Conference Listeners Predict Goldilocks Economy

NEW YORK CITY-According to the listeners of a Deloitte Development LLC presentation on Tuesday, the ‘good times’ are likely to continue through 2007 with a Goldilocks economy continuing rather than a hard landing recession. This is in spite of some groups warning of an incoming recession. Listeners were invited to vote on their predictions for the new year as the webcast began.

Dennis Yeskey, principal of Deloitte Consulting LLP and national director of the Deloitte & Touche LLP Real Estate Capital Markets pointed out both the good and bad economic messages that are fueling the debate. Record prices, strong corporate profits, a resilient economy and low interest rates are all positive factors for the sector.

“If you are a Goldilocks person you had a huge bump last week with the fourth quarter numbers,” Yeskey said. While the numbers are still preliminary, it appears that the GDP rose to 3.4%, which is both significantly higher than Q3 results, which averages 2% of the GDP, and the Q4 forecast of about 2.2% GDP. “There is a rosy scenario going on here.”