2/12/03

LC030212

VAL ZAVALA>> TONIGHT ON LIFE AND TIMES --

JESS MARLOW>> A STORY THAT COULD CHANGE YOUR MIND ABOUT TAKING THE BUS, ESPECIALLY ONE THAT CAN SLICE THROUGH YOUR COMMUTING NIGHTMARES.

REX GEPHARDT>> THE TRAVEL TIME ON THIS ROUTE WAS TWO HOURS. WE CUT THIRTY MINUTES OFF OF THAT TRAVEL TIME. WE CUT TWENTY-FIVE PERCENT OFF OF THE TRAVEL TIME AND IT’S HUGE.

VAL>> AND THEN A LOOK AT THE SO-CALLED HOUSING BUBBLE. DOES IT REALLY EXIST AND WHAT MIGHT HAPPEN TO THE VALUE OF YOUR HOME IF THE BUBBLE BURSTS?

JESS>> PLUS, BEHIND THE SCENES AT A MUSEUM EXHIBIT WHERE THE ART IS IN THE MAKING.

VAL>> IT’S ALL STRAIGHT AHEAD ON TONIGHT’S LIFE AND TIMES.

LIFE AND TIMES IS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

AND THE CALIFORNIA ENDOWMENT
THE STATE'S LARGEST HEALTH FOUNDATION SUPPORTING ORGANIZATIONS THAT DIRECTLY IMPROVE THE HEALTH AND WELL-BEING OF CALIFORNIA'S DIVERSE COMMUNITIES. THE CALIFORNIA ENDOWMENT, A PARTNER FOR HEALTHIER COMMUNITIES.

VAL>> TONIGHT A BETTER WAY TO GET AROUND LOS ANGELES.

JESS>> THAT’S THE GOOD NEWS. THE BAD NEWS IS THAT IT’S A BUS, BUT DON’T LET ALL YOUR OLD PREJUDICES GET IN THE WAY OF WHAT MAY WELL BE A REAL SOLUTION TO L.A.’S TRAFFIC PROBLEMS. AS GAY YEE REPORTS, THIS BUS ISN’T LIKE THE ONES YOU MAY KNOW AND MAY DESPISE.

GAY YEE>> THOSE BIG RED AND WHITE BUSES SPINNING DOWN WILSHIRE ARE A BRIGHT SPOT IN L.A.’S MASS TRANSIT SYSTEM. LET’S FACE IT. IT’S NOT EASY TO GET FROM HERE TO THERE IN A PLACE LIKE LOS ANGELES, FIVE HUNDRED SQUARE MILES OF CITY AND A COUNTY THAT SPRAWLS OVER 34,000 SQUARE MILES. AND IF YOU THINK TRAFFIC IS BAD NOW, THINK WHAT IT WILL BE LIKE IN THE YEAR 2020 WHEN THE POPULATION IS EXPECTED TO HIT TWELVE MILLION.

MARTHA WELBORNE>> IT’S NOT ROCKET SCIENCE, SO WHY NOT DO IT? (LAUGHTER)

GAY YEE>> MARTHA WELBORNE IS AN ARCHITECT WHO DARES TO THINK DIFFERENTLY. WHEN SHE MOVED HERE FROM BACK EAST, SHE WAS STUNNED BY THE GRIDLOCK AND SHE WAS CONVINCED THE MULTI-BILLION DOLLAR SUBWAY SYSTEM OFFICIALS WERE PLANNING WAS NOT THE ONLY ANSWER. THEN SHE HEARD ABOUT A GREAT LOW-COST WAY PEOPLE GET AROUND IN THE CITY OF CURITIBA, BRAZIL.

MARTHA WELBORNE>> AND THERE ARE SOME REALLY SMART GUYS DOWN THERE, SOME GENIUSES, IF YOU ASK ME, WHO CAME UP WITH THIS IDEA OF WHY NOT USE A BUS AS IF IT’S LIGHT RAIL?

GAY YEE>> WELBORNE WANTED TO SHOW LOCAL DECISION-MAKERS A SYSTEM SHE BELIEVED WOULD WORK IN LOS ANGELES, SO SHE GOT A GRANT TO TAKE THEM TO SOUTH AMERICA. THEY WERE IMPRESSED.

RICHARD RIORDAN>> THE CURITIBA SYSTEM IS THE MOST EFFICIENT, MOST REASONABLY COSTING SYSTEM IN THE WORLD AND THE COST OF THIS SYSTEM IS ABOUT FIVE PERCENT PER MILE OF WHAT THE COST OF SUBWAY IS.

GAY YEE>> MANY MTA PLANNERS AGREED WITH WELBORNE’S ENTHUSIASM ABOUT CURITIBA’S ANSWER TO TRAFFIC CONGESTION. SOME OF THOSE SAME IDEAS ARE NOW ROLLING DOWN LOS ANGELES STREETS ON THE MTA’S METRO RAPID LINE. THE SERVICE STARTED IN JUNE 2000. SOME OF THE FEATURES IN CURITIBA’S SYSTEM WERE USED AS A BLUEPRINT, LIKE LOW-FLOORED BUSES.

REX GEPHARDT>> SEE, THE FRONT DOOR OF THE BUS IS RIGHT HERE IN THE CENTER AND THERE ARE NO STEPS TO GET ON THIS BUS. YOU JUST STEP UP AND YOU WALK RIGHT IN. THERE ARE NO STEPS TO GET ON, NO STEPS TO GET OFF, SO IT MAKES IT REAL FAST.

