Wednesday Morning Comments

Seems like the markets are in for another shaky day, after recouping 3/4 of their early losses yesterday on a 3/4 point rate cut, it looks like another tough start for the markets today. The markets also seem to be indicating that the fed is likely to cut rates another 1/2 point next Tuesday. Whether or not that happens remains to be seen. Again, given the relatively stable state of our (Manhattan) real estate market, lower rates will be a big plus down the road, however, major problems in the European markets would slow down foreign investment in our market. I think everyone needs to take a deep breath and put it all in perspective. When the markets have dramatic drops, the media works itself into a frenzy; when they rebound or stabilize the coverage diminishes. Usually when a market corrects, an overwhelming sense of negativity and capitulation must be achieved before the market rebounds. Needless to say, at this point we have plenty of negativity.
Back with links tonight.