Marketplace is doing a comparison between the Nevada and Nebraska economies, affected quite differently in the current economy. I don't think they have mentioned that Nevada is one of the five hardest-hit states, all with large Hispanic populations, that had a disproportionate number of subprimes dangled before minorities and thus a disproportionate number of foreclosures/bankruptcies.
So as with a dozen other topics, we very cleverly analyse in great detail things that are at most minor factors of a problem, not acknowledging the rhinoceros in the room.
I will note, just to make sure folks are clear, that I consider George Bush to have been as much a problem as any Democrat on this, or more. False kindness that led to cruelty.
It's not easy for Easterners to understand the land issues in the Mt. States. You would think with all that desert/forest/etc. there is plenty of land for development. This link shows that this is not the case
ReplyDeletehttp://www.blm.gov/pgdata/etc/medialib/blm/nv/field_office_maps.Par.1700.File.dat/LVFO_Map_100dpi_200907.jpg
So in addition to the Casino boom and bust cycles, you have a real restriction on developable land. This is not the case in Texas where because it was an independent nation that applied for statehood, the western reserve did not apply.
Add in water supply issues and like California real estate is extremely volatile. The normal investor/lender response to volitility is to require higher downpayments, better qualified lenders etc. But if we throw that all away with a government guarantee the results are predictable.