By Daniel Costello

Fed Chairman Ben Bernanke dampened speculation of an early U.S. interest rate rise, saying the economic recovery still faced "formidable headwinds" and the central bank was sticking to its pledge to hold benchmark rates at exceptionally low levels for an "extended period."

The announcement signaled the Federal Open Market Committee will probably maintain its outlook for a long period of low interest rates next week as tight credit and high unemployment continue to weigh on the economy.

Nonetheless, stocks opened weaker this morning as investors seek safe-haven assets like U.S. Treasury and the dollar as signs the global economy is still struggling continue.

On Tuesday, new reports in Britain and Germany showed that manufacturing remains weak, while Japan's government approved $81 billion of new stimulus to keep its economy out of recession

Meanwhile, Fitch Ratings Inc. cut Greece's credit rating to BBB+ from A- Tuesday, highlighting "concerns over the medium-term outlook for public finances" given the weak credibility of fiscal institutions and the policy framework in Greece. The move is the latest blow to the troubled euro zone country, and pushed its bonds, banking shares and the euro itself lower.

And it's baaaaaack. According to the Wall Street Journal, house flipping has returned just four years after the bust of the American housing bubble -- but this time it's looking a bit different.


During the housing boom, millions of Americans tried to make money by buying and then quickly reselling new houses and condominiums. That kind of flipping stopped several years ago as home sales stalled amid a surge in foreclosures and curtailed lending.
Now, a different breed of flipper is proliferating: one who seeks bargains at foreclosure auctions. Unlike the boom-time flippers, the latest generation needs cold cash, lots of local-market knowledge and strong nerves.

categories: Morning Report

9:49 - December 8, 2009

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