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2006 economic outlook.(MARKETS)(Cover Story)

While the twin deficits, talk of inflation and the potential for high oil prices linger as threats to the economy in 2006, many believe momentum spilling over from 2005, including the rebuilding after the hurricanes, a solid housing market and continued consumer spending can outweigh these threats. And even with Wall Street and the world adjusting to a new Federal Reserve chairman, experts predict the economy in 2006 will be just fine.

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If momentum serves as a predictor for what 2006 has in store for the economy, the forecast is rather rosy. "Broadly stated, 2005 was a good one," says Carl Tannenbaum, chief economist for LaSalle Bank. Tannenbaum points out ...

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