Think China's huge trade surplus with the US merits the most attention? Wrong.
Selling YouTube for $1.65 billion? US automakers cutting 1/3 of its hourly US workers? The Dow above 12,000 for the first time? No. No. No.
Th Associated Press (AP) declared Top Biz News of '06: Housing's Decline. AP business writer Ellen Simon wrote, "The nation's house party ended with a thud in 2006, leaving everyone from condo flippers to Federal Reserve chairman Ben Bernanke waiting to see what would happen next." Further on, she quotes Moody's Economy.com as projecting that "the median sales price for an existing home will decline in 2007 by 3.6 percent-the first decline for an entire year in US home prices since the Great Depression."
What's it to you if you are neither planning to sell or re-finance your home in 2007? Contemplate the loss of one million jobs between 2006-2007 in the category known as the "housing sector". These job losses are to construction workers, furniture makers and sellers, real estate agents, mortgage lenders and salespersons. Also to those who make carpet and those who install it, those that make wallpaper and paint and those who hang it or apply it. How can the loss of one million jobs not affect everyone and severely impact the economy?
I believe AP got it right.