Huntsville singled out as bright spot in economy
Consumer-lending activity has increased in numerous midsize cities in the U.S., a sign they are riding out the recession better than big cities and rural towns, an analysis of credit data shows.
As banks pull back on risk taking across the nation, consumer-loan balances in places like Huntsville, Ala., are rising. In Huntsville, a metropolitan area of 376,000 that is home to many government contractors, borrowing increased 13.2% per household in last year’s fourth quarter, compared with the year-earlier period, according to data provided to The Wall Street Journal by Moody’s Economy.com and Equifax Inc.
Huntsville’s increase was the largest among 207 U.S. metropolitan areas tracked by the two data-gathering firms.
I hope we enjoy it responsibly while it lasts. I firmly suspect that Obama and congressional Democrats will feel compelled to cut some spending to rein in outrageous deficits in the coming years. Defense and NASA are always prime targets.
Whenever HSV makes a list like this the DHR sees a rise in people moving to the area for welfare benefits – even though Alabama doesn’t pay as well as the States the people move from, they think that a good economy means better welfare. Go figure.
HSV is still living with the Bush budget. If history is a guide, next fiscal year we feel the pain of a Democrat President and Congress (Clinton’s first two years IIRC cut about 5% each year – mostly affecting R&D and Acquisition, until Gingrich and the Contract with America reversed the defense cuts). Obama will be much worse.
As a percentage of GDP, the U.S. Defense spending is rather modest compared to other countries. It’s at about 4% right now, which is 1.5% lower that the 45 year average of 5% of GDP. The military is probably the most efficient government entity.
I’m sure BRAC will offset some of the effects of potential budget cuts. Not to mention, with all the turmoil and the emboldening of our enemies, it will be hard to cut the defense budget with ongoing conflicts and the potential for new ones?
Having lived thru several administration changes and a veteran of HSV’s economy, here’s my list RIP programs for HSV. Caveat – you won’t see the full curtain completely pulled back until Aug/Sep of 09. DOD: Missile Defense will see a substantial cut (we already have) – all PowerPoint programs (paper engineering) will bite it; no european site for missile defense; RSA may actually see some plus-ups to compensate, most notably, anything to do with re-fitting the depleted military; BRAC will get a slow down…the developers will continue to bankrupt and communities like Lake Forest (AKA “Lake Foreclosure” ) will spread. NASA – Constellation will see a change with Griffin gone and now the MFSC admin gone…the handwriting just got clearer. I actually see a net population decrease in HSV during the next 4 years unless the Bio-Med growth substantially increases. Yet “Reactionary” has a point with the “dependent class” migration. HSV already is ranked 83rd in city crime nationally…not something the Chamber of Commerce or the Mayor touts.