GAY YEE>> REX GEPHARDT IS THE PROJECT DIRECTOR. HE SAYS A COMPUTERIZED PRIORITY SYSTEM HELPS TO SPEED BUSES THROUGH INTERSECTIONS. HERE’S HOW IT WORKS. METRO RAPID BUSES ARE EQUIPPED WITH TRANSMITTERS THAT GO OFF EVERY TIME THEY GO OVER THESE LOOPS AT INTERSECTIONS ALONG THE ROUTES. THAT INFORMATION GOES BACK TO A COMPUTER AT MTA’S NERVE CENTER.

SEAN SKIEN>> THIS GIVES THE MTA AND THE ENGINEERS AN ABILITY TO MONITOR THE SYSTEM AND SEE EXACTLY WHAT IS HAPPENING. ARE BUSES GETTING BUNCHED UP? IS THE SYSTEM OPERATING PROPERLY?

GAY YEE>> SEAN SKIEN IS WITH THE CITY’S DEPARTMENT OF TRANSPORTATION. HE HELPED DESIGN THE SOFTWARE FOR THE SYSTEM, WHICH MAKES GREEN LIGHTS LONGER, RED LIGHTS SHORTER, SO METRO RAPID BUSES GO THROUGH TRAFFIC FASTER.

SEAN SKIEN>> SO WE TRY TO LOCATE THE STOPS AT THE MAJOR INTERSECTIONS AND TIME THE LIGHTS IN BETWEEN TO FACILITATE THE BUSES MOVING.

GAY YEE>> SO WHAT THE BUS DRIVER DOES IS TRY TO CATCH UP WITH THE TRAFFIC AND THEN HE’S ON THE TAIL END.

SEAN SKIEN>> HE COULD BE ON THE TAIL END OR, IN SOME CASES, HE’S ON THE FRONT END. THEN HE PULLS OUT RIGHT IN FRONT OF A PLATOON OF TRAFFIC AND HE’S BRINGING ALL THE GREEN LIGHTS UP RIGHT IN FRONT OF EVERYONE AND MOVES ALONG.

GAY YEE>> SO THE IDEA IS THE DRIVERS GET BEHIND A RAPID BUS (LAUGHTER).

SEAN SKIEN>> (LAUGHTER) OR AT LEAST UNTIL THE NEXT BUS STOP.

GAY YEE>> THEN THERE ARE SUBTLE WAYS TO SAVE TIME, LIKE BRANDING. ALL METRO RAPID BUSES ARE RED AND WHITE SO THEY’RE EASY TO SPOT, DESIGNATED STOP ZONES SO PASSENGERS KNOW EXACTLY WHERE THE BUS WILL COME TO A HALT, AND ELECTRONIC SIGNS THAT TELL PASSENGERS WHEN THE NEXT METRO RAPID WILL BE ARRIVING. ALL THESE THINGS SAVE A MINUTE HERE, A MINUTE THERE, BUT THEY ALL ADD UP.

REX GEPHARDT>> AND WHAT THIS HAS DONE, ALONG WITH FEWER STOPS AND A NEW WAY THAT WE OPERATE THE BUS, IS THAT WE’VE CUT THE TRAVEL TIME BY THIRTY PERCENT FOR THE PATRONS. SO THEIR TRIP IS THIRTY PERCENT FASTER THAN IT WAS BEFORE THE METRO RAPID BUS BECAUSE OF THIS CONCEPT OF TRYING TO GET BUSES THROUGH THE INTERSECTIONS MORE QUICKLY AND HAVING FEWER STOPS.

GAY YEE>> DOES IT WORK? THE PROOF IS IN THE RIDERSHIP.

>> IT’S BETTER THAN THE OTHER ONES BECAUSE IT’S MORE QUICKLY AND THIS IS THE MOST IMPORTANT THING.

>> I LIKE THEM A LOT. I GO FROM SANTA MONICA TO DOWNTOWN A LOT AND THEY RUN ABOUT HALF THE TIME OF TAKING SOMETHING LIKE BEFORE ON SANTA MONICA BOULEVARD. THEY ALSO RUN VERY FREQUENTLY, SO WHEN I GET OUT AT THE STOP, I’M READY TO GO. USUALLY IN TEN MINUTES, THERE’S ONE THERE AND I’M ON MY WAY, SO IT CUTS DOWN A LOT OF TIME FOR ME.

GAY YEE>> HERE ON WILSHIRE BOULEVARD, THE CITY’S MOST CONGESTED STREET, BUS RIDERSHIP HAS DOUBLED SINCE THE INTRODUCTION OF METRO RAPID. AND FOR MARTHA WELBORNE, THAT’S A BEAUTIFUL THING.

MARTHA WELBORNE>> SEEING PEOPLE ON THE BUSES, KNOWING THAT THEY ARE SO BUSY THAT WE NOW NEED TO BUY LONGER BUSES. IT IS WORKING. I MEAN, MY WHOLE GOAL WAS TO TRY TO HELP SOLVE THE PROBLEM AND IT SOLVED THE PROBLEM, OR IT SORT OF SOLVED THE PROBLEM (LAUGHTER). WE’RE NOT FINISHED. THE MOST GRATIFYING IS THAT PEOPLE EMBRACED IT AND, YOU KNOW, VOTED WITH THEIR FEET. THEY GOT RIGHT ON THE THING AND IT WORKED IMMEDIATELY.

JESS>> WE’RE JOINED NOW BY JAMES DE LA LOZA. HE IS THE MTA’S EXECUTIVE OFFICER FOR COUNTYWIDE PLANNING. HAS THIS SOLVED THE PROBLEM?

