New season is emerging!

The Seasons Change. The President Changes. (Tomorrow!) So this quote is on point:

"LIVE EACH SEASON AS IT PASSES." Henry David Thoreau.

In the Markets: Last week saw the start of earnings season for the fourth quarter of 2008, and this is likely to be one earnings season everyone hopes passes quickly.

The beleaguered banking sector was in the spotlight throughout the week, as Citigroup reported an $8.29 Billion loss, completing its worst year ever since its inception in 1812. Bank of America also lost $1.79 Billion in the fourth quarter, making 2008 the bank's first yearly loss in 17 years. And the news extended overseas as Deutsche Bank, which is Germany's largest bank, warned of a fourth-quarter loss of $6.3 Billion.

There were a few bright spots to note during the week, however, as JP Morgan Chase surprised the market with an earnings report that beat expectations...it's been awhile since a financial Stock actually surprised to the good side! In addition, Bank of America received a lifeline of $138 Billion from the government's $700 Billion rescue fund to help absorb their purchase of Merrill Lynch.

And in inflation - or lack thereof - headlines, the Consumer Price Index for 2008 was reported the lowest since 1954, indicating that inflation is definitely not a threat at this time.

Lending it the part that needs to be resurrected in time to keep the wheels of commerce and the real estate industry moving ahead. They have changed many of the systems in recent months to enable the resale of loans to happen in new more scrutinized fashion. But that also has other troubles for the not so standard property. If it does not fit the forms and the standard check boxes of the new resellers marketing program, it will not qualify for a loan and therefore further depress the real estate market with unsellable inventory clogging the marketplace.

As I learn more on the lending situation I will post the details. Remember, while Bonds and home loan rates are still at historic levels, there will be some volatile changes due to the many variables affecting the markets.

For now, lenders are requiring serious cash for your down payment on a home or income property. No lender wants to see a property go upside down on a further drop in value. But likewise for the Contrarian among us it may be a good time to pick up a cheap deal.

Glad to be of help.

Kieth
www.REList.net