Lebanon’s politicians on Sunday welcomed the decision by Arab nations, including Syria, to back the head of Lebanon’s army as the next president, expressing hope the move would help end the country’s political crisis. Arab foreign ministers issued the endorsement of Gen. Michel Suleiman on Saturday after meeting in the Egyptian capital of Cairo.  The opposition requested that it receive representation in the governement porportionally to the distrubution of the parliamentr before allowing Suleiman to be elected.

Parliament Speaker Nabih Berri, who is allied with the opposition, thanked the Arab ministers for their call, saying "we hope that it will be translated on the ground to ward off any strife and end the current crisis.""I tell the Lebanese that we can start with the Arab resolution to … confirm our unity," Berri added in a statement released by his office.

Saad Hariri, head of the parliamentary majority, echoed Berri’s endorsement, describing the resolution as a "historic stance that expresses the real Arab will in rejecting all kinds of pressure on our country." "It also gives the Lebanese people moral, political and national support that will enable them, God willing, to overcome the current period," he added.

The ruling coalition has accused the opposition of obstructing the election of a new president under orders from Syria and Iran. In turn, the opposition has claimed pro-government groups in the parliament majority follow U.S. policies.

naharnet, Hayek Projects a Little Bad News, a Lot of Good for 2008
Michel Hayek, Lebanon’s most famous psychic, predicted that the year 2008 will generally bring good news, but warned of some bad news.
Hayek said obstacles that faced the election of a new president for Lebanon will "soon disappear," but warned that a "spell" will continue to prevail at the Baabda Palace and its environs. He did not elaborate.

Hayek expected Hizbullah to achieve an additional success in swapping prisoners with Israel, though at a "high cost."

 A country going through crazy times, it should have come as no surprise that Lebanon’s real estate prices doubled. "It’s completely ridiculous and against all forecasts of a difficult political situation. No one wants to sell at normal rates, everyone has now doubled their price," said Patrick Geammal, chairman and managing director of ASCOT. Whether real or imagined, such predictions have made their mark on sellers’ expectations and deals have stalled.

"If before the price of land was $2,000, they now want $4,000, but if you are willing to pay $4,000, they want $8,000," Geammal laughed.

Guillaume Boudisseau of Ramco Real Estate Advisors said he faced the same problem but believed that sellers cannot dictate prices. "They just don’t understand that they can’t set their own price," he said, adding that, "it’s mathematically based on the value of surrounding land."

Land scarcity is also a factor in pricing. In prime locations such as Ashrafieh, Hamra, Verdun, and Ramlet al-Baida, plots of land could be found two years ago. Today, however, there are only a few remaining plots, which is putting pressure on prices. "So those that held on to their lands are now asking ridiculous prices and making the market grow," said Geammal.

Prices have increased by 20% since March, prior to the clairvoyant’s prediction. "Growth is everywhere," said Nabil Gebrael, chairman of Caldwell Banker. He further stated prices only plateau during tough times for the market and resume to a steady increase once the market returns to normal. This phenomenon is due to two important factors: First, Beirut as a capital city is still inexpensive per square-meter compared to neighboring capitals such as Damascus and Amman. Second, building materials — steel, concrete, tiles, and fixtures — have increased due to the declining dollar against the euro. "In Lebanon, real estate is determined by cost, not market demand," insisted Gebrael. Bank Audi reported that the Construction Cost Index from end-2006 to end-June 2007 increased by 9.4%.