Out With the Doom & Gloom of 2008...Good Things Are Going To Happen In 2009.

I for one am glad 2008 is over, but maybe for different reason than most. Day after day all I hear is bad economic news. Doom and gloom all day long. Everything from the economy has been in a recession for a year, 2 million jobs have been lost, the S & P 500 has plummeted more than 40%, foreclosures are up, banks won't lend, credit is being frozen. When does it end? Let's hear some good news for a change.

For me 2008 ended with good news. Jobless claims fell below 500,000 a level down from its 26 year high. Most might say, "So what?", but I say, "Something is better than nothing," and good news is better than bad news.

I know most of you love to fulfill your pain bodies with more doom and gloom, but we keep that sort of thing to minimum around here. The economy will get better this year.

It's probably going to feel like hell for at least the first quarter, but we will start to see a turn around. I feel especially if the stimulus package is significant enough it will bring confidence back to consumers and get them spending again.

Although, unemployment may reach 8% next year that means 92% of the population still has a job. People are just so scared they are going to loose their job they aren't spending.

Both Barbara Doeser, from Bank of America, and Joe Liro, from Stone & McCarthy Research Associates, have stated that we should get tentative signs of recovery by late 2009.

Something else to remember is this a recession not a depression. This is probably the worst we've had since the Great Depression, but this is no where near 1929 people.

Joe Liro predicts we will probably see banks become more willing to lend by the end of the first quarter.

Another good thing is the Federal Reserve has been doing everything they can from preventing a full blown depression.

To some it seems like the Federal reserve has done nothing, but its moves will need some time to take effect. Bernake and the gang have been pulling out all the stops. You can accuse them a lot of things, but just standing by isn't one of them.

First they have cut interest to almost zero. This is the lowest it has ever been. Soon this will help boost corporate profits and then make companies feel more comfortable hiring again.

The Federal Reserve has issued several other lending programs to help move the credit markets. Some are starting to work particularly with mortgage rates, which are at a 37 year low.

And as we have posted previously, Barack Obama and his gang are expected to propose a massive stimulus package geared toward job creation and infrastructure building. If that goes well it will add the lift in economy. I feel if done right the effects will kick in sooner than later.

So quit being a "nation of whiners" as former John McCain adviser Phil Gramm declared. Cheer up, start the new year right, and quit looking for doom and gloom. Quit being so serious and put a smile on that face of yours and cheer up, happy days will be here again.