Boom times in west Texas.......again

[sofadoc]

The oil booms have came and went over the years in the west Texas oil fields.
They're back.
I live in northeast Texas. I've seen a lot of friends and neighbors get caught up in past excitements, pack up and head for the land of milk and honey (and most importantly, oil).

In the late 70's, when me and my buddies were all turning into adults, many of them chased that dream. Some lived like kings for over a decade. Others came crawling back with nothing left within a few years. But whatever the case, they all proved one thing......."What goes UP must come DOWN".

One of my high school chums moved there, and started a retail furniture business.
He begged me to bring my upholstery talents out west. He was going to set me up with a shop, and guaranteed me a salary that was 3 times what I was currently bringing home at the time.

I declined his offer because it just sounded too good to be true. He found someone else, and we rarely spoke to each other after that. He became very successful. He had a chain of Ashley furniture stores through out the oil basin.

But much like the brand of furniture he sold, his empire crumbled. He killed himself amid massive debt. 

One of my supply salesmen has been trying to convince me to move out there. He said that I could name my own price in that region for the foreseeable future. I've tried to explain to him that if I wasn't interested 30 years ago, I'm sure as hell not interested now.

People in those areas have pledged not to repeat the mistakes of their predecessors. We'll see.

http://www.delmarvanow.com/viewart/20131020/BUSINESS/310200011/
 

[SteveA]

How many miles is it from North to West Texas - maybe your salesman could open up a showroom and cart the furniture back and forth to you.  Sub contract with him and see how it goes.

SA

[sofadoc]

How many miles is it from North to West Texas - maybe your salesman could open up a showroom and cart the furniture back and forth to you.  Sub contract with him and see how it goes.

It's about 400 miles from my front door to the Midland-Odessa area. The salesman doesn't live anywhere near there.

The Dallas/Ft. Worth area has dozens of large shops that are closer to west Texas than I am. And they have far greater resources. I'm sure that if the idea were feasible, they would've already done it.

Besides, I have more than enough work right here in my hometown.

It would take someone that was willing to move there. That someone isn't me.

MIDLAND, TEXAS: "It ain't the end of the world.......but you can sure see it from there".
"When it rained 40 days and 40 nights, Midland got 6 inches"   

[gene]

The surprising part of the article is that cities are taking steps not to overspend!!! Yep. That's hard to believe. All governments work with the thought that the money will continue, i.e., we'll just raise more tax revenue, or push the debt onto our grandchildren.

I guess when cities actually run out of money, and they remember that, they can be motivated to do things differently the next time.

Does anyone think Detroit will actually try to do business any different than what they have been doing that got them into bankruptcy to begin with?

Another thought is that it's great to make $15 per hour and a $1000 signing bonus at Subway, but the cost of living there is such that it's like making minimum wage somewhere else.

Cincinnati just got a new mayor. The one who talks a more conservative talk got elected, which is a surprise to me (that he got elected). They both promised not to change the out of control retirement program for city workers.

gene

[Mojo]

Gene: Your right. This is what is going to cause the collapse of many cities and towns - pension liabilities.

We are already seeing this with bankruptcies of cities such as Detroit, Stockton, CA, etc. Governments should follow the lead of corporations and convert their pensions to 401 K's or 457's. Let the employee manage their pensions.

Detroit's woes came under the crooked administrations of Coleman Young and then Kwame. Their problems started long ago and continued. There were millions and millions ( probably in the billions ) in State and federal program money that was poured into the city only to have crooked Mayors and other politicians squander it away.

I can remember when I was still living in Michigan that all the board of education members were spending money on Limo's, fancy dinners, etc. They raised hell when they took the limo's away. These same people who ran the school system into the ditch ended up having to close a large number of schools in order to try and balance the budget.

I despise politicians. It doesn't matter what side of the aisle your on I feel they are all worthless. I had an individual ask me once if I was a Rep or Dem and I told him I wouldn't claim membership to either party. The days of having Statesmen represent you are long gone. Lobbysists / special interests run our country.

