) Barkevious Mingo, D’Brickashaw Ferguson, and Dontayvion Wicks need to be reminded not to be racist. And after all that…flamboyantly gay male cheerleaders. And zero NFL fans want to see that!
Which brings us to Cracker Barrel. Oh, Cracker Barrel. Another franchise that is not broken. So naturally, some woke doofi are intent on fixing it. They, too, have steered into the skid of “how can we remake ourselves into something that our customers will hate?” And I just don’t get it. They’ve seen what happened to Bud Light, Jaguar, and a dozen others. And yet they still said, “Hold my sweet tea, and watch this.” They took their familiar logo – which consisted of an old white guy sitting next to an old barrel – and they removed both the cracker and the barrel. And replaced them with a generic black-letters-on-orangish-background logo saying, “Cracker Barrel.” Which looks like it could just as well say, “Dollar General.” Or “DeWalt Tools.” Or “Federated Waste Management.” And after a brutal roll-out during which they’ve received 99% negative feedback, the corporate chieftains – none of whom I’m guessing could bait a hook, load a shotgun, or tell grits from Shinola – are sticking with their idiotic re-brand…maybe. Then again, word is that they have reverted back while keeping the sterile, stupid, newly imagined interior.
Bud Light, Jaguar, the NFL, Cracker Barrel…. They’re all treating their customers the same way Democrats have been treating their voters for the last 4 years or so. The voters say, “We want a secure border, and more cops on the beat, and no more dudes in women’s sports and locker-rooms, and lower inflation, and cheaper gas.” And the Democrat bosses say, “Oh yeah? Well, here’s a bunch of MS-13 gangbangers for your neighbors, and lawless streets, and Will Thomas is going to shower with your daughters and whip them in the pool, and you’ll eat $20 eggs and pay $6 for a gallon of gas, and you’ll LIKE IT! No crackers for you, and the barrel is empty! Now watch Dylan Mulvaney put on makeup and pretend to be aroused!! You inbred hicks!”
Clothes Make the Man?
I usually wear a suit, but for a 25-hour journey home, I opt for comfortable clothes—photo taken in the VIP lounge at Baghdad International Airport. I ended up staying in a hotel in Doha overnight on the way out. Hopefully, I can avoid that on the way back. It was incredibly hot AND HUMID in Qatar.

***
Bullet Points:
** Something to note for the historical record. Baghdad is more peaceful than Chicago, Baltimore, Los Angeles, and most American inner cities. Though there are reports to the contrary, I have had considerable face time with Prime Minister Mohammed al Sudani, his closest advisors, key cabinet ministers, including the Iron Lady (Finance Min), and Ali Nazar al-Shatari, Director General of Iraqi SOMO. You could call me a naif or an easily swayed idiot, and you have the right to your opinion, but I found them all to be sincere, intelligent, and firmly backing MAGA. You will see some big things coming from this direction in the upcoming weeks and months—tectonic changes in a very good way. (your favorite blogger, right)
It looks as if I’ll be in London next week for work, at the same time as LSP will be visiting the King or Duke Somebody there. We chatted, and I plan to join him at one of his Brit Clubs and order Beef Wellington and roasted potatoes. I need to pack a blue blazer with an ST-5 Crest or similar on the pocket, along with mini-medals, in the style of Old Blighty. I was seconded to 62 Commando in 1975, and I have stuff from that era in my footlocker, so maybe I’ll go in that direction.
** Yachting with EdB.
** From Larry Correia (opinion): It isn’t about deploying the National Guard. The problem is democrats suck at basic governance in a manner that invites violence and chaos. It’s that old trope: inside you, there are two wolves, and the one you feed is the one that wins. The democrat wolf is fucking retarded, and thinks getting accosted by street shitting schizophrenics, having everything locked up at Walgreens, and getting beaten and molested on the subway is just everyday living. You could deploy the Cub Scouts and crack down on crime, provided you don’t let democrats ever run shit. You get what you tolerate. Democrats tolerate dumb shit. That’s their fundamental makeup, and the ones in charge don’t give a shit about the consequences. They don’t live among the peasants!
** The most Russian man in the world. Nostrovia, my friends. (note: “Nostrovia” is not an actual Russian word but an English mispronunciation of the Russian phrase “Na zdoróvye” (На здоровье), meaning “to your health!” or “cheers!” and is a common drinking toast in English-speaking contexts. In Russian, “Na zdoróvye” is typically used to respond to a “thank you” (e.g., for a meal or drink) with “you’re welcome,” rather than as a drinking toast, where the correct phrase would be Za zdoróvye (За здоровье).
