It's a predictably quiet MLK day here in real estate as many have run for the hills literally for the holiday weekend. The only breaking news here today is that equity investors overseas are running for the hills figuratively, as Asian and European markets are down anywhere from 3-7%. While most of those markets have come off their lows, dow futures for tomorrow's open show a potential loss of 450 points. It is widely expected that the fed will lower rates by 1/2 of a point at the end of the month, however, a large sell off in equities may prompt the fed to act sooner, perhaps as early as tomorrow morning. World markets are concerned about further asset write downs, a byproduct of the sub-prime debacle, and worry that the US economy is slipping into recession. Needless to say, nobody seems impressed by the stimulus package that the bureaucrats in Washington are working on.
The take here is that rates will be lower near term, and the dollar is likely to slide further. These two factors have driven the NYC real estate for the past year, and should continue to be positive contributors. Meanwhile, an aggressive fed could act to stimulate the economy to lessen the odds and or length of a recession.
Stocks Plunge In Europe And Asia On US Recession Fears (NY Times)
Coops Reap Unexpected Bonanza (NY Times)
NY Giants Shock Green Bay To Reach Super Bowl (NY Post)
Letter Grades For NYC Schools Raises Parents' Ire (Newsday)