The Bright Side…

Current economic news is very negative.  Unemployment is high and moving higher.  Weak consumer finances and confidence have translated to reduced consumer spending.  Each phenomenon reinforces the other, which means things are going to get worse.  So what is the bright side?  Here are a couple thoughts.

The few people that have been living within their means and saving are now in a position to buy assets at reduced prices.  This is true for real estate and stocks.  It is also true for consumer goods because a lot of products will go on sale early this year. 

Also, the government will likely be forced to take a central role in stimulating the economy.  If it does this by sponsoring research and development into new technologies for solving our energy and environmental challenges, new engines of economic growth could be discovered.  The near future looks tough, but hopefully the distant future will be better for it.  

Also, money is not everything.  The mountain biking conditions in Tahoe this weekend should be amazing.  I will be out there focusing on another positive, tacky dirt.