Oct. 29--WILKES-BARRE -- The economic forecast for the area looks very bright to M&T Bank Vice President and Economist James E. Thorne thanks to a modern-day gold rush called the Marcellus Shale Formation.

Mr. Thorne spoke to more than 50 business people at a luncheon Wednesday at the Westmoreland Club, hosted by the Greater Wilkes-Barre Chamber of Business and Industry.

He called the Marcellus Shale formation a "shot in the arm" for the area which will have significant economic benefits. The rock configuration found throughout nearly 60 percent of Pennsylvania's land mass has been promoted as a way to reduce dependence on foreign oil.

Mr. Thorne also highlighted some factors that have led to the economic downturn.

"We have overextended ourselves. We have consumed too much. We don't invest enough in education," he said. "The U.S. dollar is dead. The place of the United States economy as the leading economy in the world is over."

For the economy to improve, there needs to be an adjustment period, he said.

"We need to make more, consume less and save more," he said. "China needs to make less, consume more and save less."

Additionally, a new industry needs to spur economic growth just as the Internet did in the 1990s, he said. The growing field of green technology has all the characteristics to be successful in generating jobs, he said.

"Whether it is or not remains to be seen," he said. "The trick for people building portfolios is to look forward. The trick for being a good hockey player is going where the puck is going, not where the puck was."

Contact the writer: dallabaugh@citizensvoice.com

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