Dubai Speculators Quit as Lending Drought Bursts Desert Bubble: http://www.bloomberg.com/apps/news?pid=20601109&sid=a2jrSPqYhVzY&refer=home Manhattan Awash in Open Office Space: http://www.nytimes.com/2008/12/03/b...l=1&adxnnlx=1228392885-6G6FhiZMUo96ddFIcdG9Dg
Anyone remember when the oil bubble burst in cities like Dallas? Dallas became a ghost town of office space. You could almost see the tumbleweeds blowing through the streets.
---------------------------------------------------------------------------- Ivanovich: Yes, I remember it but do not recall what time period. I just happened to stop over in Denver during that time during a Super Bowl weekend. The Denver Sunday newspaper had page after page of forced sales of homes. Denver was part of the Dallis related problem.. I drove around looking at really great homes for half the price of similar Twin City (MN) prices... when was that down turn?? Early 80's? agpilot
Right. I remember the Pinery, nice upper middle class area.... tons of vacancies... going for 50% off.
The Dubai bubble will make the Manhattan bubble look like peanuts. What you see in Dubai is only the beginning....
"But in early '82 oil prices began falling, stagnating at about $27 in '85. Then the bottom dropped out, and prices fell precipitously, finally reaching $10 a barrel in January 1986. With 70 percent of jobs in the Houston area depending directly or indirectly on the oil industry, the bust was in full flower. Construction all but came to a standstill, and some financial institutions failed, while others tightened credit. Thousands were thrown out of work. In January 1983, unemployment in the six- county Houston metropolitan area rose to 9.1 percent, the highest among the state's largest metropolitan areas. Beaumont-Port Arthur was hit even harder, with a rate of 14.9 percent. The overall rate for Texas was 8.5 percent." http://www.chron.com/disp/story.mpl/special/100years/1074418.html you could have a house in the area for just a buck.
Okay, Texas gurus: I actually (shamefully) watched CNBC last night, and Donny Deutch had Cramer on. Cramer was talking to a 41 Y.O. caller (with three children under 9) who lost his engineering job (100k+) in Michigan and told the guy to move to Texas and that he'd find a job immediately. So, is the insinuation that Texas won't fare worse this time around assuming oil busts? ...because its economy is more diversified? I thought things were tough even in Texas now? I know the last oil boom-bust cycle ripped Houston and other areas of TX a new one.
Well as we all know you have to just trust whatever Cramer says because he is always right. Just think if the Fed had done what Cramer had said when Cramer first said it - we wouldn't even be in this mess - according to Cramer. And now he wants to be the SEC chairman - I ask you, what could possibly go wrong?