Houston economy and housing prices (Spring, Center: real estate, how much, house prices)

[stratfordspartans]

Originally Posted by househunter2008

Some analysts are even predicting $20/barrel oil. If that happens, I think it will have adverse impacts on Houston .... hope oil industry is not next in line for the bailout.

These are the same idiot analysts that were predicting $200 per barrel oil less than 6 months ago... amazing how fast things change in this economy and world. No expert knows for sure, but I can tell you this that everyone knows that the US economy is currently in terrible shape. Layoffs are occurring at companies where people thought they had a secure job and the company was solid. The scary part is that it seems only to be the tip of the iceberg. The mortgage and housing crisis got the ball rolling, but think about the next 600 pound gorilla, credit card debt of consumers. Once people start losing jobs, credit card debt will be the next defaults that will cause banks to need another bail out. Just think, even a year ago, banks were giving out credit lines like candy. Things have certainly tightened now, but the damage has been done and the bomb is ticking. Its a domino effect caught in a vicous cycle... companies are performing poorly financially because they can't borrow and consumers aren't spending their money on products causing companies to go belly-up and/or lay off employees; but consumers aren't spending because they are insecure about their jobs assuming they still have one; Now multiply this on a Global scale (not just the US) and you gotta wonder if we'll ever recover from this bad hangover.

[sbhubbell]

I, for one, am very optimistic. We are not going to run out of oil in my lifetime, or probably even my kids. Simply ain't gonna happen. Alternative energy is expensive and not as "green" as everybody would like to believe. Not that I'm not for it, of course I am, but this country will still be oil dependent for years. Houston never had the housing bubble the rest of the country had, so the housing bust is nowhere near as bad here. My family has been employed by the oil industry for over 50 years, so I've seen and heard about a lot of ups and downs. Yes the economy is slowing, but I'd rather be in Houston right now than...say...Detroit? Or Las Vegas? Or even Philly where I moved from.

And if I hear the word "bailout" any more, I think I'm going to scream. As Dave Ramsey said, "it's freakin' socialism".

[texas7]

all electric cars and bio-fuels are a long, long way away. The economy will have gone up and down countless times before that happens. SO as far as that affecting Houston - I don't think it will in the near future.

[ErikU19]

You havent seen a bad economy until you come see Detroit!

With Houston's Energy, Petrochemical, and Medical positioning I think we are in great shape.

Like others have said Houston does not have the artificial/inflated home prices a lot of the country does...this will help cushion it's exposure to foreclosures and a loss in home values in the area.

[usc619]

UTMB has a huge layoff and the company that owns the woodlands mall files for bankruptcy

[Topaz]

Originally Posted by usc619

UTMB has a huge layoff and the company that owns the woodlands mall files for bankruptcy

In addition, General Growth Properties also owns, in whole or in part, Baybrook Mall, Deerbrook Mall, First Colony Mall, and Willowbrook Mall.

Not good!

[jd433]

The problem would be that there is no more DEMAND for oil when the world turns to alternative fuels... Please explain what we will do when oil is no longer needed?? Look at all the fortune 1000 companies here that make there living off of oil infrastructure, exploration , mining etc.. Well what if oil was worthless??? Now what will become of Houston??

[ErikU19]

You can bet existing oil companies are exploring future energy technologies while expanding the in place oil industry...not to do so would be scuicide...they have the capital, manpower, and know how to do so

You also have to consider with the recent falling of crude the push for alternative energy is going to fall just as fast....if the investment in alternative energy isnt justified because oil isnt 147 a barrell then it simply wont happen..

Crude is going to lay low for quite a few years while the recession takes hold of the world...

[BunBoHue]

IMHO, oil is not going away anytime soon. Sure there are many companies developing alternative forms of energy, but how many of us can afford to move to that new power source and how quickly can companies make that transition? And with the price of oil so low, the push for alternative energy is not as great, even though it's on everyone's radar now. There are millions of gas/oil burning cars on the road in the US today, mine is one of them that will be using oil for a long time. Houston's economy will go down some what, but I don't think it will get as bad as Detroit.

[jd433]

I would not be so worried about energy companies. I would worry more about the companies that provide pipelines and rigs and all the hardware needed to mine for oil. Believe me there are a lot of them in Houston. Most of the fortune 1000 companies here are dedicated to the Oil Infrastructure needed for mining and exploration.

What are these companies going to do start building windmills??? Or solar panels?? how can you evolve from building pipelines to making windmills???

Moderator cut: political

I know it's still a matter of time but I am sure that the question of Oil is more of When as opposed to if it will come to an end.