JAMES DE LA LOZA>> IT’S HELPED. IT’S CERTAINLY A GOOD STEP IN THE RIGHT DIRECTION. I THINK LOS ANGELES NEEDS TO INCREASE ITS RIDERSHIP ON PUBLIC TRANSPORTATION AND THIS IS REALLY AN AGGRESSIVE FIRST STEP.

VAL>> NOW THE QUESTION, OF COURSE, IS HOW MANY DO YOU HAVE OUT THERE? IS IT ONLY A TINY PERCENTAGE OF ALL THE BUSES AND WILL IT TAKE MANY, MANY YEARS TO CONVERT THEM ALL, OR WHAT'S THE PLAN?

JAMES DE LA LOZA>> WE HAVE AN AGGRESSIVE FIVE-YEAR PLAN TO PUT IN PLACE TWENTY-SIX LINES. WE CURRENTLY HAVE FOUR OPERATING. WE WILL HAVE ANOTHER TWO OPENING IN JUNE AND, EVERY SIX MONTHS, TWO LINES WILL OPEN UP OVER THE NEXT FIVE YEARS, SO WE'LL HAVE THE ENTIRE SYSTEM OF TWENTY-SIX LINES. THIS WILL BE COUNTYWIDE THROUGH THIRTY-FOUR CITIES AND UNINCORPORATED COUNTIES.

VAL>> SO EVENTUALLY, THE ENTIRE BUS SYSTEM WILL BE THIS TECHNOLOGY, RAPID BUS?

JAMES DE LA LOZA>> NO. APPROXIMATELY A THIRD WILL BE THIS RAPID BUS. WE STILL THINK IT'S IMPORTANT TO HAVE LOCAL BUSES BECAUSE A LOT OF PEOPLE TAKE LOCAL BUSES TO LOCAL DESTINATIONS.

JESS>> THIS, IN EFFECT, IS AN EXPRESS SYSTEM?

JAMES DE LA LOZA>> CORRECT. LIMITED STOP SERVICE, RE-ENGINEERING OF THE LIMITED STOP SERVICE OR EXPRESS SERVICE THAT WE HAVE.

JESS>> YOU'VE BEEN UNDER GREAT PRESSURE AT THE MTA, AND COURT-ORDERED PRESSURE, BECAUSE OF THE NUMBER OF STANDEES ON SO MANY BUSES. IS THIS A RESPONSE TO THAT AND IS IT HELPING TO RESOLVE THAT PROBLEM? DOES IT SATISFY THE COURT ORDER?

JAMES DE LA LOZA>> I THINK THIS IS SOMETHING THAT BOTH THE MTA AND BUS DRIVERS UNIONS AGREE ON THAT WE SHOULD HAVE MORE OF. WE ANTICIPATE ACTUALLY INCREASING RIDERSHIP AND MAYBE HAVING MORE OF A CHALLENGE, BUT WHAT WE ARE DOING IS BRINGING IN LARGER ARTICULATED BUSES. THESE ARE BUSES THAT WILL INCREASE OUR CAPACITY BY ABOUT FIFTY PERCENT MORE SEATS, SO THAT WILL HELP. THOSE SHOULD BE COMING ON IN THE NEXT YEAR AND A HALF.

VAL>> WHEN YOU SAY, WHAT IS THAT TERM, ARTICULATED? DO YOU MEAN ADD --

JESS>> -- ONES THAT BEND IN THE MIDDLE.

VAL>> OH, THOSE THAT BEND IN THE MIDDLE? ACCORDION BUSES.

JAMES DE LA LOZA>> ACCORDION BUSES.

VAL>> SO THAT'S THE FUTURE OF LOS ANGELES?

JAMES DE LA LOZA>> WELL, THE FUTURE OF LOS ANGELES IS A SYSTEM THAT -- LOS ANGELES IS VERY COMPLICATED, VERY SPREAD OUT, BUT A GRID OF TRANSPORTATION OPTIONS FOR THE PUBLIC WILL GIVE THEM ANOTHER ALTERNATIVE TO DRIVING. I THINK AS YOU'VE SEEN, ONE IMPORTANT THING IS THAT A THIRD OF THE NEW RIDERSHIP WHICH, IN SOME CASES, ARE THIRTY OR FORTY PERCENT, ARE NEW RIDERS, PEOPLE WHO HAVE NEVER TAKEN PUBLIC TRANSPORTATION, SO WE ARE MAKING HEADWAY INTO THE DISCRETIONARY RIDER. WE WANT TO CONTINUE TO DO THAT HERE IN LOS ANGELES.

JESS>> BUT THERE'S AN INCREDIBLE CHALLENGE TO DO THIS ECONOMICALLY. WE BUILT THE SUBWAY, WHICH WAS EXTREMELY COSTLY, SOME SAY EXCESSIVE COSTLY. WE'RE NOW ENGAGED IN LIGHT RAIL. THE PASADENA LINE IS GETTING READY TO OPEN THIS SUMMER, WE UNDERSTAND. BUT THE BUS RIDERS ARE SAYING WE'RE THE ONES WHO GOT SHORT-CHANGED. DO YOU AGREE WITH THAT?

JAMES DE LA LOZA>> NO, I DON'T. I THINK THAT, IN LOS ANGELES, YOU NEED A MULTI-MOBILE TRANSPORTATION SYSTEM. RIGHT NOW, IT ISN'T ABOUT BUS VERSUS RAIL. WE REALLY NEED ALL OF THEM. WHAT WE NEED TO PUT IN PLACE IS A SHORT-TERM SOLUTION THAT FIXES UP THE BUS SYSTEM AND GIVES YOU A GOOD OPTION. THE LONG-TERM SOLUTION IS EXPANSION OF THE RAIL SYSTEM, BUT FIRST LET'S FOCUS ON THE BUS SYSTEM BECAUSE IT IS THE MAJORITY OF OUR RIDERSHIP NOW.

