Jan 1, 2009 8:09 pm US/Eastern
Watch For 3 Signs Of 2009 Economic Turnaround
BOSTON (WBZ) ―
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Traders work on the floor of the New York Stock Exchange moments before the closing bell December 22, 2008 in New York City.
Spencer Platt/Getty Images
With stocks in free-fall, 401Ks vanishing and home prices plummeting, many are happy to close the book on 2008.
But what's ahead?
There three things to look for in 2009 that could signal a turnaround for the economy.
No. 1: CONSUMER FEAR
The downward economy and unemployment are scaring people right now.
That is the No. 1 thing to watch in 2009 -- consumer fear.
Since September consumers have been frozen in fear. With all the bad economic news piling up at the end of 2008 it is hard not to be.
But one Boston economist says that may be starting to ebb and some agree.
"I think confidence will come with the new year," one consumer told WBZ. "Everybody is ready for a new administration."
No. 2: LENDING
The next key to a better 2009 is lending and can we get some. Good news there, too. Mortgage rates are now in the 5 percents.
GMAC is offering zero percent financing.
Two bright spots for those who need to borrow in order to buy -- a huge hurdle at the end of 2008.
No. 3: SPENDING
Lastly, will consumers actually go out and spend?
Consumers may be able to get the loan for the car, but will they drive off the lot?
Roger Brinner, economist with the Parthonon Group, says people need cars. They've waited and now gas prices are low. He says at some point soon they will buy.
The same goes for houses, which are now more affordable than ever.
UNEMPLOYMENT STILL A PROBLEM
One bleak spot is the high unemployment rate.
Those numbers are expected to go way up in 2009. But experts tell WBZ even if they go from six to nine percent unemployment, that's still 90 percent that are employed and that are hopefully spending.
The question is, will people stay fearful and worried they will lose their jobs?
SOME BRIGHT NEWS
After the worst year for the market since 1937, the DOW, the S&P and the NASDAQ were all slightly up in December.
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