10 Blessings of a Battered Economy

Anxiety will be an uninvited guest at the holiday table this year. Despite a rally here or there, the stock markets are deeply depressed. Instead of getting fat on holiday sales, retail outlets are begging for shoppers and even shuttering their doors. Companies are laying off workers, and 2009 is shaping up as...well, never mind, we'll get there soon enough.

But even in a battered economy, there are things to be thankful for—especially if you're opportunistic and bold. Here are 10:

Extra work. Mounting layoffs are scary, but even during the Great Depression, the majority of workers kept their jobs. A downturn can even open doors to achievement that are closed during flush times. When workers get laid off, it often leaves projects and clients that need to be picked up by somebody. When managers look to dole out those extra responsibilities, some of your colleagues may roll their eyes. It would be smarter to roll up your sleeves and volunteer for the extra work. Once nameless drones can build a can-do reputation by taking on new duties and proving themselves as valuable utility players. Just don't get so overwhelmed that you can't perform. And for the newly unemployed, one consolation is the chance to try something totally new—say, a part-time job working as a shoe cobbler—which can add the sort of color that really sets a résumé apart later on.

Cheap real estate. The housing bust triggered the whole economic downturn, but sooner or later it will produce some juicy bargains. Home prices have already fallen 21 percent from their 2006 peak and probably need to fall 10 to 15 percent more—at least—before hitting bottom sometime in 2010, says Richard Moody, chief economist at Mission Residential. But some areas of the country will rebound sooner, and fixed mortgage rates—already attractive at just over 6 percent—could drop another half-point or so, according to Mike Larson, a Weiss Research analyst. To get a loan, borrowers will have to fulfill some old-fashioned requirements, like documenting their income, making a down payment of at least 3.5 percent, and proving they're a good credit risk. But for those who qualify—and feel confident about their job prospects—a dream home could be just around the corner.

COLA fizz. It's tiny compared with the $2 trillion retirement savers have lost in the stock market this year, but in 2009 Social Security recipients will get the largest cost-of-living boost in 25 years. That's because Social Security increases are tied to the consumer price index, which rose more than usual in 2008, largely because of a spike in energy costs. The average monthly Social Security check next year is expected to rise by 5.8 percent, to $1,153 a month, up $63 from this year. (And remember, experts expect inflation to plummet in 2009.) The typical couple who both receive benefits will get about $1,876 monthly, and some individuals can get as much as $2,323, the maximum next year. Waiting until age 70 to claim Social Security will produce even higher payouts.

Fire sales. Consumers can snag some of the lowest prices ever on LCD televisions, Blu-Ray DVD players, and MP3 players. Dan de Grandpre, chief executive of Dealnews.com, has already seen 42-inch LCD televisions on sale for $500—a "wicked price," he says. Grandpre says consumers should grab such discounts when they see them, because once the prices drop so low, retailers typically sell out quickly. Analysts expect Apple to cut prices on its iPhone and iPods, and Microsoft has slashed the price of its MP3 player, the Zune, to under $100 for the 4-GB version.