Tuesday, October 30, 2007

Greenspan Says China's Stock-Market Bubble May Burst

Former Federal Reserve Chairman Alan Greenspan said China's stock market is a speculative bubble that will burst.

Asked if China was in a state of ``irrational exuberance,'' a phrase Greenspan made famous in 1996, the former chairman said, ``I think so,'' speaking to a conference of insurance executives in Boston today. ``When you don't expect it, it breaks,'' Greenspan said of the bubble.
His comments reprise remarks from May, when Greenspan said he was concerned Chinese equities might undergo a ``dramatic contraction'' after its main stock index at the time had jumped more than 90 percent since the start of the year.

Greenspan's latest words of concern come at a time when investors are increasing bets on Chinese equities. Yesterday, PetroChina Co. and Alibaba.com Ltd. sold stock valued at more than $10 billion.

PetroChina, the world's second-largest company by market value, raised 66.8 billion yuan ($8.9 billion) in the biggest stock sale this year. Alibaba, the operator of China's largest trading Web site for companies, sold $1.5 billion of shares in the second-biggest initial public offering of an Internet company after Google Inc., said two people with knowledge of the matter.
China's benchmark CSI 300 Index has surged 170 percent this year as the country's households invest more of their $2.3 trillion of savings in equities. The rally has given China more of the world's 10 largest companies than the U.S. for the first time and prompted billionaire investor Warren Buffett to warn that prices have risen too fast.

China's stock market value is $3.7 trillion, compared with $18.7 trillion for the U.S.
``It's easy to be carried away in the stock market when things are going very well,'' Buffett said Oct. 24. ``We at Berkshire never buy stocks when we see prices soaring.''

Greenspan also said the view of many analysts that the U.S. current-account deficit will cause further declines in the dollar isn't valid.

``We are likely to see a long-term erosion of the dollar,'' in part because ``others are doing much better,'' he said.

Greenspan said Oct. 24 that the dollar's decline to a record against the euro also reflects on a widening interest- rate gap between the U.S. and the euro region.

Hard Money Commmercial Loans are still availabe utilizing US backed securities with Five Stars Mortgage.

Thursday, October 18, 2007

The level of outstanding asset-backed commercial paper fell by $11 billion, or 1.2%, to $888.3 billion in the week ending Wednesday, the Federal Reserve reported Thursday. Asset-backed paper has fallen for 10 straight weeks, dropping by $295 billion, or 25%.

Five Stars Mortgage offers $17.5 Million dollar commercial acquisition and development project to build Sheratin Hotel.

The decline in the market has squeezed mortgage lenders of their financing. On Monday, major banks announced a special fund to help themselves refinance the securities that have been locked out of the paper market. In the most recent week, the overall commercial paper market saw outstandings rise by $1.3 billion, or 0.1%, to $1.87 trillion

Visit Five Stars Mortgage Commercial Lending on the web at http://www.fivestarsmortgage.com/commercial-mortgage/

Tuesday, October 9, 2007

PNC Completes ARCS Commercial Mortgage Acquisition

The PNC Financial Services Group, Inc. (NYSE: PNC) announced today that it has completed the previously announced acquisition of Calabasas Hills, California-based ARCS Commercial Mortgage.

The PNC Financial Services Group, Inc. (http://www.pnc.com/) is one of the nation's largest diversified financial services organizations providing retail and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.

Florida Commercial Loan provider Five Stars Mortgage, LLC continues to provide top notch service and rates to commercial buyers in Florida and Nationwide.

Visit them on the web at http://www.fivestarsmortgage.com