We've all felt the reverberations of the economic downturn. For the most part, the collapse of the financial markets resulted in disastrous consequences to the broader economy. While the most visible affects have been extremely negative, the reality is that the ongoing impact of the downturn can be classified across the spectrum. Believe it or not, there are even some positive changes that continue to influence the way banks and financial institutions conduct business. Here's my take on a few of the major impacts to date.

The Ugly: The continued uncertainty in both regulation and policy has contributed to the sustained depression of real estate values, which further exacerbates market woes. Without a doubt, this uncertainty acts as a deterrent to growth and therefore to any type of sustainable recovery. Primarily, unknown outcomes of regulatory reform and fiscal policy have caused lenders additional risk aversion resulting in a lack of stimulation to local economies and scarcity of liquidity in the capital markets. Both businesses and consumers in general are reluctant to spend money until policy is clearly defined and outcomes are more certain. These perpetual market fears have turned into a storm of doubt and reaction contrary to growth or recovery.

The limbo that exists in economic policy needs clarity, and the sooner the better. Questions regarding taxes, financial regulations, banking fees and even the volatility of the stock markets cause a relentless sense of insecurity and lack of confidence. Any reduction in uncertainty would potentially result in hiring and spending.