A Riviera!
Washington Post: “The Trump administration and international partners are discussing proposals to build a ‘Riviera of the Middle East’ on the rubble of Gaza. A postwar plan for Gaza circulating within the Trump administration would turn it into a trusteeship administered by the United States for at least 10 years while it is transformed into a gleaming tourism resort and high-tech manufacturing and technology hub.
The 38-page prospectus seen by The Washington Post envisions at least a temporary relocation of all of Gaza’s more than 2 million population, either through what it calls “voluntary” departures to another country or into restricted, secured zones inside the enclave during reconstruction. The trust would offer landowners a digital token in exchange for rights to redevelop their property, which can be used to finance a new life elsewhere or eventually redeemed for an apartment in one of six to eight new “AI-powered, smart cities” to be built in Gaza.
Each Palestinian who chooses to leave would be given a $5,000 cash payment and subsidies to cover four years of rent elsewhere, as well as a year of food.”
(VM comment: No Middle Eastern country wants the Palestinians to settle there, but Ireland has opened the door. They’ve become very woke there, even as Germany, the UK, and other European nations are trying to divest themselves of “human lice.”) I’m sure that the Palestinians living in new ghettos from Derry to Dublin would lovingly embrace their hosts. It’s how they roll. Would Ireland also accept the two million or so Palestinians living in refugee camps in Jordan? Why not? I’m sure that Jordan would pay the Irish to take them.
TDA
In an interesting bit of synchronicity, on the very same day that a federal appeals court declared that President Trump can’t deport Tren de Aragua gang members as alien invaders because we’re not at war. They’re not a dangerous invading force. Trump ordered a military strike on a drug-filled boat in international waters that was heading for the US, killing 11 Tren de Aragua narco-terrorists on board.
Trump posted on Truth Social, “TDA is a designated Foreign Terrorist Organization, operating under the control of Nicolas Maduro, responsible for mass murder, drug trafficking, sex trafficking, and acts of violence and terror across the United States and Western Hemisphere…No U.S. Forces were harmed in this strike. Please let this serve as notice to anybody even thinking about bringing drugs into the United States of America. BEWARE!”
Secretary of State Marco Rubio said this is a message that “the President is going to be on offense against drug cartels.” Let’s hope it’s also a message to certain judges that it’s not their job to determine what constitutes a national security threat.
Identify the Ship
1

2
My favorite from the Kriegsmarine in WW2
Hint: The ship was built at the Kriegsmarinewerft dockyard in Wilhelmshaven; the ship, alternately referred to as a battleship and a battlecruiser, was armed with a main battery of nine 28 cm (11 in) C/34 guns in three triple turrets. Plans to replace these weapons with six 38 cm (15 in) SK C/34 guns in twin turrets were never carried out—she and her sister menaced Allied shipping.

3
Note, Iraqi flag…

End
1?
2 is Gneisenau sister ship to Scharnhorst t
3 is Taiwanese-built 28-meter Predator-class patrol boat. Iraq has five of them.
2 is the Scharnhorst. Yes on #3.
Identify the Ship:
1. Israeli-built Sa’ar 4-class fast attack craft of the Chilean Navy.
2. KM Scharnhorst
3. Predator class FAC
Excellent!
Business: ‘Amen!’ to all of that treatise. Similar sentiment as DeSantis eliminating Florida’s child vaccine mandates, with his Surgeon General stating without equivocation, “Forcing parents to inject some solution into their children’s bodies is slavery”. [Big Pharma going ballistic as their K-Street gravy train is being derailed]
How many of us can recall the time when the school nurse coming in to administer “shots” (albeit we only had maybe 4 or 5, not the 10x number kids are subject today). Hell, some on that side of the demented fence are NOW saying PDJT was never shot in Butler…(What the…@#$&*!…insane doesn’t come close…yet the lemmings ‘believe’)
Government et al, as Correia says about Democrats, is demented in their demand WTP follow – without question but with full compliance – their ever-expanding made-up controls based in paranoia and/pr threat. (“6ft apart” anyone?).
Now, lets do property taxes and insurance and residential building permits, nothing but controlled legal thievery. Time For A Reset (TM) is at hand.
