Wall Street helped create the Real Estate Bubble and many of the leading Brokerage Houses on Wall street are now reaping the benefits!
It has always been our opinion that Wall Street lead the way to shift the tides of Real Estate back towards stocks,futures,options,401`s and hedge funds.
They created a panic or buzz that many in our profession realized that "Fear Factor " always creates a panic! Take for example the Christmas Bonus firm Goldman and Sachs. Goldman Sachs Stock Brokers will reap a windfall from the $16 billion in bonuses the firm is set to pay - city and state taxpayers stand to benefit from a whopping $1.6 billion that will be pumped into the public treasury. Estimates of the tax revenues generated by the Goldman gold mine show the state gaining $1.1 billion in revenues and the city reaping a $500 million bonus of its own.
This will have a ripple effect for 2007! In my opinion I look for the Real Estate market to rebound from an abysmal 2006! With those type of bonus,many will look towards new housing as a way to show their new found wealth! This will in turn cause builders,laborers etc to benefit from the additional spending.
This country seems to follow the Boys on Wall Street, as the Street goes, so does the economy or at least the perception that "All is well in the World". With these types of bonuses being thrown around, I look for the market to continue to head higher which in turn does actually create jobs!
Big bonuses have a role in supporting the upper end of the housing market, generating transaction taxes and mortgage taxes,"
I maybe incorrect,but all indications lead me to believe we`ll be heading towards a good 2007!
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