when is this economy going to straiten up?

Question

realestate /construction home repairs all down any ideas on the turn around

Answer 1

Well, there are several reasons. The main factor behind the cause is the increased cost of energy. And that is partly due to us invading Iraq and having a tense situation with Iran. Iran supplies a large portion of oil, any conflict with them could lead to them cutting off oil and raising energy prices significantly. When energy prices rise, that raises the price to transport all of our goods and manufacture them. That also raises the cost of people powering, heating, and cooling their homes and to drive to work. So people have less money to spend on goods because they are spending it on energy. Also since transport costs go up due to the energy cost increase, after so long companies raises their product prices to counter the increased transport cost. Only a few will hike prices at first due to trying to remain competitive, but once the first few do then it is easier for the rest to follow and hike prices. This causes inflation. To combat inflation, the federal reserve hikes interest rates to get people to stop spending so much and start saving money instead. However, when interest rates get hiked, less people buy houses, redecorate their homes, buy cars, etc because the price of the loan will cost much more due to the increased interest rate. When people buy less the law of supply vs demand takes affect and prices start going back down or quit going higher.

The other problem that figures into the equation is that financing lately has made it easier for many people to build new homes compared to buying pre-exhisting homes. So when the economy is going good people can build the new homes that weren't able to afford a home before. However many of those people when the economy was good would sell their home after a year or two and build another new home. The problem is that too many new homes are being built. And the people that already own a home now can hardly get rid of their pre-exhisting home to buy another one because it's easier to finance a newly built house compared to an old one. So what happens is because people can't sell their old house, prices start falling. Also, due to tax increases and such many of the new houses get foreclosed on. And people that are selling their house have to compete against foreclosed house prices, especially in a new neighborhood.

So energy prices need to go down. I don't think that will happen till we get Bush out of office and get someone that will actually negotiate with Iran. And we need to get house builders to build less houses and quit saturating the housing market with new houses. So we have at least a 2-3 more years of having to deal with this.

Answer 2

Not until Bush gets his *** out of the white house and even then we still have tons of work to do to clean up his mess.
I made more money and was 10 times happyer when Clinton was in office.I'm still not surprized Bush and his clan haven't got some part of the US nuked by now.

Answer 3

i might want to take it back to the broking service for assure. yet when the examine engine gentle isn't on their is probable not something incorrect with the truck. Did you by twist of destiny positioned E-80 5 contained in the truck reason which will drop the mileage that a lot.