COMMENT OF THE DAY: ENJOY THE RIDE “Houston: the wonder city that showed the country how laissez-faire economics, conservative values, and lax planning lead to growth and prosperity. It turns out Houston was just benefiting from another bubble and a siphoning of wealth from the rest of the country via higher gasoline prices. The shale boom was supposedly proof that peak oil was dead and we can keep building car-dependent cities. Houston was riding into the future in its new Mercedes. It turns out that shale was only accessible at prices too high to pay to maintain strong economies around the world. When consumers cut oil demand, the shale, deepwater, and tar sands dry up. We’re on the slope downward, folks. Oil prices will likely spike again when demand returns, Houston may boom temporarily, but consumers aren’t going to be able to pay for it forever. After the spike, demand slackens, prices drop, and expensive new oil projects are cancelled. Production drops, demand outstrips supply, and we hit another price spike. Over and over it goes until we one day wonder why we can’t afford to open the oil taps as wide as we could in the 2000-2010s. The thriving economies will be the ones that depend least on oil.” [Carpetbagger, commenting on Oil Price Plunge Leads to Stock Downgrade for New Greenway Plaza Owners] Illustration: Lulu