JESS>> AND IT'S DOABLE?

JAMES DE LA LOZA>> AND IT'S DOABLE.

VAL>> NOW THIS WILL NOT AFFECT FREEWAY TRAFFIC? THIS IS JUST SURFACE WITHIN LOS ANGELES COUNTY OR DO YOU SEE IT HAVING AN IMPACT ON THE FREEWAYS?

JAMES DE LA LOZA>> IT WILL HAVE AN IMPACT ON FREEWAYS. THE MORE PEOPLE WE CAN GET OFF THEIR CARS, THE LESS CONGESTION THERE IS ON FREEWAYS, SO THERE IS A RELATIONSHIP THERE. WE NEED TO, AGAIN, ENTICE PEOPLE TO TAKE PUBLIC TRANSPORTATION AS AN OPTION TO SITTING ON THE FREEWAY. WE'VE DONE IT SUCCESSFULLY WITH THE RED LINE TO NORTH HOLLYWOOD. THAT'S HAD AN IMPACT. WE NEED TO PROVIDE MORE OPTIONS. THE MORE PEOPLE YOU GET IN FEWER VEHICLES, THE LESS CONGESTION THERE IS.

JESS>> NICE TO HEAR A TRANSPORTATION SUCCESS STORY.

VAL>> IT IS.

JESS>> OUR THANKS TO JAMES DE LA LOZA FROM THE METROPOLITAN TRANSIT AUTHORITY.

VAL>> TOMORROW ON LIFE AND TIMES, THE GANGS OF LOS ANGELES. YOU CAN'T FIND THEM UNTIL YOU UNDERSTAND THEM. THAT'S WHY THE POLICE CHIEF, CIVIL RIGHTS ATTORNEYS AND FORMER GANG MEMBERS ARE GATHERING TO MAP OUT A NEW STRATEGY AND WE'LL HAVE THE DETAILS ON WHAT THEY'RE PLANNING, TOMORROW ON LIFE AND TIMES.

JESS>> IT'S A HOT TOPIC MOST EVERYWHERE YOU GO IN SOUTHERN CALIFORNIA: SOARING HOME PRICES THAT, IN SOME CASES, HAVE REACHED RECORD HIGHS. IT'S GREAT FOR HOMEOWNERS SINCE THEY WATCH THOSE VALUES CLIMB. NOT SO GREAT FOR THOSE WHO WANT TO BUY A HOME AND ARE LOOKING FOR A BARGAIN. THE BIG QUESTION: ARE THOSE SOARING PRICES PART OF A HOUSING BUBBLE, A BUBBLE THAT MIGHT BURST SOMETIME IN THE NEAR FUTURE?

VAL>> THAT'S THE QUESTION WE'RE PUTTING TO OUR NEXT GUEST. HE IS RAPHAEL BOSTIC, AN ECONOMIST AT USC'S SCHOOL OF POLICY PLANNING AND DEVELOPMENT. WELCOME TO LIFE AND TIMES.

RAPHAEL BOSTIC>> GOOD TO BE HERE.

JESS>> MR. BOSTIC, FIRST OF ALL, ARE WE IN A REAL ESTATE BUBBLE?

RAPHAEL BOSTIC>> I DON'T THINK SO. I THINK THAT WHAT PEOPLE ARE CONCERNED ABOUT IS REALLY HOUSE PRICES FALLING. THAT MAY HAPPEN, BUT IT WILL NOT HAPPEN BECAUSE OF SPECULATION IN THE MARKETPLACE OR HYSTERIA IN THE MARKET, WHICH IS REALLY WHAT WE'RE TALKING ABOUT WHEN WE TALK ABOUT A BUBBLE. IF PRICES GO DOWN, IT WILL BE BECAUSE THE ECONOMIC CONDITIONS DETERIORATE SIGNIFICANTLY SUCH THAT DEMANDS FOR HOUSING GO --

JESS>> -- BUT PRICES HAVE SOARED.

RAPHAEL BOSTIC>> PRICES HAVE SOARED AND IT'S BEEN FOR TWO REASONS IN SOUTHERN CALIFORNIA. THE FIRST IS THAT THE ECONOMY HERE HAS BEEN FANTASTIC FOR THE LAST COUPLE OF YEARS, EVEN THROUGH THE RECESSION. THIS ECONOMY HAS BEEN AS POWERFUL AN ECONOMY AS ANY IN THE COUNTRY, SO THAT HAS KEPT DEMAND FROM FALLING TOO MUCH IN THE HOUSING MARKET. THE SECOND IS THAT THERE'S JUST NOT A LOT OF NEW SUPPLY GOING UP. IT'S VERY HARD, AS YOU KNOW, TO BUILD NEW HOUSES IN SOUTHERN CALIFORNIA AND, BECAUSE OF THAT, WE WIND UP WITH SUPPLY BEING FIXED, DEMAND GOING UP, AND PRICES HAVE GOT TO GO UP.

VAL>> AND PEOPLE POURING IN HERE ALL THE TIME. SO, IN OTHER WORDS, WHEN YOU AS AN ECONOMIST SAY IS THIS A BUBBLE OR NOT, YOU LOOK AT VERY SPECIFIC CRITERIA, CORRECT?

