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Best & Worst in Money 2008: Best silver lining to the recession

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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.

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Last updated: November 22, 2009: 07:01 AM

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