Somebody Send Texas “The Memo”

Sunday, March 20, 2016
Posted in category Bubble Economy, Economics

A brand new luxury hotel in Cotulla, Texas went up for auction after being open for just a tad over one year.

Things are unraveling in the oil fields of Oklahoma, which slashed its entire state budget 7 percent, and in the boardrooms of North American energy companies, 48 of which have gone bankrupt so far, according to Haynes & Boone LLP.

…In South Texas, where the 400-mile-long Eagle Ford Shale formation pumps 1.2 million barrels of oil per day, Malana Hotels & Suites owner Bob Zachariah just closed the hotel in Cotulla and put it up for auction. It opened last January with a sleek design and amenities such as iPad stations in the lobby and a lap pool.

…”We had to stop the bleeding,” Zachariah said. “We decided enough was enough.”

…”It’s a geopolitical play that Texas got caught in. What can mere mortals like us do?” Zachariah asked.

The mere mortals can refuse to borrow massive amounts of debt to build exorbitant brick-and-mortar businesses that rely on an unsustainable central planning framework to bring in paying customers. Here is the auction information online.

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