Comerica: US economy for 2006: From Great to Good by Rick Morren
Dana Johnson, Comerica Senior VP and Chief Economist noted at a gathering of investors, business executives, and press in Fort Lauderdale that the US economy is "chugging along very well" and continues to show a lot of resilience, regardless of all the onslaughts it has had as a result of hurricanes and 9/11. For 2006 he predicted the economy would be going from "Great to Good" as he sounded a warning about the possibility of a decline in the housing market boom, which is presently fueling consumer spending. "The present high cost of homes also has a negative effect on the ability of less affluent people to buy homes", Johnson said. He also forecast that long term the dollar could possibly decline in favor of the Yen, the Euro or other currencies as investors switched to more lucrative market opportunities. Johnson called the appointment of 54 year old Ben Bernanke, a former Fed governor and economic professor, who replaced Alan Greenspan, the 79-year-old chairman at the central bank, an excellent choice to keep the economy on track. When asked what he thought about the US budget recently presented by the US administration Mr. Johnson noted: "US budgets always end up very different from how they are originally projected, just like this one will." Comerica Incorporated is a financial services company headquartered in Detroit.
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