Recent Quotes

Area Development Site and Facility Planning, Feb/Mar 2006

"What's occurring right now in markets and in policy circles is a dangerous degree of complacency. And out of complacency usually comes the surprise that ends up doing the most damage to markets and economies."

On the opening day of the World Economic Forum in Davos, Stephen Roach, chief economist for Morgan Stanley, warned attendees "to watch out carefully for the end of the great American spending binge." He and others expressed concern about the U.S. economy and its excessive account deficit.

"Despite the rebound, CEOs were less confident at the close of 2005 than at the start. Looking ahead, they are cautiously optimistic, but not as optimistic about the short-term outlook as they were at the end of 2004."

This is according to the Conference Board. The research group reported that its quarterly CEO confidence index rose to 56 in the fourth quarter of 2005 from 50 in the third quarter. By comparison, the index was 61 in the fourth quarter of 2004, after peaking at 73 in the first quarter of that year.

"When you add restrictions on development, you are never quite sure what the results are going to be. We want to avoid political reaction to an issue that adds more problems and obstacles to economic growth."

Kathryn S. Wylde, president and chief executive of the Partnership for New York City, told The New York Times (January 18) that her group, whose members include most of the city's top developers, is opposed to any efforts to alter condemnation procedures through federal or state legislation. All across the nation, developers and public officials are saying that weakening or destroying the government's power to condemn property will seriously undermine efforts to rehabilitate decaying areas.

"Purchases of motor vehicles and parts fell at an annual rate of 45 percent - that's the biggest quarterly decline of the past 15 years - and this alone accounted for more than a 2 percent drop in GDP growth."

David Huether, chief economist for the National Association of Manufacturers, commented on a January Commerce Department report that the economy decelerated in the fourth quarter of 2005, growing at an annual rate of just 1.1 percent. Huether was not surprised by the data, but felt it was more disappointing than expected. He also blamed sluggish business investment for the slowdown.

"It is clear that at a regional level there are significant variations in the economic development models at work across the globe. The U.S. regional development framework is far more reliant upon its investment in knowledge sustainability... Asian-Pacific regions tend to place greater emphasis on mobilizing human capital...[and investing] in business-based innovation...while Europe's leading regions often possess strength relating to the high-technology service sectors and niche high value-added manufacturing."

Dr. Hiro Izushi of Aston Business School and co-author of the 2005 World Knowledge Competitiveness Index (WKCI) sums up the results of the index, which is the only composite and relative measure of the knowledge economies of the world's leading regions.

"The robust pace of economic growth in recent years has contributed to more jobs and higher standards of living and, for the budget, remarkable growth in federal receipts."

This is from a report issued January 26 by the Congressional Budget Office (CBO). Nonetheless, the CBO projected that the national budget deficit would rise to $337 billion from $318 billion last year.