We've all felt the reverberations of the economic downturn. Forthe most part, the collapse of the financial markets resulted indisastrous consequences to the broader economy. While the mostvisible affects have been extremely negative, the reality is thatthe ongoing impact of the downturn can be classified across thespectrum. Believe it or not, there are even some positive changesthat continue to influence the way banks and financial institutionsconduct business. Here's my take on a few of the major impacts todate.

The Ugly: The continued uncertainty in both regulation andpolicy has contributed to the sustained depression of real estatevalues, which further exacerbates market woes. Without a doubt,this uncertainty acts as a deterrent to growth and therefore to anytype of sustainable recovery. Primarily, unknown outcomes ofregulatory reform and fiscal policy have caused lenders additionalrisk aversion resulting in a lack of stimulation to local economiesand scarcity of liquidity in the capital markets. Both businessesand consumers in general are reluctant to spend money until policyis clearly defined and outcomes are more certain. These perpetualmarket fears have turned into a storm of doubt and reactioncontrary to growth or recovery.

The limbo that exists in economic policy needs clarity, and thesooner the better. Questions regarding taxes, financialregulations, banking fees and even the volatility of the stockmarkets cause a relentless sense of insecurity and lack ofconfidence. Any reduction in uncertainty would potentially resultin hiring and spending.