RAPHAEL BOSTIC>> THAT'S CORRECT.

VAL>> ONE OF THEM BEING, WHAT, THE HYSTERIA AROUND BUYING AND PEOPLE --

RAPHAEL BOSTIC>> -- RIGHT. IF YOU TAKE THE TECH BUBBLE, FOR EXAMPLE, THE --

VAL>> -- THE HIGH-TECH? SILICON VALLEY?

RAPHAEL BOSTIC>> THE HIGH-TECH BUBBLE IN 2000.

JESS>> THAT'S FRIGHTENING.

RAPHAEL BOSTIC>> THAT WAS A LITTLE DISTURBING, BUT IT WAS A SITUATION WHERE THE BASIC CONDITIONS IN THE MARKET DIDN'T CHANGE FROM ONE DAY OR ANOTHER. PEOPLE JUST DECIDED THAT THEY WEREN'T GOING TO KEEP INVESTING IN COMPANIES THAT HAD NOT GIVEN THEM RETURNS, SO IT WAS --

VAL>> -- IT WAS A VERY ALMOST EMOTIONAL OR PSYCHOLOGICAL --

RAPHAEL BOSTIC>> -- IT WAS A PSYCHE TO IT THAT REALLY LED TO THE DECLINE IN PRICES. IN HOUSING, YOU DON'T HAVE THAT SAME SORT OF PSYCHE. FIRST OF ALL, PEOPLE DON'T REALLY BUY HOUSES AS A SPECULATIVE TOOL. MOST HOUSING IS PURCHASED OR SOLD TO LIVE IN. WE WANT TO CONSUME THE HOUSE. SO IT'S A VERY DIFFERENT MARKET AND IT'S NOT REALLY APPROPRIATE TO DRAW COMPARISONS BETWEEN THE TWO.

JESS>> TO WHAT DEGREE ARE THE EXTRAORDINARILY LOW INTEREST RATES FUELING THIS MARKET?

RAPHAEL BOSTIC>> THAT IS A VERY IMPORTANT POINT. LOW INTEREST RATES HAVE MADE MORTGAGE PAYMENTS AFFORDABLE FOR HOUSES THAT ARE HIGH-PRICED, SO IF YOU FACTOR IN THE INTEREST RATE INTO MORTGAGE RATES, MORTGAGE RATES FOR MOST HOUSEHOLDS NOW ARE ONLY SEVENTY PERCENT OF WHAT THEY WERE TEN YEARS AGO. SO FOR THE AVERAGE HOUSEHOLD IN THIS MARKETPLACE, IT'S JUST MUCH EASIER FOR THEM TO CARRY A MORTGAGE AND BUY A HOUSE.

VAL>> NOW WHAT DO YOU SAY TO PEOPLE WHO DON'T OWN HOMES. THEY WOULD LOVE TO GET IN AND THEY'RE SAYING TO THEMSELVES THAT PRICES HAVE GOT TO COME DOWN BECAUSE NOBODY CAN AFFORD THESE ANYMORE? YOU KNOW, EVEN IF YOU GO TO COLLEGE, YOU HAVE A DECENT SALARY, YOU STILL CAN'T AFFORD THE AVERAGE HOME HERE, SO THEREFORE PRICES HAVE TO COME DOWN BECAUSE NOBODY CAN AFFORD THEM. IS THAT AN ACTUAL SOUND ECONOMIC PRINCIPLE OR NOT?

RAPHAEL BOSTIC>> IN PRINCIPLE, THAT'S RIGHT. I MEAN, THE PROBLEM IS THAT PRICES WILL FALL WHEN DEMAND FALLS A LOT. SO THE QUESTION THAT YOU HAVE TO THINK ABOUT IS, WELL, WHO ARE THE PEOPLE WHO ARE DEMANDING THESE HOUSES? WHAT ARE THE INCOMES ASSOCIATED WITH THEIR JOBS? AND AS LONG AS YOU HAVE AN ECONOMY WHERE YOU HAVE SOME HIGH-PAYING JOBS AND PEOPLE ARE ABLE TO LIVE FAIRLY COMFORTABLY AND BE RELATIVELY AFFLUENT, PRICES ARE NOT GOING TO FALL APPRECIABLY.

JESS>> THE FLIP SIDE OF THAT, THOUGH, IS AN ECONOMY THAT IS SOMEWHAT THREATENED PARTICULARLY AS WE LOOK AT THE POSSIBILITY, IF NOT THE LIKELIHOOD, OF WAR. IF THE ECONOMY GETS THAT SOUR, THE REAL ESTATE MARKET HAS GOT TO GO DOWN TOO, DOESN'T IT?

RAPHAEL BOSTIC>> ABSOLUTELY. I MEAN, THERE IS A LOT OF UNCERTAINTY IN THE MARKETPLACE RIGHT NOW. PEOPLE COULD DECIDE THAT, YOU KNOW, WE'VE GOT TO CHECK OUT OF THIS MARKET, THIS ECONOMY, AND THE ECONOMY COULD REALLY SUFFER. IF THAT HAPPENED, HOUSING PRICES CAN FALL, BUT I WOULD NOT CALL THAT A BUBBLE. I WOULD SAY THAT'S ECONOMIC CONDITIONS CHANGING IN SUCH A WAY THAT HOUSING PRICES HAVE GOT TO COME OFF OF THE LEVELS THAT THEY'RE AT RIGHT NOW.

