New U.S. Real Estate Crisis threatens Global Economic Condition
Baech (Switzerland), February 3, 2010 – New doom is threatening after the consequences of the subprime-crisis have hardly been overcome: U.S. commercial property could be the cause for a new sub-prime crisis from 2010 onward. The whole extent can hardly be estimated but also affects European banks.
According to Moody’s current CPPI-Index, the prices of U.S. commercial property tumbled by 34.8 percent since 2007. This is reasoned due to numerous insolvencies from 2009, which raised vacancy rate as well. “Of course, this puts a negative impact on rental income and book value of certain real estate,” annotates Bernd M. Otto of Investment24 Research. “Many debtors face serious problems because in some cases the home loan’s value is higher than the fair value of the real estate. If rental income does not even cover the interest rate of the home loan, it will be difficult to stop the downward spiral,” adds the analyst
The Banks, on the other hand, have partly packed these U.S. home loans into securities, so-called Commercial Mortgage Backed Securities (CMBS). This possibility to embellish financial statements draws an analogy to 2007’s sub-prime crisis. If future development will continue in a similar manner, a new wave of write-downs would hit banks hard – not only in the U.S.
“At the peak of the boom, some European banks co-financed various major projects. In addition, a lot of investors are invested via U.S. open property funds,” warns Bernd M. Otto, CEO of Investment24 AG. According to Kenneth Rosen, professor at the University in Berkeley, the whole extent of the commercial property crisis even threatens the whole financial system. A new write-down wave would tighten the shortage of the credit offer for companies – with serious consequences for the global economic condition. At least a ray of hope appears with recent news from the Fed. The Federal Reserve announced to buy CMBS soon in order to relieve the banks. Nevertheless, the ongoing development in 2010 may show how much the crisis will stress the global economic condition in future.
Investment24 AG, based in Switzerland, provides quality information about interesting opportunities on world stock markets. The company not only demonstrates a positive performance in excess of 350 percent since July 2007, but it also offers a high degree of transparency. This is in sharp contrast to other stock market or financial services newsletters. All transactions are explained in detail, and provided with background information. These results are achieved with professional risk and money management. CEO and editor of the stock market letter is Bernd M. Otto, and he is supported by an experienced staff.
Seestr. 67, 8806 Baech, Switzerland
Phone +41 44 8870091
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release New U.S. Real Estate Crisis threatens Global Economic Condition here
News-ID: 119805 • Views: 776
More Releases from Investment24
U.S. Commercial Property Crisis Let Banks Die
U.S. Court of Inquiry Report Shows the Extent of the New U.S. Commercial Property Crisis Baech (Switzerland), March 10, 2010 – After the strong capital gains of the last days the beginning of the trading week was calmly for U.S. indices. Obviously, the market participants do not completely evaluate the threatening news from the banking sector yet. However, this could change soon as the outcome of the past commercial property
Thrilling Currency Market: After Euro Now Pound Focused
Euro Shows Stability After Good Economic Data, British Pound Could Continue to Decline Baech (Switzerland), March 4, 2010 – Indeed, the euro decreased to a new nine-months-low on Tuesday morning but due to the encouraging economic data, these losses have been outweighed over the week. However, the decline of the British pound could continue, currency traders increasingly perch on devaluation of the sterling. Moreover, bad economic outline data and political
Investment24: Upcoming Financial Information Flood Requires Overall View
Only Certain Key Data Serve as Indicators for an Economic Recovery Baech (Switzerland), February 24, 2010 – The debts crisis of the Southern European countries has taken a back seat for now due to a deluge of upcoming company accounting numbers and economic condition data. In Germany many DAX-groups will publish their financial statements on Thursday, key data concerning the economic activity from Europe and the U.S. will round out the
Euro-Depreciation Because of Greek Creative Accounting
Investment24 Research Underlines Indeed Advantages for EU Exports Baech (Switzerland), February 17, 2010 – The imposed obligations of the euro zone’s finance ministers toward Greece have hardly been published as further findings rock the boat. Apparently, the U.S. bank Goldman Sachs has helped the Greeks to cloud the real amount of national debts already years ago. The financial markets reacted with a continuous depreciation of the Euro. However, European companies with
More Releases for Switzerland
Switzerland Agriculture Market | Switzerland Agriculture Industry | Switzerland …
The Agriculture has always been of prodigious importance for Switzerland, as feeding the world’s prime population is not a calm task. The Switzerland government has been supportive the agriculture industry with a sum of policies, trying to stabilize the output and seeking techniques to ensure the division is growing healthily and sustainably. The Switzerland federal government has been decidedly supportive of the agriculture for decades, and there is extensive political
Switzerland Agriculture Market | Switzerland Agriculture Industry | Switzerland …
Switzerland Agriculture, land used for agriculture amounts to 37% of the overall space. Regarding one third of the agricultural land is found within the midlands. Pastures and meadows account for the most important a part of the complete agricultural land. Consequently, the bulk of the farms focus on stock agriculture, whereby dairy cattle farming dominate. The foremost vital land-utilization category in cultivable farming is cereals. The Swiss soils, terrain, and climate don’t
Agrochemicals Market in Switzerland
ReportsWorldwide has announced the addition of a new report title Switzerland: Agrochemicals: Market Intelligence (2016-2021) to its growing collection of premium market research reports. The report “Switzerland: Agrochemicals: Market Intelligence (2016-2021)” provides market intelligence on the different market segments, based on type, active ingredient, formulation, crop, and pest. Market size and forecast (2016-2021) has been provided in terms of both, value (000 USD) and volume (000 KG) in the report. A
Proton Therapy Market Forecast in Switzerland
Switzerland has one of the old proton therapy centers in Europe and was established in 1984 and there are so many recommended proton therapy patients from other parts of Europe coming for their treatment. The old proton therapy center at CPT, PSI, Villigen was further renovated with technological advancement in 2010 and again in 2013. Switzerland Proton Therapy Market is expected to grow thrice from its present market in 2016.
Biscuits Market - Switzerland Industry Analysis 2024
Growing Tourist Arrivals Translate to Higher Biscuit Sales in Switzerland A constant rise in demand for healthy and nutritious product varieties, with low-calorie and sugar-free products gaining high consumer preference, and the demand for convenient snacks are some of the key trends impacting the overall development of the present-day Switzerland biscuits market. The rising numbers of international and domestic tourists in the country and steady growth in the retail sector post
DEAG strengthens market position in Switzerland
• Cooperation agreement entered into with ABC Productions AG • Business expansion mainly for Rock/Pop, Family Entertainment and Corporate Events • Executive Board expects more than doubling of results versus prior year for 2013 Berlin, June 03, 2013 - DEAG Deutsche Entertainment AG (ISIN DE000A0Z23G6) strengthens its market position in Switzerland through a cooperation agreement between the Good News Group and ABC Productions AG. This cooperation agreement regulates the joint approach of the two partners at