I think everyone, everywhere is starting to be

affected by the rising cost of fuel and petro-products.

For quite a while I really didn't notice any great difference -

now, however, it's a different tune.

We are getting letters from our vendors daily, notifying us

of building materials price increases. And I believe that the

price of a new home in our market now costs the builder

about 5% to 7% more money than six months ago.

That's huge, when you consider that the average new home

in our area is well over $250,000.00 with many topping $500,000.00,

and quite a few over a million dollars.

The house that cost 250,000.00 on Jan. 1st now costs 262,500.00

Consider that roof shingles have risen more than 35% since the 1st of

the year. Copper has gone out of sight. Aluminum has skyrocketed.

Lumber has remained fairly steady, but the quality is at an all time low.

Concrete is at an all time high.

Factor in the slow sales of new homes and we have the recipe for a

really tough time in the building business.

But - we aren't alone. Not by a long shot.

Every business, and every person is being affected by the cost of fuel.

A major adjustment is in the wind - More people are starting to do something about it.

I don't believe that the government should step in. I think the easy government

bail-outs and easy hand-out money and liberal government borrowing from other countries will

actually going to be far more damaging to us than the cost of fuel will ever be.

No - I don't believe that Americans will give up their life styles. We will work harder.

We'll work longer. But we won't give up our life styles.

We might take a while. And we might complain loudly. But we are a very resiliant

society. We will adjust.

We did it in the thirties. We did it during the World War periods. To some extent, we did

it in the seventies. We will adjust. We can do what it takes.

Just my two cents for today.