Have we bottomed?

Despite of the rally that we’re seeing, I believe the answer is still NO.

Two good reasons (from Yahoo! Finance):

• Commercial Real Estate Collapse Picking Up Steam
• Jobless rolls swell again as recession persists

Fear might have subsided in Wall St., but it’s still very powerful in main street.

Unemployment rate is still rising and people who are still employed wonder if they’re going to be next.

If you’re not sure whether you’ll still be employed in the next few months, would you adjust your spending? I bet you would and you’re not alone.

If people are not spending, how does this affect commercial real estate? Stores are seeing decline in sales. As this continues, many stores will have to close down shop, which means no revenue for the owner of the building leased to the store owners.

More delinquencies, affecting securities created to back them and the whole mess that we saw for the residential real estate will be repeated; maybe even worse.