Category: Federal Reserve, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

18 Responses to “Slides From the Federal Reserve Bank of Dallas”

  1. HubbaBuba says:

    Before Texas gets a big(ger) head you might consider unlike other States you dominate the Country in landholders getting a free check just for opening up the access to oil and gas. I mean, that’s pretty easy isn’t it compared to other non-freebie (less drill and hookup costs ganted) income.
    I’d take getting a check for my lucked-into ground resources any day. Many did nothing extra for it.

  2. Paul Mathis says:

    So Business is Booming in Texas

    But they can’t afford to expand Medicaid to the poor?

    In addition to having the highest rate of people without health insurance in the nation, Texas also has the largest number of children without health insurance and the highest rate of poor adults without health insurance. More than 852,000 Texas children lacked health insurance in 2012.

  3. [...] Source: The Federal Reserve Bank of Dallas (h/t Barry Ritholtz) [...]

  4. flocktard says:

    Texas didn’t get hammered as hard on mortgage defaults as they have some strict rules as to cash out re-fis, home equity loans, and frequency of taking out new loans. The rules served them well during the crisis, as they cut off the temptation for wretched excess, although I always thought this was “nanny state” stuff you don’t normally associate with Texas.

  5. Stock Soup says:

    In reference to slide 14 – I would love it if you had an economist guest author explain why …

    excess reserves are not part of the monetary base

    I suppose this is why there is no inflation from money printing.

    • Stock Soup says:

      Excess reserves are not part of the monetary base because they are not in circulation. You need money printing + money supply + money velocity (link) for increase in inflation. Therefore, no increase in inflation.

    • Stock Soup says:

      okay, I am reformulating my question:

      1) the fed prints money
      2) the fed uses that money to buy treasuries and MBS

      then why does the cash it used by those securities end up as excess reserves???


      • MidlifeNocrisis says:

        Technically, it’s not “money printing”. I would suggest several weeks of study time at websites that discuss monetary policy in a somewhat (relatively) politics-free environment. Pragmatic Capitalism would be a good choice for a starting place, IMO.

  6. VennData says:

    And that quality of life!

    If things are so great, why do those Texans vote for guys like Ted Cruz who want to shut down government? And secede?

    • VennData says:

      Wow, check out VennData’s video and see how much Federal money they get in Texas, you mightwonder why Fischer didn’t include all that socialism we Non-Texan pay for Texas.

      Let’s see those Texas congressmen unilaterally end their Federal subsidies.

    • TerryC says:

      According to a new Gallup poll today, Texans are 7th from the top in a positive view of their standard of living. New Yorkers are 10th from the bottom. Data includes DC.

      So, Venn, I guess you also think those 27 million Texans must be delusional. The reason they elected Ted Cruz is exactly for the reason he does what he does. The number one people worried about him are the Republicans who don’t know how to define their party or principles separately from the Democrats and the rest of the establishment in Washington. That he is not just another go along to get along Republican minority senator is what upsets the powers that be.

      It’ funny how since the Democrats have controlled both the House and the Senate for most of the last 80 years that they love their Republican colleagues. Always the minority on the committees, never the chairman, and usually irrelevant in a vote on new legislation. But that’s how it should be, right Venn? Can’t let those 49% have any say in government when we much wiser 51% know what is best for everyone.

  7. TerryC says:

    Apparently you are unfamiliar with mineral laws. In Texas, private property owners also have mineral rights. Quite often, the surface owner (typical house owner) often does not have the mineral rights. These are separate, and go back over 100 years. Those “lucky” enough to have the mineral rights with their properties (often ranches and farms in families for generations) usually get from 1/8 to 1/4 of all production removed from beneath their land. The state of Texas also has much property in west Texas and the panhandle. University Lands (UL) are put up for bid when leases are up and there is no production. Anyone can bid on a lease, with the lease going to the highest sealed bidder. There are also Public School Lands (PSL) where the royalty goes to the state. Almost all of the royalty money goes to schools and universities. The legislature also appropriates some of it for other purposes. The operator of a lease (and their partners) can drill for oil and gas, and get all the revenues from the production. They royalty owner gets their 1/8 to 1/4 right off the top. Both company and royalty owner are then responsible for their own taxes.

    As for the charts on the economy in Florida and Texas versus California, Michigan, New York and Illinois, when you put up barriers to business, that is what you get. Current rig count in Pennsylvania is about 55. Current rig count in New York is zero. I understand there is a propane shortage up there this winter, and prices are high. Maybe you should go out and look for some of your own.

  8. rj chicago says:

    Hmmmm……???? Texas….Illannoy, hmmm….??? Texas, Illannoy.
    if I were a betting man……

    Barry: What say you of Mr. Fisher? He is far more conservative than many in the Fed so curious as to your take and his work.

  9. Slash says:

    15-year resident of Texas here (though not born in Texas).

    Texas as a state is run by idiots (the politicians, not the people who actually do useful things). Exhibit A: Louie Gohmert. Exhibit B: Cruz. Exhibit C: Almost everyone else in the state legislature and Congressional delegation.

    My impressions, as a non-Republican: whether by accident or design (probably both), Texas has a fairly well-diversified economy. Banking, real estate, medicine, law, advertising, airlines (American Airlines and Southwest are based here), pro sports (Dallas alone has 4 teams), education (colleges), etc. And of course, massive federal spending available to us in terms of military installations (that employ almost 200,000 people) and other federal employment (over 160,000). Johnson Space Center employs almost 20,000 people, mostly contractors.

    It is unfortunate that more people in the state don’t point out to the idiots at the state capitol and in Congress how much of our employment (and thus economy) depends on government spending of all kinds. But we have plenty of relatively recession-resistant non-government business, too (we’re not dependent on tourism or gaming, for example), so that helps.

    Texas does have problems, which, typically, the politicians decline to talk about, unless they can be pinned on Obama or Democrats in general. I wouldn’t expect the Dallas Fed guy to talk about them, either. Esp. since he has little control over the causes of any of them. It’s not his fault Rick Perry is an opportunistic weasel.

    My theory (which will never be verified) is that the state’s politicians don’t care about the poor people, so they certainly don’t want to do anything that will encourage them to stay here. The politicians would prefer for those people to leave and go burden another state. And because many of the people who vote for them are idiots, the stupid “secession” talk is not viewed as a strike against them, but as an indication of their “independence” from the federal government. But don’t doubt for a second that if the federal govt. suggested closing down a military base or large federal office, they’d get immediate hysterical phone calls from those same politicians, yapping about the employment, affect on the economy, etc.

  10. Lyle says:

    Re Texas and mortgage defaults:Recall that Texas had a major crisis in housing in the mid 1980s where foreclosures got quite high. In fact almost every bank in the state failed due to real estate loans. House prices crashed (the assesed value of my house in Houston fell 50% or so). As a result folks in Texas knew that the meme about house prices never going down was not accurate, since they did fall hard withing living memory. That and the laws about when you could get cash out in a re-fi made a difference. Further of course since development is not nearly as restricted in Tx as in other areas (both by natural and man made limits) meant that house priced did not run up as much. (Basically there are few natural limits to growth of Texas cities)

  11. leonardcrook says:

    $100/bbl oil has something to do with it. Since 2000, the price has tripled.