Brandon Donnelly — Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly. — Page 539

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I just discovered a new alliance of non-partisan, non-profit resident and ratepayer groups in the Greater Toronto Area that have come together in opposition of what they see as "unregulated overdevelopment and the lack of sensible growth vision for the GTA." If you'd like to read through their public letter to the Premier of Ontario, Doug Ford, you can do that over here .

In it you will learn that the Toronto region is vying desperately for the title of the most densely populated place on earth by trying to compete with already established locales like the slums of Mumbai and Monk Kok in Hong Kong. One has to admire ambition.

But what is not clear to me is what exactly "sensible, balanced, affordable, and livable developments" should look like. Should we quash our low-rise "Neighbourhood" designations (the majority of our land area) and instead blanket the region with mid-rise buildings similar to Paris? This is one option and, by the way, Paris is far denser than Toronto (relevant reading here and here ).

Or should we maintain our low-rise "Neighbourhoods" exactly as they are and simply reduce overall housing supply by limiting height and/or density at our transit stations? Is this the ask? I'm not sure. But this is a good question for city builders: What should sensible, balanced, affordable, and livable development look like? Is the 33-storey building that I live in sensible?

In Matt Levine's latest Money Stuff newsletter he talks about how money is really just a social construct. In his words, money is "a way to keep track of what society thinks you deserve in terms of goods and services."

But over the years, we have learned that it can be manipulated through the actions of central banks and other authorities. This, he argues, has become more obvious in the last 15 or so years. Which is one of the reasons why people continue to argue that cryptocurrencies are both a good thing and something we need more of.

Crypto is neutral, or at least that is the intent. But at the same time, it too remains a social construct. Cryptocurrencies have value because that is what we have collectively decided to layer on top of their math-based blockchains -- a global market cap of nearly $2 trillion.

Ironically, the more value we ascribe to them the less neutral they are likely to become. Because the more they ingratiate themselves into mainstream society, the more likely they are to get regulated. But Matt's overarching argument is that this is in fact a good thing.

Monies exist through webs of interdependencies that generally keeps us all in check by encouraging "prosocial behavior." So the fact that authorities can intervene, when needed, isn't a bug, it is a feature. It means that when you clearly misbehave, the world can punish you by doing things like freezing your foreign reserves .

I spent much of this morning reading about and listening to discussions about what's happening in Ukraine and so, instead of a typical post this morning, I'm just going to share a mélange of links.

• Monocle 24 Foreign Desk episode talking about Russia's invasion of Ukraine. Speakers are Ukrainian MP Lesia Vasylenko, former NATO chief Richard Shirreff, Russian journalist Ekaterina Kotrikadze, and Russia expert Mark Galeotti. I found this helpful in better understanding some of the dynamics at play here and what might happen going forward -- though, of course, who knows. All of this is both deeply sad and frustrating. [ Link ]

• Discussion in Bloomberg Green about the feasibility of the EU shutting off Russian gas right now, as opposed to through a protracted transition. Currently, the EU satisfies about 20% of its total energy needs through gas and about 40% of it comes from Russia. [ Link ] Also, a chart showing Russian natural gas exports, by destination. [ Link ]

• Warren Buffet published his widely read annual letter to Berkshire Hathaway shareholders this weekend. He likes to deliver news like this on a Saturday so that people have time to digest it before the markets reopen on Monday. The overall message was one that we have heard before: BH has a lot of cash (~$144 billion to be exact) and they're not finding very many compelling opportunities in which to deploy it. [ Link ]

• To add to the above, here is a longish Q&A session with Buffet's partner, Charlie Munger. He continues to be worried about excess money in the system and high inflation. [ Link ]

• Construction has been recently completed on a Mies van der Rohe design from 1952 that had been forgotten and buried in some archives. Originally commissioned to be a fraternity house at Indiana University, the building is now the Eskenazi School of Art, Architecture + Design. This is a supremely cool story, particularly for an architecture school. [ Link ]

• Yet another simple example by Bobby Fijan on how highly restrictive zoning codes and design guidelines don't always produce the end results that we might want. Different times and different contexts in this example. But it's interesting to think about how best to promote design excellence in our cites. Is more creative market freedom the answer? [ Link ]

• My friend Randy Gladman, who is senior vice-president of development advisory at Colliers here in Toronto, published an opinion piece in the Financial Post last week about the hidden costs of inclusionary zoning. It is consistent with the ad nauseam discussions that we have been having on this blog for the past few years, but it of course remains an important read. [ Link ]

• Steve Pomeroy of Focus Consulting makes an argument in the Globe and Mail that elevated home prices in Canada isn't primarily the result of a supply deficit. Using recent census data that allegedly shows that housing supply in Vancouver actually kept pace with demand (over how long of a period?), Pomeroy instead points to the other typical culprits: strong demand, low interest rates, unused homes owned by non-residents, and so on. This one likely deserves a dedicated post at some point. [ Link ]

Ironically, the post turned out to be wordier than my usual ones.