This NY Times article provides a good summary of the response of the Houston business community to the aftermath of Hurricane Katrina and the business opportunity that it represents. The article focuses on the short term business opportunities, although the more signficant economic impact to the overall Houston economy would be the potential population and job growth that could result from the exodus of New Orleans citizens to Houston. Nevertheless, the article is an interesting read of how Houston businesses are responding to the aftermath of Katrina, so check it out.
Update: Tory Gattis has good insights into the probable long-term economic impact of the hurricane on Houston’s economy.
Houston's Clear Thinkers
Longtime Houston attorney Tom Kirkendall's observations on developments in law, business, medicine, culture, sports, and other matters of general interest to the Houston business, professional, and academic communities.
Gattis is way too pessimistic on the economic implications, and buys into the “housing bubble” nonsense that’s about all the minority party hangs its hat on these days in terms of a comeback. There’s not going to be a national “housing bubble” that bursts, absent some idiotic federal policy like 1986’s “tax simplification” that destroyed real estate. However, there may be some local/regional adjustments, otherwise known as market corrections.
Indeed, it’s not chic to say this right now, and at least one local blogger will probably express outrage — OUTRAGE! — over these thoughts, but it may well turn out that we underestimate the creative energies that will be released in dealing with this disaster.
Over history, a person would have lot a ton of money if he bet on recession every time the U.S. received a little bad news. I don’t expect this time will be any different.
Of course, hidden from the veiw of we Houstonian proles was the NYT’s Paris edition, which took the same article….
…. and expanded it into quite the anti-American spew.
The New York Times. Not suitable for birdcage liner, as it’s fulla crap right offa the press.
Jim
Sloop New Dawn
Galveston, TX