Gary's Blog

Thursday, January 21, 2010

More Signs of Recovery

Wells Fargo sees signs of life in lending, but they are way ahead of their competition. Wells said it earned $394 million, or 8 cents per share, in the 4th quarter of '09, which surprised analysts who were expecting a loss of 1 cent per share. This is partly because Wells has already aggressively written down bad loans made before the downturn.

Banking analysts say that losses from failed loans historically peak six months after the end of a recession. That could mean lending will pick up again in the second quarter of this year.

Great news for Maui real estate buyers!

On the national real estate front, housing construction may be making a comeback as well. We have seen two consecutive months of growth in applications for new building permits. December saw an 11% increase to an annual rate of 653,000, a far stronger showing than economists had predicted.

If these economists would just get out of the way with their dire predictions, I think our economy could rebound even faster!

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