VAL>> WHAT CAN WE DO, YOU KNOW, WHETHER IT BE PLANNERS ON A COUNTY OR CITY LEVEL OR STATE LEVEL, TO MAKE HOUSING MORE AFFORDABLE, TO GET MORE HOUSING BUILT? I MEAN, IT IS GETTING TO THE POINT WHERE IT'S TRULY TEARING APART THE SOCIAL FABRIC, THOSE WHO OWN HOMES AND THOSE WHO DON'T.

RAPHAEL BOSTIC>> RIGHT, SO THERE ARE A COUPLE OF POINTS THERE. THE FIRST IS THAT, IF PRICES KEEP GOING UP, WE WILL, AS A REGION, START TO FEEL IT IN TERMS OF COMPETITIVENESS AND THAT WILL IMPACT THE TYPES OF JOBS WE CAN ATTRACT TO THIS REGION. IN TERMS OF WHAT DO WE DO TO TRY TO EASE OFF THE HIGH RATE OF APPRECIATION, WE'VE GOT TO INCREASE SUPPLY AND THAT CAN HAPPEN IN ONE OF TWO WAYS. YOU CAN EITHER BUILD MORE ON THE FRINGE. THAT WOULD BE THINGS LIKE AHMANSON RANCH AND OTHER TYPES OF DEVELOPMENTS THAT ARE FINDING A LOT OF OPPOSITION. THEN THE OTHER THING IS TO DEVELOP INFILL HOUSING, TO BUILD MORE IN PLACES THAT ALREADY HAVE A LOT OF DEVELOPMENT.

VAL>> EVERY LITTLE VACANT LOT, EVERY LITTLE BLOCK.

RAPHAEL BOSTIC>> EXACTLY. WHAT THAT WILL REQUIRE, THOUGH, IS A COMMITMENT TO INCREASE DENSITIES. IF COMMUNITIES ARE WILLING TO ACCEPT THE FACT THAT WE'VE GOT TO INCREASE THE DENSITIES, THAT CAN GO A LONG WAY TOWARD ALLEVIATING THE SUPPLY PRICES THAT WE HAVE RIGHT NOW. BUT I SHOULD SAY, WE'RE NOT SEEING A LOT OF COMMUNITIES VOTING TO INCREASE DENSITIES --

VAL>> -- QUITE THE OPPOSITE.

RAPHAEL BOSTIC>> SO THIS IS A REAL CHALLENGE THAT THE REGION IS GOING TO FACE.

JESS>> AS YOU NOTED AT THE BEGINNING, MOST PEOPLE BUY REAL ESTATE TO LIVE IN, TO OCCUPY, TO CONSUME, AND YET WITH THE STOCK MARKET IN THE DECLINE IT'S BEEN IN IN THE LAST YEAR OR SO, PEOPLE ARE BEING ENCOURAGED TO INVEST IN REAL ESTATE. IS THAT GOING TO AFFECT THE MARKET SUBSTANTIALLY?

RAPHAEL BOSTIC>> NOT SUBSTANTIALLY. I MEAN, IF YOU LOOK AT THE DATA ON TRANSACTIONS, ONLY ABOUT FIVE TO TEN PERCENT OF TRANSACTIONS IN ANY GIVEN YEAR ARE FOR INVESTMENT PURPOSES. SO WHEN WE TALK ABOUT THE INVESTMENT MOTIVE, IT'S REALLY JUST A SMALL SEGMENT OF THE MARKETPLACE AND THAT SMALL A SEGMENT IS NOT LIKELY TO BE ABLE TO DRIVE LARGE TRENDS.

VAL>> PROFESSOR RAPHAEL BOSTIC FROM USC, THANK YOU SO MUCH FOR FINALLY SETTLING THAT QUESTION. IT IS NOT A BUBBLE. THANK YOU.

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LIFE AND TIMES
4401 SUNSET BLVD.
LOS ANGELES, CALIFORNIA 90027

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JESS>> IMAGINE THAT YOU WALK INTO AN ART MUSEUM WHERE YOU CAN PLUNGE YOUR HANDS INTO A MOUNTAIN OF CLAY AND MAKE YOUR OWN SCULPTURE. IT'S JUST ONE OF THE MANY EXPERIMENTS VISITORS CAN NOW TAKE PART IN AT A NEW ART EXHIBIT CALLED "LACMA LAB".

VAL>> LACMA, LOS ANGELES COUNTY MUSEUM OF ART, IS BREAKING ALL THE OLD RULES. IT'S CREATED A SPECIAL EXHIBIT WHERE ADULTS AND KIDS CAN PAINT, DRAW, TOUCH AND EVEN CLIMB. AND AS VICKI CURRY SHOWS US, IT'S A NOISY PLACE WHERE CREATIVITY RULES.

VICKI CURRY>> NO ONE EVER SAID THAT A TRIP TO THE ART MUSEUM HAS TO BE BORING, ESPECIALLY WHEN THE ART MUSEUM SEEMS MORE LIKE A PLAYGROUND.

[FILM CLIP]

VICKI CURRY>> THIS VERY SPECIAL EXHIBIT IS AN EXPERIMENT PUT TOGETHER BY THE LOS ANGELES COUNTY MUSEUM OF ART. IT'S CALLED "LACMA LAB".

ROBERT SAIN>> WE'RE IN THE BUSINESS OF INVESTIGATING NEW MODELS FOR PRESENTING ART AND ENGAGING AUDIENCES. WE TAKE THIS APPROACH CALLED "AGE-FREE" TO BRING ARTISTS IN TO DO PROJECTS THAT EQUALLY ENGAGE A CHILD AND AN ADULT.

