Americans- Feel- Optimistic- About- Growth- And- Prosperity by AmazonHiStore

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The effects of higher interest rates and energy prices, combined with
decreased home price availability have reflected a cooling-off period of
the housing market.
Housing construction is suffering as well. An increased inventory of
properties already saturating a depressed market means an excess
supply of housing. New construction of homes and apartments, the
purchase of building products and employment in construction-related
fields will all be on the decline as the marke...



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The effects of higher interest rates and energy prices, combined with decreased home
price availability have reflected a cooling-off period of the housing market.
Housing construction is suffering as well. An increased inventory of properties already
saturating a depressed market means an excess supply of housing. New construction of
homes and apartments, the purchase of building products and employment in
construction-related fields will all be on the decline as the market softens.
Real estate is vital to the continued growth of consumer spending, and to the
economy� s growth.
Throughout 2006, the Federal Reserve has been tightening credit in an effort to keep
inflation under control by increasing interest rates.
In order for there to be a positive growth of the economy an effort to reduce inflation
must be achieved without inviting the risk of recession.
Crude-oil prices continue to escalate; the war in Iraq drags on with no sign of abating;
the market is imperiled by gas prices that have anxious consumers wondering when
there will be an end to the global energy problem.
A higher household expenditure on gas adversely affects the purchasing power of
households, and their attitudes on spending.
Why should rising energy costs directly depress property sales? A surfacing trend
seems to indicate that when gas prices rise home sales decline. When the prices drop,
sales increase.
With rising rates and mounting energy costs the fall-out on the economy could be
wide-ranging.
Despite the economic slowdown, the N.A.B.E. (National Association for Business
Economics) has predicted that America� s economy (as measured by the Gross
Domestic Product/GDP) will expand in 2007. And, that although a 2.8% increase in
core inflation is forecast, food and energy will be excluded from the rise.
The Federal Reserve will not feel inclined to raise interest rates further if there is a fall
in inflation pressures (however, high gas prices, and other commodities have the
potential to sustain inflation pressures).
Therefore, 2007, according to Commerce Secretary, Carlos M. Gutierrez, should be a
year when Americans feel optimistic about growth and prosperity.
Happy New Year!
Have an opinion or a question you would like me to answer, then write me!
� Your� Money Matters By Carl Hampton Author of � From Credit Despair To Credit
Millionaire�

								
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