What does it mean in this article on sub-prime that TX is under a protective BUBBLE?

Question

"Ground Zero" Mortgage Crisis 7/14/08

CBS 7 Staff

July 14, 2008

It's being called "Ground Zero" for the sub-prime mortgage crisis that surfaced last summer.

The savings bank called Indymac in California was overcome with roughly six billion dollars in bad loans.

Loans they made for houses to people who could not afford them.

The scandal has ruined millions of lives.

Texas is living under a protective bubble, however, and depositors here have nothing to fear.

John West, President & COO Community National Bank in Midland, said, "The housing industry in Texas is strong and good. So, I would not worry about a savings bank in Texas. I would worry about a savings bank in California or Florida."

The FDIC warns more failures are to come, and they're hiring more people to handle the work.

90 banks are now on their watch list, and they estimate eventual losses at over one trillion dollars worldwide.

Answer 1

It means the Texas housing market seems to be "strong and good" (to quote the next paragraph) and therefore there don't seem to be any problems in Texas (at least not yet).

Answer 2

Texas is one of the states enjoying a stable market.  Lenders were not doing bunch of speculative loans, so there is not a flood of foreclosures on the market causing a glut of inventory and driving down prices.

Answer 3

It means that Texas is fine...The lending laws in Texas especially the ones regarding refinancing are very strict