In reading my report from Wachovia Economics Group today (for Feb.20, 2009), I quote the following:  “Although there is not much good news at present, there are  a number of forces that sooner or later will stabilize global economic activity and eventually lead to recovery.  First, short-term interest rates in most countries have declined significantly.  Although the ususal channels of monetary transmission may be impaired somewhat at present, lower interest rates should evenutally  help.  Most countries have also announced fiscal stimulus plans that will kick in over the course of the year.  In addition, lower energy prices will help.  If oil prices average $50/barrel this year (WTI is below $40/barrel at present), then roughly $1.5 trillion worth of  purchasing power  will be transferred from oil-producing nations, which tend to have relatively high propensities to save, to oil-consuming nations, which tend to have higher propensities to consume.   This transfer of purchasing power should help to eventually stabilize global economic activity.”

Alexandria, MN Housing:  Been a long winter, the $8,000 tax credit should be of some benefit to first-time homebuyers.  That’s a sizable credit, I don’t ever recall a Tax Credit being given to housing that didn’t have to be paid back before.  I have seen it in the Ag Industry and for equipment purchases, but not for housing.  If you are in the market for a home, and haven’t owned one in the last 3 years, you may qualify for this fantastic benefit.