VICKI CURRY>> THE APPROACH HERE IS TOTALLY NONTRADITIONAL. INSTEAD OF THE USUAL DISPLAY OF ART ON THE WALLS, LACMA LAB PRESENTS WORKS THEY CALL PARTICIPATORY.

ROBERT SAIN>> IF YOU HAVE AN EXPERIENCE THAT MATTERS, THAT'S THE BEGINNING OF TRUE LEARNING. FOR US, WE WOULD CONSIDER IT A HOMERUN IF PARENTS AND CHILDREN HAD AN ARGUMENT AT THE DINNER TABLE OVER WHAT THEY EXPERIENCED HERE.

VICKI CURRY>> BUT JUST BECAUSE IT'S FUN DOESN'T MEAN THIS ISN'T A SERIOUS MUSEUM. LACMA LAB HAS COMMISSIONED OVER TWENTY WORKING ARTISTS TO CREATE PIECES FOR PREVIOUS EXHIBITIONS. FOR THIS SHOW, THEY TURNED TO THE NEXT GENERATION OF LOS ANGELES ARTISTS AND ASKED THE STUDENTS OF FOUR LOCAL ART SCHOOLS TO INVESTIGATE THE PROCESS OF MAKING ART. THE EXHIBIT IS APTLY TITLED "MAKING".

TIMOTHY TOMPKINS>> THESE LITTLE MOMENTS THAT PEOPLE DON'T REALLY THINK ABOUT, I THINK, ARE VERY IMPORTANT AND ART-MAKING, HOW ACTIVITIES CAUSE THE CREATION PROCESS IN SOMEBODY TO MAKE ART.

VICKI CURRY>> THE TEAM FROM THE OTIS COLLEGE OF ART AND DESIGN DECIDED TO EXPLORE HOW THE ENVIRONMENT INFLUENCES AN ARTIST. THEIR PROJECT INCLUDES THREE PODS FOR SIGHT, SMELL AND SOUND.

JACOB MELCHI>> IT'S A PLACE FOR KIDS TO COME AND MAKE NOISE AND THIS NOISE IS FUNNELED INTO THE FAN ROOM.

VICKI CURRY>> AND IN THE FAN ROOM, VISITORS CAN TOSS AROUND DIFFERENT OBJECTS LIKE STYROFOAM SNOWBALLS AND PAPER LEAVES REPRESENTING THE DIFFERENT SEASONS. STUDENTS FROM UCLA SCHOOL OF THE ARTS AND ARCHITECTURE DECIDED THE PROCESS OF MAKING ART ALSO INCLUDES THROWING THINGS AWAY UNTIL A FINAL PIECE IS CREATED.

VANESSA CONTE>> WE THOUGHT THAT GIVING SOMETHING UP TO A LARGER WHOLE WOULD BE PROBABLY THE MOST IMPORTANT THING AND JUST THE IDEA OF THROWING AWAY AND STARTING AGAIN OR LETTING GO OF IDEAS AND CREATING SOMETHING OVER TIME.

VICKI CURRY>> THEY BUILT A LARGE CONTAINER THAT ACTS SOMEWHAT LIKE A GARBAGE CAN. VISITORS CAN RUN THINGS THROUGH A SHREDDER, PLACE THEM ON A LAZY SUSAN, OR TOSS THEM OVER THE SIDE. AS MORE THINGS ARE DISCARDED INTO THE CONTAINER, A NEW, LARGER COLLABORATIVE PIECE IS CREATED.

VANESSA CONTE>> AT THE OPENING, IT WAS COMPLETELY EMPTY AND ALL OF US FROM UCLA AND A BUNCH OF THE OTHER SCHOOLS THREW LIKE OUR WORK IN. PERIODICALLY, I'VE COME IN HERE AND EMPTIED MY STUDIO.

VICKI CURRY>> THE TEAM FROM THE ART CENTER COLLEGE OF DESIGN FOCUSED ON THE USE OF RAW MATERIALS.

SOUTHER SALAZAR>> WE WANTED TO REALLY ADDRESS THIS LIKE THE PURE, JUST LIKE JOYFUL, LIKE CENTRAL ASPECTS OF MAKING IN ITS LIKE BOILED-DOWN FORM.

VICKI CURRY>> THEY BUILT A MOUNTAIN OF CLAY THAT CHANGES OVER TIME AS VISITORS TAKE PIECES OF IT AWAY TO MAKE THEIR OWN ART.

SOUTHER SALAZAR>> AND THIS IS A REAL SURPRISE BECAUSE WE HAD NO IDEA THAT IT WAS JUST GOING TO EXPLODE LIKE THIS. THE CLAY JUST JUMPS UP ONTO THE WALLS AND ALL THIS GRAFFITI HAPPENS.

VICKI CURRY>> IN A SECOND AREA, VISITORS CAN WRITE OR DRAW ON BLANK POSTCARDS AND THEN ADD THEM TO A GROWING DISPLAY.

SOUTHER SALAZAR>> IT WAS COMPLETELY BARE AND, WITHIN JUST A COUPLE OF DAYS, THIS WAS FULL OF DRAWINGS. IT'S VERY EXCITING.

[FILM CLIP]

VICKI CURRY>> THIS PROJECT CREATED BY STUDENTS FROM THE CALIFORNIA INSTITUTE OF THE ARTS IS CALLED "WEEDS".

LARA NEWSOM>> WE WERE REALLY TRYING TO THINK OF A PROJECT THAT INVOLVES MAKING, THAT INVOLVES LEARNING AS WELL.

