May 23, 2010 – While the majority of the United States is still deep in the throes of recession and economic hardship, the state of Texas has been having a very strong 2010. The bonds for Harris County recently received a AAA rating from Moody’s and housing prices along with home sales have actually been on the rise in much of the state. What’s Texas’ secret?
It is my speculation that Texas had warranted suspicion of the irrational exuberance which the rest of the nation experienced in the years leading up to the national housing crisis. Not only is Texas generally known for acting independently from the rest of the country, but Texas likely still had the taste of its late 1990’s housing debacle in its mouth, in which a few developers swindled thousands of investors out of billions of dollars by building what were essentially ghost towns.
In my mind, I think the lessons to be learned from Texas’ prosperity is to always be wary of free money, like that which flowed out of real estate two years ago, and that critical and independent thinking are your most valuable defenses against a recession. Just look at California, with a 12.6 unemployment rate while Texas is only at 8.3.
What do Texans have to say about the secret to the success of their state?
Josh Groves
President of jobtrio.com
“Let’s get to work!”
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