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Some of what you say is true (Texas had stronger regulations regarding HELOC etc - pretty ironic for a Red State), but another reason Texas escaped the worst of the housing crash is because home prices didn't get as high to begin with.
In any event, it sounds like Texas may be in a housing bubble NOW (especially if the Texas economy turns south):
Those housing prices NEED to come down!!! The article claims that they are "relatively affordable". They are if you're from a high cost Yankee state (or California), but pretty damm expensive for natives. I hope that the out of staters start leaving.
Texas has the 5th lowest tax burden in the country.
Yet higher taxes played a role in Texas dodging at least one pitfall. Imagine how many of these distinctions Texas wouldn't have if it wasn't so greed-centric.
One of the worst five states in terms of percentage of population living in poverty.
One of the worst ten states in terms of health of the elderly.
Two of the five least literate cities in the nation.
For several years now, wingnuts on this site have been pointing to Texas as an example of the success of GOP policies while pointing to Blue states as examples of economic "failure". Well, it now appears - thanks to low oil prices - that mighty Texas may be headed for recession like it had in the 80's (the rest of the country - probably not so much (since Texas is so much dependent upon oil)). And - just to placate those wingnuts who claim this is all left-wing spin, I'll using use a RIGHT-WING source (ie NEWSMAX):......Now, my point here is NOT to "gloat" over the economic troubles that Texas is about to experience, nor is it to say that GOP policies in Texas led to the recession. My point is that much of the success of Texas has had LITTLE to do with it being a RED state and a LOT to do with the natural resources the state happens to be sitting on. Dependence on those natural resources - notable OIL - led to the economic boom in Texas and to it's economic decline during DOWN TIMES. It ain't so much POLITICS that's driven Texas success and failure as it is an ACCIDENT OF GEOLOGY.
Ken
Whoa, shocking that a state/nation highly dependent on one source of income suffers when that source devalues.
Go look at the economies of IL or NY, especially NYC, when the financial markets suffer.
Or even better, take a look at NYC, where 40,000 taxpayers provide almost all of the tax revenue. If even 500 of them moved, NYC could go bankrupt.
Even accounting for COL etc, Texas poverty rate is still nearly 16% (15.9%). National average is 14.5%.
Also, the economic gains since the great recession have pretty ALL gone to the richest folks in the state - something that wingnuts complain about all the time at the Federal level. Apparently it happens in deep Red Texas as well (even WITH that states' GOP policies).
Yet higher taxes played a role in Texas dodging at least one pitfall. Imagine how many of these distinctions Texas wouldn't have if it wasn't so greed-centric.
One of the worst five states in terms of percentage of population living in poverty.
One of the worst ten states in terms of health of the elderly.
Two of the five least literate cities in the nation.
Believe me, if they left the Mexico bordering counties out of their statistics, Texas wouldn't have such poor stats. They really bring the average down.
Texas is a much different economy that in 80's ; now the state with the most fortune 500 companies. I think a lot of manufacturing will soon see the effect of oil companies reducing spending from steel to equipment. Many drillers will turn to natural gas as far as small. ones. Refiners will maintain margins. Likely the refineries hit will not be the newly refitted on the Texas gulf coast that can produce more at cheap labor cost. Where pipelines are not built and rail not developed plus high drilling cost will go under first.
True enough - so the GOP in Texas favored stronger regulations (at least in regards to housing) and therefor avoided the last housing crash (though they may be headed for one now).
Ken
Texas has a longer history of Dem control than Repub.
Go look it up.
But the Dems in Texas are nothing like the Dems in DC.
I don't know why anyone would become giddy at the prospect of any state being at a higher risk for a recession. My sense of Texas is that the economy is substantially more diverse than oil, no?
Yes. Oil is less than 10% of TX GDP. Manufacturing is much higher.
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