Thursday Thoughts

– June was a whale of a month for the property tax lending business. I know I have said this before, but I am lucky to have great employees, a fantastic banking relationship and first rate customers.

– My article on Participation Agreements was published in Bankers Digest. That is a great publication. Very easy to work with. And thorough. Here is a link to the publication.

– Commercial real estate will endure much more pain before it starts to turn a corner. Here is a piece in Business Insider that you must read if you are interested in the CRE industry. CMBS (commercial mortgage backed securities) lending averaged about $70 billion annually between 2000 and 2004. In 2007 that amount more than tripled to $248 billion. Ninety percent of those loans were interest only or negative amortization loans. In April of this year the 60 day delinquency rate was at 7% which is up from 1.8% in April of 2009. The dollar figure for delinquent CMBS loans stood at $54.65 billion in April 2010. The banks are not forcing the issue with the borrowers yet. This strategy is called “extend and pretend.” There will be a day of reckoning. But as one professional described “noone wants to try to catch a falling knife.”

-I was once a loyal Dell customer. I believed in their low cost business model and owned stock (which went through several splits). When I bought a lemon of a Dell in 2005 I started to sell my Dell stock. I’m sure glad I did. Read this article and you will see that Dell is not near the company it used to be.

– BP just sent this bill to Anadarko for it’s share of the gulf cleanup. Ouch!

– Woot was acquired by Amazon so they made this spiffy video announcement. This is worth watching if for no other reason than to see how they find words to rhyme with “Amazon.”


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