This post is part of AOL Money & Finance's Best & Worst in Money 2008 feature.
Chicken Little's warning came as good news to astronomers hoping for a better view of the sky. In the same way, not all results of the economic morass of 2008 have been disastrous, at least in the short term. Which of these bits of silver lining do you think shone most brightly this year?
Sales, sales, sales
You've no doubt witnessed the deeper discounts available during the 2008 holiday seasons as retailers, spooked by a drop in consumer spending, are trimming prices to the bone, sometimes beyond, just to keep the cash flowing. The car industry in particular has been caught between the hammer of consumer fear and the anvil of tight credit, so if you're in need of a new car, you'll find dealers, stuck with lots full of new models, ready to cut unheard-of deals.
Cheaper homes
As Lita Epstein reported here recently, houses have declined in value for seven straight quarters, which is bad news, as we've learned, for subprime mortgage holders. For those with good credit, or cash, shopping for a new house the market correction has been a godsend. Since the prices have tumbled furthest in some of the most desirable areas of the country, those retirees who don't need to sell their present home to fund a move to the sunny climes of California, Arizona, or Florida will find some great bargains. In Mountain Home, California, for example, an estimated 90% of all mortgages are upside-down, and upside for buyers shopping in a down market.
Falling gas prices
Pundits had long debated just what price gas would have to reach before America would change its driving habits. This summer, we found out -- $4 a gallon. Suddenly we were car pooling, taking fewer trips, using public transportation. As demand dropped, gas prices plummeted. And plummeted. As I write this, gasoline in my neighborhood is hovering around $1.60 a gallon, and I'm wishing I had a way to buy a thousand gallons to store against the next price increase. The drop in prices is particularly welcome during the holiday season, as millions of Americans go over the river and through the woods and down the freeway to Grandmother's house.
Lower interest rates on homes
Credit may be tight as Brooke Burke's pink two-piece, but those that qualify are enjoying bargain-basement interest rates on home loans. With mortgage terms under 6%, many homeowners are rushing to refinance. As the fed transfuses more money into Fannie Mae and Freddie Mac, the purse strings are loosening on new mortgages. Many potential buyers waiting for the market to bottom out could be lured by the prospect of saving hundreds of dollars monthly with such bargain loan terms.
What do you think is the top upside to the down economy?
Share the reasons for your silver lining pick in the comments, or let us know about any contenders we overlooked. Also be sure to see the rest of the Best & Worst in Money 2008.



Reader Comments (Page 1 of 1)
12-05-2008 @ 7:12PM
Ben said...
That's almost like saying getting thinner is a silver lining of having cancer.
It's a symptom NOT a silver lining.
12-05-2008 @ 8:00PM
Kent said...
Let's hope some of these "symptoms' dig us out of the recession. If it doesn't, our goose is cooked for a long, long, time.
12-06-2008 @ 4:43AM
BHarrison said...
Ben's analogy is rather apt to it all . . . "getting thin from having cancer" may look good initially; but it isn't a healthy situation. When businesses do not make a "reasonably healthy profit" on their goods and services, then some employees are going to become unemployed eventually. It's a matter of "balance"; and things are getting to be substantially out of balance.
12-08-2008 @ 12:47AM
rey said...
high home prices are to blame for it all, people just have money to pay for their mortgages, it was inevitable that this would occur. prices should drop to prior 911 then ennact laws to regulate appraising, loan institutions etc..
2-09-2009 @ 11:15AM
Niall said...
For my girlfriend and I this has been a golden, never mind silver, lining. Downsized, making low wages but having some assets we now find that we can buy a home and pay cash for it. We had thought that we would never again be able to do that.