VICKI CURRY>> THE PROJECT EQUATES WEEDS WITH THINGS THAT ARE THROWN AWAY. THEY ASKED THE VISITOR TO TAKE MATERIALS ONCE CONSIDERED TO BE TRASH AND TRANSFORM THEM INTO ART. THOSE PIECES ARE THEN DISPLAYED IN A FULL-SIZE GREENHOUSE MADE OF OLD WATER BOTTLES.

LARA NEWSOM>> WE ENCOURAGE THE KIDS TO DO WHAT THEY WANT. IF THEY WANT TO LEAVE THEM HERE TO SHOW OFF, THAT'S GREAT. AND IF THEY WANT TO TAKE THEM HOME AND GIVE THEM TO SOMEONE THEY CARE ABOUT OR KEEP IT FOR THEMSELVES, THAT'S GREAT TOO.

VICKI CURRY>> ALL THE INSTALLATIONS IN THIS EXHIBIT INVOLVE THE VISITOR IN THE MAKING OF ART, BUT AT THE SAME TIME, THE YOUNG ARTISTS WHO CREATED THESE WORKS EXCEEDED THEIR OWN UNDERSTANDING OF HOW AN IDEA IS TURNED INTO ART.

LARA NEWSOM>> REALLY WHAT I LEARNED THE MOST FROM THIS PROJECT IS THAT I CAN THINK BIG. IT WAS NICE TO SEE THAT THESE THINGS CAN HAPPEN AND KNOW THAT I COULD BE PART OF IT.

SOUTHER SALAZAR>> IT'S REALLY HARD TO JUST MAKE ART IN A VACUUM AND NOT HAVE TO WORRY ABOUT VENUES AND AN AUDIENCE. I THINK LIKE BEING ABLE TO WORK WITH PEOPLE AND TO KNOW LIKE HOW EVERYBODY CAN PERFORM THEIR FUNCTION IS REALLY GOOD. IT'S ENLIGHTENING.

VICKI CURRY>> THE METHODS OF THIS VERY UNCONVENTIONAL EXHIBIT ARE BEING ANALYZED BY YET ANOTHER GROUP OF STUDENTS. THEY'RE FROM THE MUSEUM STUDIES PROGRAM AT USC.

HEATHER JENO>> LIKE THE OTHER TEAMS, WE WERE COMMISSIONED TO DO A PROJECT AND OURS WAS TO TAKE A LOOK AT THE ACTUAL MAKING OF THE EXHIBITION. IT WAS REALLY, IN MANY WAYS, A STUDY FOR US TO LOOK AT DIFFERENT KINDS OF PROGRAMMING AND I THINK THAT WAS REALLY HELPFUL IN OPENING OUR EYES TO WHAT ARE THE POSSIBILITIES FOR A CURATOR IN CONTEMPORARY ART.

VICKI CURRY>> WHICH COMES BACK TO THE ORIGINAL PURPOSE OF LACMA LAB, FINDING NEW WAYS OF GETTING PEOPLE INTERESTED IN ART.

ROBERT SAIN>> IT'S A LOT ABOUT QUESTIONING. IT'S NOT ABOUT PROVIDING ANSWERS. THE VISITOR ACTUALLY IS THE FINAL PIECE OF THE EQUATION BECAUSE NOW THE VISITORS, IN MANY CASES, ARE NOT ONLY PARTICIPATING, BUT THEY ARE IN FACT TRANSFORMING AND CHANGING WHAT'S HERE.

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JESS>> LACMA LAB'S EXHIBIT CALLED "MAKING" IS OPEN THROUGH SEPTEMBER 1. YOU CAN CALL THEM FOR MORE INFORMATION OR YOU CAN LOG ONTO THEIR SPECIAL LACMA WEBSITE, AND IT'S ALL FREE OF CHARGE.

[323-857-6000]
[WWW.LACMA.ORG]

VAL>> DO YOU THINK LIKE IF VAN GOGH OR PICASSO HAD GONE THERE AS CHILDREN, THEY NEVER WOULD HAVE GONE THROUGH ALL THEIR DEPRESSIONS? (LAUGHTER)

JESS>> IF PILLOW FIGHTS IS ART, I COULD HAVE BEEN AN ARTIST.

VAL>> YOU COULD HAVE BEEN AN ARTIST. THAT LOOKS LIKE GREAT FUN. A REMINDER, OF COURSE, THAT YOU CAN GO TO OUR WEBSITE TO GET TRANSCRIPTS OF PAST SHOWS OR HEAR AUDIO OF OUR RECENT PROGRAMS AT KCET.ORG.

JESS>> AND THAT'S TONIGHT'S PROGRAM. THANKS FOR SPENDING YOUR TIME WITH US AND, FROM ALL OF US HERE AT LIFE AND TIMES, GOOD NIGHT.

LIFE AND TIMES WAS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

AND THE CALIFORNIA ENDOWMENT
THE STATE'S LARGEST HEALTH FOUNDATION SUPPORTING ORGANIZATIONS THAT DIRECTLY IMPROVE THE HEALTH AND WELL-BEING OF CALIFORNIA'S DIVERSE COMMUNITIES. THE CALIFORNIA ENDOWMENT, A PARTNER FOR HEALTHIER COMMUNITIES.

TO REACH US AT LIFE AND TIMES, CALL 323-953-5555. SEND US AN E-MAIL TO LIFEANDTIMES@KCET.ORG OR LOG ONTO OUR WEBSITE AT WWW.KCET.ORG TO SEND MESSAGES OR DOWNLOAD TRANSCRIPTS OF TONIGHT’S PROGRAM.