The Party is (JVer

Qv Philip Kuharski Executive Vice Presidenr Fidelity Mutual Sirvinss Bank Snokane. We

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party is over." describes the economic outlook for 1980.

In the last 4 years over 12 million newjobs were created while population was climbing less than 7 million! Real nationaf production increased by l8(7,. Almost 7rl million housing units have been started since 1975. Money supply has expanded sharply and consumer prices increased 3501, in this same period.

^ Such fun and games can't last lorever.

r The Fed's action has led to a drastic shrinkage of the money available for home loans. Manv instil.urions simply don't have itat any price.

o Underlying all of this are the politics of Election Year '80. Who knows what President Carter will do to gain his party's nomination and win reelection in November?

A few months ago, the consensus seemed to be that housing starts in 1980 would exceed th6se of 1979. But that seems unlikelv now. given the current monetarv'situation.

Demand for housing remains slrong. the demographics are lavorable. but a shortage of money will be the overridins factor.

As for the 80s, miny authorities are predicting thar housing starts will average around two million annually. They also are predicting (Please turn to page 32)

Story at a Glance

Prices for goods and services to rise 1Oo/o next year. . shortage of money for housing will override demand... South and West will lead in starts