***
Looking good there LL…overseas travel is not for the feint of heart. When going to The Motherland be careful to not post anything controversial, don’t want to have to assemble a rescue team. (kidding of course)
That’s me at 0200 in Baghdad, not having slept enough in 4 days to speak about.
Hope you can get some sleep soon.
LL is giving PDJT a run for his money. Tireless.
When I was 40, yes. But that was three decades ago.
I feel it my duty to mention that there are, in fact, two very good reasons to stop breast cancer, one on the left and one on the right, and I have a piece of steak lodged firmly in one eye to prove it…….
That paragraph under the Business subtitle is one of the funniest things I’ve read in ages! Congratulations and thanks are in order.
I copied it to Facebook.
With attribution.
Brilliant!
Liquid Petro storage in Salt mines? Can one of my elders here explain this plz?
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LPG saga out on the left coast; My 2 cents. In the early 2000’s a close friend of mine, an attorney, immigrated from Cali to Southern Oregon. He worked on a project for yrs as a rep for Coos County to be able to extend gas line from Klamath Falls area to the port in Coos Bay. 10. yrs later we have it! It is… but isn’t,
*
( you know , Newsome and Portland light rail style of get’r dumb). So, according to what I’ve heard, it’s capped off and not even connected to the little town that is the county seat! Stopping short, just 25 miles SE of where industry could thrive from an economical source of power and heat. Please if you would Don, correct any facts or new ” real” developments. Such as rumored shipping container facility and rail line rebuilding to Eugene.
LPG storage in old salt mines is a thing, GFW. Not mining by excavation, but by water injection. Caverns are formed during salt extraction by the injection method, where water is pumped into the salt formation and the brine pumped out and dehydrated for the salt. The salt formations the resulting caverns are formed in are alleged to be very stable geologically and therefore considered safe for gas storage. Usually. As always, however, there will occasionally be a drawback to every system:
https://en.wikipedia.org/wiki/2001_Hutchinson_gas_explosions
I should have said “evaporated” instead of “dehydrated.” Oooopsie!
So, the basic problem with growing or mining stuff is… where do you store it until you sell it? Where can you store it long-term if the market price drops too low, that will not contaminate it, nor suffer lossage, nor cost so much that it eats any potential profit? Also, once the market price comes back up, how fast can you deliver it?
A salt cavern is a pressure vessel made of a completely impermeable material that’s not going to corrode, leak, or rust… and you can make them far larger, for far lower cost, than equivalent steel vessels, and store the LPG at a very high pressure. (Also, you get taxed on surface footprint, not subsurface, so the vessel size doesn’t come with an incredible construction footprint and ongoing tax cost). As a result of the high pressure, it comes back out quickly when you want to turn it into a deliverable.
After that overview, it gets complicated, including water rights for the brine creation and processing in a place where water rights are the subject of multi-generational lawsuits.
A natural gas pipeline was built in 2004-2005 between Roseburg and Coos Bay but I didn’t know that it never went into operation. Now you’ve got me curious.
In 2007 a Canadian energy company proposed an LNG import terminal in Cos Bay, with a 234 mile, 36″ pipeline connecting to existing pipelines in eastern Oregon. They gave up on this after a few years, then renewed the idea as an export terminal. They intended to use eminent domain to secure the pipeline alignment, plus the terminal would be built on basically sand, in an earthquake zone. The idea was dropped in 2021 after lots of local resistance.
The newest idea is an intermodal terminal which would unload container ships onto rail cars. Coos Bay is the only deep-water port between San Francisco and Portland, and has a rail line inland to Eugene where it connects to the national rail system. The short line was built to support the local timber industry and needs lots of upgrades to bridges and tunnels, but that’s a small cost compared to the terminal. Coos Bay, and the entire county, have been economically depressed since timber took a dive in the 80’s. Personally I like the idea. Lots of construction jobs, then lots of jobs to operate it. The only downside I see is that it’ll continue to drive up housing costs.
The project has lots of support at the state and federal level, and the state legislature is putting up $100 million to get things going, so it’s looking likely.
“… the city risks perpetuating the very illicit markets it seeks to eliminate.”
—–
Indeed. Prohibition, anyone?
Gaza as a resort? Call me a skeptic. Southwest Asia wins again.
“Gaz-A-Lago”…has a nice ring to it.
