More Economic Hiccups

First it was subprime issues, than warnings over the insurers and now cracks are being seen in the commercial end of property. The fed has already done a monster drop in interest rates, what rabbit will he try now. this is from the financial times

Risk of property defaults growing
By Daniel Pimlott in New York and Gillian Tett in London

There is a growing risk of defaults on loans on commercial property this year, in a trend that could spill over into tumbling values and create more jitters in the credit world, analysts and bankers warn.

US property companies that took out big short-term loans to finance acquisitions in the past couple of years at low-interest rates are now struggling to refinance this debt, as banks curb lending and commercial property prices fall.whole thing here