Friday, November 18, 2011

Houston's Job Growth Rate Explodes

Add Houston to Silicon Valley, NYC and Washington D.C. as an area where newly printed Ben Bernanke Fed money is finding its way into the economy.

The Houston Chronicle reports:
Houston area employers created a mind-boggling 79,500 jobs during the past 12 months, the Texas Workforce Commission reported Friday.

That represents a 3.1 percent year-over-year increase, the first time the Houston area has grown that fast since February 2008 when it was increasing at a 3.5 percent clip.

"That is getting close to what you can say is a boom," said Barton Smith, professor emeritus of economics at the University of Houston.
What's behind the boom? Most likely Texas tea. As I have reported before, oil is in demand across the economy, both in the consumer goods sector and the capital goods sector, when money gets printed, oil is one of the places you are going to see the impact first.

As Brian Shelley, who sent me the Houston Chronicle clip notes:
Fed prints money, oil goes up. Oil goes up, Houston booms.

1 comment:

  1. You are correct. I used to live in Houston when I worked for Enron. Lots of my friends and Enron colleagues are still in Houston - doing very well.

    Dallas too! I have lots of friends and family in the Dallas area. They are all doing extremely well.

    I tell everyone that Texas is my backup plan!