Wells Fargo's announcement of a record profit for the first quarter of 2009 was a welcome surprise in this year of dismal economic news. While most analysts agree that the news doesn't mean the nation's financial woes are over, it certainly appears an indicator of a changing tide. It is also proof that, at least to some degree, the government's massive bailout plan finally is producing results. Cheap lending rates have led to record numbers of mortgage applications — refinances and purchase loans — in recent months. As an Associated Press story said, “When people can borrow, they can spend,” indicating that consumer confidence may be on the rise as well. The announcement also caused the stock market to soar — not just in banking, but in other industries, too — which is great news for investors whose investments have been hemorrhaging value since late last year. Of course, the caution signs still are out. Throughout the financial crisis, Wells Fargo has been one of the nation's more robust large banks. Analysts still are anticipating losses for many other banks, both large and small. It may be premature to say we're out of the woods, but after this year's plummet, any positive news on the economic front is welcome.

Wells Fargo's announcement of a record profit for the first quarter of 2009 was a welcome surprise in this year of dismal economic news.

While most analysts agree that the news doesn't mean the nation's financial woes are over, it certainly appears an indicator of a changing tide. It is also proof that, at least to some degree, the government's massive bailout plan finally is producing results.

Cheap lending rates have led to record numbers of mortgage applications — refinances and purchase loans — in recent months. As an Associated Press story said, “When people can borrow, they can spend,” indicating that consumer confidence may be on the rise as well. The announcement also caused the stock market to soar — not just in banking, but in other industries, too — which is great news for investors whose investments have been hemorrhaging value since late last year.

Of course, the caution signs still are out. Throughout the financial crisis, Wells Fargo has been one of the nation's more robust large banks. Analysts still are anticipating losses for many other banks, both large and small.

It may be premature to say we're out of the woods, but after this year's plummet, any positive news on the economic front is welcome.