$60 Million in New Tax Credits for Montana

Of the $3.6 billion of New Tax Credits released by the U.S. Treasury, $60 million of that is designated to MCDC (Montana Community Development Corporation), located in Missoula, MT.  These credits allow MCDC to offer tax credits to local companies looking to expand or start small businesses, who in turn get a credit against their federal income taxes.  This is a great resource for Montana companies to put a plan in place and expand or create more jobs.  I think with the slow-but-steady increase in business and real estate last year, and the amount of use these credits are put use, we have a reason to feel optimistic going into 2012.  This allows the economic ball to continue rolling, and it creates more ways for dollars to be brought into the state and traded within our local companies.

Gas going to $5/gallon??

Former Shell Oil CEO John Hofmeister on why gasoline may jump to $5/gal and how he hopes he's wrong, but afraid he's right.  Some view this as a "scare" number and won't affect most consumers, but Mr. Hofmeister explains that a reduction in oil production and the amount of oil being sent overseas will push this number higher.  President Obama's green energy agenda and taxes are causing oil companies to be in favor of less oil in America and exporting it out of the US, thus driving the price higher.  China's growth has been a major factor as well as India's demand.  Other factors affecting the price of gas: crude oil production, cost of crude oil, availability of crude, closure of refineries in America on the east coast.

Buffett's view on investments, what is the right play today?

If you like following finance or you enjoy knowing Warren Buffett's outlook on things, this is a great article.  It breaks investments down into three main areas and pits them against themselves.  The winner?  Investment in productive investments (real estate included).
http://finance.fortune.cnn.com/2012/02/09/warren-buffett-berkshire-shareholder-letter/?iid=SF_F_LN

Consumer Price Index (CPI) stays level

The Bureau of Labor Statistics released their reports on CPI, the gauge of inflation on goods and services, mid January.  January's report will be released on 2/17/12 http://www.bls.gov/cpi/#news  Since July, CPI has eased after pushing higher earlier in the year.  Some of the practical uses of CPI are tied to commercial leases to compensate the lessor for inflation during the course of a lease.

Although the national markets are slow to recover, Western Montana-specifically Missoula, MT-has seen great activity since last fall.  Downtown lease space inventory is shrinking and multi-family is seeing a strong surge.  Not only are class A and B properties selling well, but multiple large projects (75 units-200 units) for new construction have already broken ground to fill some of Missoula's rental space shortages.