WILL THE RECENT FED RATE CUT RESTORE LIQUIDITY?

Cutting the short-term interest rate again could put the US back on its feet or just polish the brass on the Titanic. Once again, the weekly poll numbers went up and down, but 44% of our readers think the Federal Reserve should keep cutting the rates. About a third don’t think the cuts will hurt, but 23% think the market may have been KO’d. We spoke about the cuts with Dan Fasulo, managing director of Real Capital Analytics:

“New York’s a very interesting place and it certainly haven’t been impacted the same way other markets around the US have been. It hasn’t been hit as hard by the credit crunch because of the diversity of capital sources that not only buy properties here but also lend money for acquisitions and new developments. We’re just fortunate here in New York to have such a diverse source of capital groups that want to be involved in our commercial real estate. It certainly helps to soften the blow in periods of economic turmoil.

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