Dean Kirkland Aug. 10 (Bloomberg) -- The collapse in commercial real estate is preventing Federal Reserve Chairman Ben S. Bernanke from declaring the economy and financial markets are healed.Property values have fallen 35 percent since October 2007, according to Moody's Investors Service. That's making it tough for owners to refinance almost $165 billion of mortgages for skyscrapers, shopping malls and hote...
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Warren Buffett, of Berkshire Hathaway fame, currently ranked by Forbes magazine as the richest man in the world, recently told Bloomberg.com, “The worst of the crisis in Wall Street is over.” However, “in terms of people with individual mortgages, there’s a lot of pain left to come.” Mr. Buffett’s conclusion was echoed by Alan Greenspan, former Federal Reserve Chairman, who is reported to have also said that the worst of the credit crisis is over.
While the U.S. Federal Reserve is expected to cut its Federal Funds target rate to a record-low 0.5% at tomorrow’s (Tuesday) meeting of the Federal Open Market Committee, the European Central Bank (ECB) is signaling a reluctancy to drop its key rate below 2%.
I often wonder if market reports matter when most investors are too busy and distracted to pay attention. Investors stay-tuned for the closing market averages; if the market is up, all is right with the world. If the market is down, "I'm in it for the long haul." If the market cascades unexpectedly, investors second-guess investment decisions.
Declining dollar gives overseas investors opportunity to buy US stocks at bargain rates, write Michael Tsang and Adria Cimino.Investors outside the US are purchasing companies in the Standard & Poor's 500 Index at the cheapest valuations on record, their buying power boosted by a seven-month decline in the dollar. The S&P 500 is priced at 19.9 times earnings, the biggest discount to the MSCI World Index of 23 developed countries since May 2003, according to monthly data compiled by Bloomberg.









