Tough news about high-risk financial deals and squirrelly mortgage schemes has consumed the consumers' attention like nothing else for one very good reason:

The fallout affects everyone. When the national economy tanks and taxpayers are being tapped to pay for the sins of a handful of private companies and some foolish borrowers, smart people and businesses hunker down to ride it out.

The national numbers are bleak, no question, and the consensus outlook says it will take at least three years before we start to shake off the malaise. By comparison, local economies in some parts of the nation are relatively strong and they are intrinsically far more stable. That is certainly true in Central Louisiana.

The Bayou State benefits from several factors, including the following:

# It has tougher fraud statutes than many states, so "creative" mortgages like the "NINJA loans" seen elsewhere are rare. In Louisiana, "No Income, No Job and No Assets" typically means no loan.

# Louisiana banks are smaller community banks whose officers who walk along Main Street and eat at the local diner. They know their clients, and vice versa. This is completely different compared to the mega-banks that loan money without ever shaking a borrower's hand.

# Property values statewide don't jump around, either up or down, for pragmatic reasons: In most regions the population is flat or down slightly; Louisianans tend to be home-bodies, so lots of property is sold and shared within families; and the state is not a Top 10 destination for retirees and people who want second home. The local economic story does not fit the national headlines.

# Louisiana banks are not failing. They're healthy and prospering because their officers know their markets and clients.

# Credit is available. And guess what? To get it, you need to pass a credit check and prove you have a certain income.

# The housing market is fairly stable because homeowners are not upside-down in sub-prime mortgages or caught up in schemes to "flip" properties in the hopes of making a fast buck.

We need to remind ourselves now and again that most of us in Middle America have fairly conservative instincts and principles. In some cases, we have no choice. Lower education, poorer health and other factors dictate financial circumstances. But many of us choose to be smart about how we conduct business in our personal and professional lives, and that good sense is paying off. We're feeling the ripples of trouble, sure, but we're not being rocked.

Source: thetowntalk.com