re: Mansion sales and discount dining: oil rout hits Houston's rich

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Why are folks more panicked with this downturn compared to ones from the past? What makes this one so acute?

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I'd be lying if I knew the exact reason, but there are plenty of things at play.

1) This is mostly a supply issue, not a demand issue. Previous crashes, like 2008-2009, were a demand issue and most accepted the fact that demand would reverse course and get back to normal. This time around the supply is increasing faster than demand and no one seems to be willing to stop. You can't simply turn off the valve when you've got debt to pay. It is almost like a going out of business sale at a department store - sure your cost of that shirt was $12, but once you've bought it and your bills are coming due, you've got to sell it for something to make ends meet.

2) Efficiency has improved dramatically. Even if supply slows down and/or demand increases drastically, alternative extraction techniques have lowered the break-even point for companies across the board.

3) There are signs of slowing demand globally. You tack that on to the obvious supply growth and things look bleak.

There are other things at play as well, but basically everyone I speak to in the field says this is the worst they've ever seen it, including guys that were around for the 1980s crash.

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We live in Cinco and the showings were very slow

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I live in Cinco and I worry about properties in Katy becoming rentals. I'm especially worried about all the apartment complexes that developers insist on building. Nothing destroys a nice community faster than cheap apartments and subsidized housing, yet it's a never ending cycle Bc wtf do developers care about the communities they build in?

So, in the past I was paying $4 / gallon so oil guys can buy $2M houses?

These threads sicken me and sadden me at the same time.

Sad that some of you actually enjoy watching the largest industry in our region lay off friends, family, and people in general. And, if you think it's just the "oil field" trash that suffers this burden, then you're just as ignorant as I assumed.

The trickle down effect from all the ancillary services from lawyers, accountants, maintenance and service industry jobs, construction companies, and the list goes on and on that cater to the O&G gas industry will feel this as well.

And for every truck nut overspending dbag, there are X number of good members of our community that are losing their jobs. And before you say, "they should've prepared", stop yourself and quit being a dumbass. I don't care how much you're making, you can prepare for the worst, but losing your job and not seeing any real sign of a recovery and hope of finding a job that matches your experience would be pretty terrible.

During the housing bust in 2009, pickup truck sales dropped significantly.

Wouldn't shock me if Houston's real estate and car dealerships suffer temporarily. Hopefully oil prices climb again soon.

So people who live in mansion in Houston don't save any of their vast earnings at all?

Every day I see them being built I wish they'd all burn down

I feel bad for the responsible people that saved what they could while they had their jobs. I don't feel bad for the people who were making hundreds of thousands of dollars a year and weren't saving and are now paying the price. Everyone in every field has a chance of losing their job at any point, and anyone that doesn't save responsibly is asking to end up like these people

I like to think so, but I don't know how. The complexes abhor a vacancy, and will turn to subsidized housing before letting them sit empty. And there's nothing local government, the residents, HOAs can do about it. About 100% of the time, and that's being conservative, subsidized housing ruins the community.