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
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
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
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.
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