| The year of 2007 wasn't disastrous but surely wasn't | | | | Arabia knows that it will eventually run dry and won't |
| any fun. People are looking forward 2008 and the | | | | be increasing production to speed up their demise. |
| great recovery that is in store for them but chance | | | | Thus it is in the best interest of most oil producing |
| are that it isn't coming. 2008 will be a year when the | | | | countries to keep production slow and increase the |
| economy is still dealing with the problems starting at | | | | amount of money they can get for each barrel. |
| the end of 2006 and clearing themselves out. | | | | With oil prices running around $100 dollars it is possible |
| Therefore, the economy should be recovering in 2008 | | | | that people will pay more for the oil that goes into |
| but won't be doing much else besides healing its old | | | | automobile gas tanks, heat and other products. This will |
| wounds and preparing for a strong 2009. | | | | create further stress on the American family and they |
| Housing Problems: The price and value of houses has | | | | will respond by spending less on non-essential items. |
| declined and isn't likely to make a quick recovering. | | | | Government Tax Revenue: Taxes aren't expected to |
| What makes this so important is that it didn't affect | | | | stagnate in 2008 but local governments and the |
| low end housing only but also made its way into high | | | | federal government will continue to spend out of |
| income properties. In some places these high income | | | | control. One of the reasons why tax revenues are |
| properties have declined more in value then the lower | | | | stagnant is because consumers won't be spending as |
| end housing simply because no one wants to pay lots | | | | much money and sales tax will decline. Likewise, new |
| of money for a house right now. Since mortgages are | | | | industries that produce high wage jobs won't be |
| more in cost then the value of the house it has a | | | | springing up anytime soon while many current |
| dampening affect on spending. | | | | industries may go out of business. |
| Consumer Spending: Consumers have maxed out their | | | | With the war in Iraq, the government bailout of the |
| credit cards, don't see big raises and fully extended | | | | sub-prime crisis, increased spending on alternative |
| their lines of credit and won't have a lot of money to | | | | energy grants, a whole new round of the mini-baby |
| spend this year. When we add to the mix that houses | | | | boomers relying on government help and student loan |
| are worth less then their mortgages it won't be a | | | | disbursements, with an aging workforce that is just |
| surprise that most families won't be flooding the malls | | | | starting to retire the government is going to have a lot |
| and filling up their shopping carts. These consumers | | | | of pressure placed on it. Many local and state |
| simply can't afford it and won't be able to fit another | | | | governments (i.e. Michigan) may attempt to raise taxes |
| penny on their credit cards. | | | | to pay for needed services. |
| Oil Prices: Rumors are swirling around that Saudi | | | | |