Property in Spain, Tenerife

The Federal Reserve has cut the federal funds rate to 4.25% with the implication that further cuts may come if the housing downturn and mortgage lending crisis deteriorates. Commercial banks have responded by reducing their prime lending rate to 7.25%; the lowest in two years. Wall Street remains volatile and indeed the Dow Jones industrial average lost 200 points on digesting the news.
The fed is walking a tight rope trying to maintain a delicate balace between modest growth and a rescession! During 2008, all going well, rising demand for houses driven by lower borrowing rates should push the US economy progressively forward. This has to be good news for everybody. The Bank of England appears to be moving along similar lines.
Incidentally, the US market has been showing increasing interest the the Canary Islands, particularly Tenerife, in recent months. The Canary Islands unique investment tax regime, their strategic location between Europe (ie the EU) and Africa and, of course, Tenerife's well proven attractivenes as a holiday/retirement home destination are all factors creating increasing interest in the US market.
What if there was a Channel Tunnel, linking Europe and Africa, in the Straits of Gibralter!
www.pci-international.com