Palatine Financial sees some hope on the horizon for beleaguered US Housing but issues caution.

June 30, 2010 - PRLog -- ROME- Palatine Financial reports that housing will play a crucial role in the direction of the global economy and financial markets, just as it triggered a two-year recession that erased millions of jobs worldwide, and $37 trillion from the world stock markets, it may position itself to do the opposite and continue to revive the world economies that are beginning to pick up.

"There is real destruction and panic when housing demand declines in the U.S. because to most American families a home is their most important asset — a very significant part of their wealth and retirement savings" said Dabinsky of Palatine Financial in a phone interview with analysts and board members. "When they feel insecure about their homes value, there obviously is a very big impact on their quality of life." Dabinsky finished.

Two reports last week showed home sales reversed course in May after getting a bump higher from government stimulus programs including a buyer tax credit. New-home sales fell 33 percent to a record low annual pace of 300,000, the Commerce Department said. Purchases of previously owned homes unexpectedly dropped 2.2 percent, according to the National Association of Realtors (NAR).

Theo Dabinsky of Palatine Financial however advises that another housing recession is likely. "We think the consumer is going to have a tough time in the second half," he said in an interview with Bloomberg News. "We think the second quarter is going to be very tough for other players in the capital markets, and we remain cautious on the banks at large. We think prices have to come down further because you have an enormous looming overhang of supply," Dabinsky said. "You can’t say things have bottomed."

# # #

As a full service wealth management and financial services group, Palatine Financial is dedicated to providing individualized services that comprehensively meet all of our clients’ needs.
For more information, please contact Jason Mancini at +39 06 9926 6524 or visit http://www.palatinefinancial.com