Every cloud has a silver lining.
And when it comes to our wounded economy, you might even be able to take your silver lining to the bank.
Amid an avalanche of bad economic news — unemployment has climbed to 7.6 percent, according to the Department of Labor — there are a few hopeful signs and bargains for savvy consumers.
These include low mortgage rates, still cheap energy costs, stable car prices, travel bargains, falling personal debt, dropping construction costs and even a retreat in some retail prices.
"There are a lot of good things out there right now, good things for the country," says Lloyd Hamm, chief administrative officer at Eastern Bank. He adds, "I'm the eternal optimist."
Hamm cites a boom among banks refinancing customers who want to take advantage of interest rates hovering near 5 percent on a 30-year, no-points mortgage. Eastern Bank did $30 million in business for November, half in refinancing — but $100 million in January, 80 percent of it in refinancing.
Further, Hamm points out, the dramatic fall in home prices bedeviling some has been a blessing for others. Citing decades of experience, he says, "I don't think housing has ever reached this level of affordability. ... It's a huge positive for young people."
In Massachusetts, Hamm says, the jobless rate is only slightly higher than the average during the Clinton Administration. "And those are considered good years. ... I've heard people say this is the worst economy since the Great Depression. Unemployment was at 20 and 30 percent during the Depression."
Bruce Webb, an economics professor at Gordon College, sees pluses that transcend the dollars and cents.
Many of the jobless are back in school, retraining, learning, he observes. "In the long run that should be a good thing." Energy prices are creeping higher, but still remain low, a savings for everybody. "That's money they can use in other areas."
Those still in the workforce, Webb adds, are paying down their debts. "We're being told to spend money," he says, "but that's not what many people needed to do."
Lower housing prices have been a plus for Gordon College, he notes, which has had problems attracting young educators who can't find affordable housing.
Finally, Webb sees people rethinking values. "They realize you don't have to spend a lot of money to be happy. They appreciate simple things," he says, "like time to be with family and friends."
Bringing in car buyers
While the car business has suffered, dealers have responded with consumer-friendly marketing strategies. Hyundai promises to take back cars if customers lose their jobs.
Jason Fontes, sales manager at Ira Toyota in Danvers, cites his own company's improved service and more enticing financing, including $4,000 in rebates for SUVs. Potential customers are more cautious, however. On average, they take a month to decide on a purchase, rather than days as in the past.
New car sales might be off considerably, but "we're up over last year (in used car sales)," Fontes says. Moreover, prices for old models are stable despite rising demand, thanks to a backlog of inventory.
Credit is available, says an optimistic Fontes, and all this is having an impact. More people are coming through the door.
Salem Chamber of Commerce Director Rinus Oosthoek finds it's a good time for his businesses to build.
"If you want to do construction," he says, "everyone's looking for jobs." In Marblehead, for example, bids for a repair job at the Village School recently surprised officials at $5 million below a $16.3 million estimate.
And if you're able to travel, you'll find bargains galore.
Joel Abramson of Flagship Travel in Marblehead says, "I haven't seen discounts this deep in the 26 years I've been in the business." For example, he points to tickets to the Masters Golf Tournament. Ordinarily they've gone for $2,500 just to see the match.
"Now it's $1,500 to $2,200 for transportation, lodging and the event," Abramson says. The same sort of bargains are available for tennis buffs at Wimbledon in the United Kingdom. Previously, tickets were all but unobtainable.
What's more, adds Flagship office manager Barbara James, the exchange rate has improved markedly.
Handyman specials
Handyman Ralph Poillucci of Salem offers another example. He runs three businesses and pronounces himself flexible when it comes to estimates. "I used to get six to eight phone calls a day," he explains. "Now I'm not getting any phone calls."
Poillucci paints signs and cars at a business called "Visual Imaging; Signs and Truck Lettering," based at the Salem State College Enterprise Center. Students are being offered a discount. Meanwhile, he no longer charges for estimates at his bathroom and kitchen remodeling business.
Consumers can also find bargains at the Witch City Consignment Store. "Last month," says owner Joe Bayles, "a 50-percent-off sale helped us a lot."
It's a strategy he's repeating in an effort to sell more used furniture, jewelry, CDs and paintings. "Just tell people you can come to the Witch City Consignment Store and get quality stuff for half price."
The big fear for many is that the economic slowdown will worsen. Yet, interpreting the blizzard of numbers is difficult. In money matters nothing is as simple as it seems. "Almost anything that is good for some segment of the economy," observes Webb, "is bad for somebody else."
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