I probably better shut up. :)

Chris

[byhammerandhand]

I've been doing some looking at Social Security since turning 62.   Despite never having a penny's match in 401(k), I figure I'll get much more money out of my 401(k) and IRAs, maybe by the time it's done 10x.   I have been crazy diligent in funding them as much as I can.   I have been paying SS since I was sixteen, and the last 11 years paid both halves of it and that's all I have to show for it.   Of course, should I die early, my retirement accounts go to my wife or heirs.  On the other hand, should I have been disabled, SS would have kicked in and been a life saver.

Gene: Your right. This is what is going to cause the collapse of many cities and towns - pension liabilities.

We are already seeing this with bankruptcies of cities such as Detroit, Stockton, CA, etc. Governments should follow the lead of corporations and convert their pensions to 401 K's or 457's. Let the employee manage their pensions.

Chris

[byhammerandhand]

On a positive note, the mayoral (mayuberatorial) election of Cincinnati was yesterday.   The platform of the victor was:
a) The just started streetcar project was too expensive *
b) The city should not lease out it's parking lots and meters to a private company
c) It's time to get the cities fiscal house in order.

The platform of the loser was the opposite on at least a) and b).

On the negative side, the issue to convert the new city employees to a defined contribution plan failed.


* For the 1.2 mile streetcar between downtown and a nearby blight-infested but recovering 1880's neighborhood the cost was an astonishing $7500 per FOOT of rail line, before overruns.

[kodydog]

Your not exempt from math if your a Democrat or Republican.

http://www.daveramsey.com/show/videos/dave-breaks-down-aca-obamacare

[byhammerandhand]

Very interesting take on Abominable-care

Your not exempt from math if your a Democrat or Republican.

http://www.daveramsey.com/show/videos/dave-breaks-down-aca-obamacare

[baileyuph]

Are there prognoastications on the run of the boom?  Longer the better.

Doyle

[gene]

From what I'm reading, the majority of oil from West Texas is going to China.


gene

[baileyuph]

Oil to china, sure hope the price is marked up.  It could help the trade imbalance.

I read China actually ships more products to Europe than to the US?  Also, the US exports more oil than is imported.  The turn of times, but how long will it last?

One question I still have how long will the oil from fracking continue to flow?  Is this a more or less an interim opportunity?  

Doyle

[JuneC]

If China gets any more oil, their air's going to be so bad they're all going to die.  Seriously, Shanghai's air is deadly.  It was on the news again tonight. 

I had not seen that Dave Ramsey bit.  He's correct about SS giving a negative return.  Frankly, I don't mind so much that fact if people who "really" need it get it, but I'm not a bit interested in having SS fund other government boondoggles.  When they start that crap I'm gonna have to raise my voice. 

June

[gene]

China has plans for 10 more power plants to be built within the next 10 years. They and India are already far greater polluters than the USA.

Both China and India have over a billion people. I don't think the ruling classes are too worried about a bunch of people dying from pollution.

I may have mentioned this before: my brother-in-law is a pilot and he said when he flies into Beijing he can start smelling the air pollution in the cockpit at 18,000 feet on their descent.

Humans initially came out of Africa as they began to spread all around the world. What if pollution gets so bad on all the continents that all humans die except those in Africa. And then after thousands of generations the world heals itself and humans once again begin to leave Africa and spread all around the world. I wonder if this scenario has played itself out in the past, many times?

gene

[baileyuph]

Reading investment news, specifically related to oil fracking(sp?), there is a lot of investment ambitions in that activity, for example some corporations have PE, in the 50's and they haven't paid much return to date.  Imagine paying $150 to $200 a share and the profits todate are not visable!  The underlying truth might be there and will surface soon or in time.  That is what puts risk in investing, big question what is the risk in this subject issue, for investors?

Doyle