“Business” is a list of evidence for how USA does not have a free market, but rather it has central planning where some rulers have decided to destroy things that work for some reason. You still have the opportunity to write-in votes for only paleoconservatives in the midterms, and vote your way out of socialism. But, I expect the election results will show most Americans prefer the Democrat wolf.
* “In San Francisco, a mounting housing crisis”
I have a friend who works for Nvidia. Interestingly enough they don’t get annual raises, they get shares in Nvidia. He’s literally a millionaire. To think I knew him as a kid. He is paying a ton of money for rent, like three and a half thousand a month for a house like his dad and I live in. Three bedroom ranch. The landlord said that he has to be out in 60 days and he has the option to buy because the landlord needs the money. He was offeredthree and a half million as a purchase price .
In contrast, in 1984 my house was on the market for 60 and I talked to him down to 48 with a VA loan. It’s now valued at 250.
Granted, I’ve made quite a few upgrades.
It’s virtually the same house that they’re asking 3 and 1/2 million four in San Francisco.
* ** Yachting with EdB.
I hate when I forget to put the plug back in the bottom of the hull.
Fortunately I’ve learned to have one of the biggest bilge pumps on the market that’s still run at 12 volts. 1150 gallons a minute.
* “It isn’t about deploying the National Guard. The problem is democrats suck at basic governance in a manner that invites violence and chaos.”
Pritzger, Johnson, every blue state governor and mayor does not want to have Trump demonstrate the wrongness of their position in their communities.
Muriel Bower had no choice and now she is supporting Trump. Not a bad move. It’s a choice the others can’t seem to make.
Californian’s get what they elect (or more accurately, elect those who count the votes). COL out there is ridiculous, anyone willingly paying anything over half a million for a simple 1970’s bi-level type home is out of their minds. Have a distant cousin who works for a TV show as a producer or some such thing only LA folks know about…paid 1.3 million for a 900 sq ft bungalow. Add to that the homeowners insurance being insane (only to be told “tough darts” when a ‘no available water’ unchecked fire comes thru and they try to rebuild).
–
Yachting- My thought as well, someone forgot to install the hull plugs.
I wouldn’t be surprised if what they’re most scared of is not Trump enforcing basic governance, nor the exposure and stoppage of so much of the grift… but the National Guard ensuring free and fair elections, and the game that keeps ’em in power and money being up. Midterms are, politically speaking, just around the corner.
X2
👌
I’m still amazed with sold our little place in Long Beach for $750k eight years ago.
I appreciate your report on Iraq and it makes me think that maybe the right decision was made by Bush for all the wrong reasons.
If we believe it’s in our national interest for all the treasure both gold and blood that were spent.
In este pais hoy “Jaguar” se pronuncia HAH-gwahr.
way, way, way far out in left field:
is it possible that area around Holbrook is a former, very early, very deep crater in which some prehistoric sea evaporated?
Qatar and Kuwait both suck this time of the year… sigh… Re business, but that is HOW they ‘justify’ their big salaries and golden parachutes (which they will need shortly). I really wish they hadn’t publicised sinking the TDA drug runner. I’d have just let it ‘disappear’ and leave them wondering… Travel safe, and be careful in London. Say hi to LSP for us!
Dem Run (into the ground) Cities: This guy just defined what the Democrats stand for…Senator Tim Kaine (‘member him?) just got done telling the Congress that “individual rights come from government and laws rather than from The Creator.” Apparently he hasn’t read the Bill of Rights. Then the – many in poor health themselves – Demonrats in Congress actually screaming and lying to and about RFKjr in a finance hearing…because he is interfering with their Big Pharma gravy train…with all of them actually demanding people – especially kids – get injections and gender-twisting drugs, vociferously fighting what he wants: to warn people about actual science that WTP have been lied to for decades.
Evil has their brains.
https://www.lifezette.com/2025/09/radical-virginia-democrat-claims-rights-dont-come-from-god-but-from-government-watch/
Oy…*….Declaration of Independence and The Bill of Rights”.
That will be included in an upcoming blog post.
Guy should be tossed from Congress…Cruz set him straight but the coward had left by then. Scary part is he got reelected by Virginia voters (in theory anyway).
Communists are everywhere, including…especially…the Senate.
We expect, LL, an ivory handled saber, of course.
Perhaps a frock coat? Gordon-style.
https://en.wikipedia.org/wiki/Detroit_salt_mine