U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Nevada
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-31-2012, 01:08 PM
 
Location: 130 Miles E of Sacramento
5,383 posts, read 3,268,943 times
Reputation: 3556

Advertisements

Please post your thoughts of how Nevada was hit the hardest by the recession.

I believe it's the mass immigration of Californians that hit us the hardest. California is one of the most expensive states, therefore people don't have much savings. They go out and buy houses they can't get, and don't have a job.
Reply With Quote Quick reply to this message

 
Old 05-31-2012, 01:18 PM
 
17,629 posts, read 35,992,951 times
Reputation: 10132
Housing boom and bust here, fueled not just by Californians, just like in Phoenix.

Economy not diverse enough, depends a lot on tourism, which drops off in a bad economy.
Reply With Quote Quick reply to this message
 
Old 05-31-2012, 01:25 PM
 
Location: 130 Miles E of Sacramento
5,383 posts, read 3,268,943 times
Reputation: 3556
Quote:
Originally Posted by observer53 View Post
Economy not diverse enough, depends a lot on tourism, which drops off in a bad economy.
Nevada's economy is based on mining and gambling. There aren't any major corporations headquartered here.
Reply With Quote Quick reply to this message
 
Old 06-01-2012, 07:49 AM
 
Location: Reno
843 posts, read 1,830,176 times
Reputation: 583
Quote:
Originally Posted by Kevdawgg View Post
Nevada's economy is based on mining and gambling. There aren't any major corporations headquartered here.
I'd think that mining has saved NV from a worse fate... I'd imagine when times get tough most sane people stop gaming...
Reply With Quote Quick reply to this message
 
Old 06-01-2012, 08:55 PM
 
Location: Las Vegas, Nevada
12,686 posts, read 31,820,956 times
Reputation: 5406
It isn't gaming or mining that caused the problem. The cause was banks talking people into loans they could never pay back, artificially inflating the value of homes, and overbuilding. For twenty years developers built close to 4,000 new homes a month ─ for TWENTY years, 6,000 new people PER MONTH moved here. Home prices kept going up and up, just like they did in California. And just like California, the bubble finally burst. That put thousands of construction workers out of a job.

But with that kind of construction going on for TWENTY years, hundreds of other businesses that support the real estate market boomed for twenty years, and then also went bust. Businesses like, well - Realtors, floor and window coverings, furniture stores, building materials, swimming pool builders, landscapers, plumbers, electricians, and on and on, went under because, suddenly, almost no new homes were being built anymore. Still, Las Vegas isn't losing population. Go figure.

Although the amount construction here since the crash is probably what would be considered "normal" in other cities, most of the unemployed were from the housing industry; such as framers, dry wall hangers, tapers, painters, concrete layers, tile setters, etc. It affected the resort industry also, but that seems to have recovered. I don't know about Reno, but the notion there is no diversity in Las Vegas is just wrong. People think of Las Vegas as The Strip, but business in this town is a whole lot more diverse than is given credit for. The service industry is the largest employer in the state, followed by mining, but there are thousands of other occupations in Las Vegas that most people never imagine under normal circumstances.

These figures are from City Data, and obviously from before the economic meltdown:

Size of nonagricultural labor force: 811,700

Number of workers employed in . . .

natural resources and mining: 400

construction: 88,100

manufacturing: 23,200

trade, transportation and utilities: 140,000

information: 10,200

financial activities: 46,000

professional and business services: 95,400

educational and health services: 53,900

leisure and hospitality: 247,600

other services: 23,500

government: 83,100

Average hourly earnings of production workers employed in manufacturing: $14.60 (Nevada average)

Employment | Las Vegas Chamber of Commerce

With boom over, Las Vegas enters Era of Normal - Business - ReviewJournal.com
Reply With Quote Quick reply to this message
 
Old 06-04-2012, 08:22 AM
 
4,891 posts, read 9,273,851 times
Reputation: 8386
Another first rate QUALITY post from Mr. Buzz himself.

Muchos |jerry| Garcias.
Reply With Quote Quick reply to this message
 
Old 06-04-2012, 03:47 PM
 
Location: Las Vegas, Nevada
12,686 posts, read 31,820,956 times
Reputation: 5406
Quote:
Originally Posted by StaggerLee22 View Post
Another first rate QUALITY post from Mr. Buzz himself.

Muchos |jerry| Garcias.
Garcias a ustead.
Reply With Quote Quick reply to this message
 
Old 06-05-2012, 06:04 AM
 
Location: H-Town... "A place to call home"
2,531 posts, read 4,078,920 times
Reputation: 891
The housing crisis was the leading microeconomic cause of the recession that impacted Las Vegas so drastically.
The macroeconomic cause was the conversion of the U.S. economy from manufacturer to consumer. The growth in consumption caused debt to rapidly expand but was not accompanied by wage growth so people used their homes for collateral. When the bubble burst the new economic model of mass consumption could no longer be supported and since the premise for growth was based on consumption everything contracted. This is the point where the government stepped in and really messed things up...

You can read all the details in "Anatomy of a Train Wreck, Causes of the Mortgage Meltdown" by Stan Liebowitz.
Reply With Quote Quick reply to this message
 
Old 06-08-2012, 02:11 AM
 
Location: suspended on a tow truck 200 miles a year
62 posts, read 162,815 times
Reputation: 40
Vegas will come back, given their rising scores on Dr. William Fruth's Policom Economic Index just released for May, 2012, vegas is at #33 out of about 400 large metro areas, beating most large metro markets in WA, OR, and CA


see,

About the Presenter
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 09:38 PM
 
944 posts, read 1,446,250 times
Reputation: 618
And it was the Euro banks that were too free when giving the USA banks Paper. Thus the USA banks just opened the windows and gave paper to anyone regardless of their fico. knowing that President of CHANGE would most likely bail them out which he did.

BTW the LUXURY Market did not get hit at all by any of this, fact Luxury RE did very well during the recession.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Options
X
Data:
Loading data...
Based on 2000-2016 data
Loading data...

123
Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Nevada
Similar Threads
View detailed profiles of:
Follow City-Data.com founder on our Forum or

All times are GMT -6. The time now is 08:07 AM.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top