No Worries - Housing Boom, Lucrative Opportunities Await All in 2007
Edward Lazear, chairman of the
White House's council of economic advisers, had the best news in months
for all citizens of the United States when he told reporters that the
short-lived housing slump is over and "it looks like the precipitous
decline that we saw earlier is not going to occur in 2007."The news once again proved that President George W Bush's economic policies are working to maintain and build the world's largest economy. If indeed there was a housing bust, or slump, it lasted no longer than the common cold.
Home building investment during the July through September quarter in 2006 fell by the most in 15 years, which trimmed 1.2 percent off the economy's growth. Lazear comforted those who worry about the United States' economy by claiming the recent downturn "has already played out."
During 2007 Lazear predicted the housing market would gain momentum, because everyone has a job and plenty of cash to spend, so these results translate into positive growth predictions in the months ahead.
The chief economist also called-off volatile energy prices and predicted those days are over too. During 2007 energy prices would remain stable he said.
Lazear used the press conference to warn future Democrats in Congress that they must maintain President Bush's tax cuts, because if they did not he predicted chaos and detrimental economic effects to the United States.
There will be no tolerance for isolationist economic policies, no matter what the liberals or Democrats pretend to know, he added that such practice would kill trade opportunities for businesses switching to China for cheaper labor and product development.
Rob Portman, White House budget director, had even better news than Lazear. Portman expects a robust economy in the United States during 2007 --with the housing slump completed-- and unexepected revenue flow would even out the cost of occupying Iraq he told reporters.
The Iraq Study Group, which released its findings on Iraq 6 December 2006, estimated the cost of having invaded and occupying Iraq would run about $2 trillion, or 20 times higher than President Bush's initial estimate. The price tag did not include Afghanistan or the White House's war on terrorism.
"The strong economy has been extremely important in a number of respects. It's had a very specific impact on our deficit calculations and our ability to afford increasing costs," Portman said.
The fiscal picture is improving Portman contended as he now felt the budget deficit of $339 billion might be a little too high. The deficit was only $248 billion in 2005, but he did not hedge on what the final figures would be for 2006.
Nearly all workers are employed Portman said and inflation is nil, which is all favorable for a healthy financial 2007 across the board.
In further evidence that President Bush's policies have been working, there was more good news from Wall Street on 19 December 2006. The Goldman Sachs Group gave its chairman and CEO Lloyd Blankfein a $53.4 million bonus check. Morgan Stanley could only afford to pay its CEO John Mack a $40 million bonus.
Blankfein, 52, was handed options to spend another $10 million Goldman shares. Goldman handed out $150 million in bonuses to 11 of its executives, with underling presidents Gary Cohn, 46, and Jon Winkelried, 47, each receiving $25.7 million checks.
Some $36 billion in bonus checks were handed out this week across Goldman, Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc., and Bear Stearns Cos. The total doesn't include hundreds of minors or private investment firms.
---This content is copyrighted by Think & Ask, reproduction of any kind is not permitted without written consent.---