Didn't quite know where to put this +here comes the blood+

[Owen Hogarth]

http://online.wsj.com/article/SB125167422962070925.html?mod=rss_whats_news_us

an article from the wall street journal about the troubles coming around the corner for commercial real estate.

I personally think this will be the best time to buy commercial properties, not random speculative buying but purchase properties with strong income that are way under valued.

Its exciting and sad at the same time, during great economic turmoil more millionaires are made but that's because the wealth flows to the top, while thats good for the top, it's not so good for everyone else, but alas that's the system we live in and we have to play by the rules unless we sit on the bench and play Monday morning QB.

I say go out there and build some security for yourself and your family and friends.

[Louis Bergman]

It is a sign of the madness of the time we live in.
Read carefully what it says.

By the end of 2012, some $153 billion in loans that make up CMBS are coming due, and close to $100 billion of that will face difficulty getting refinanced, according to Deutsche Bank. Even though the cash flows of these properties are enough to pay interest and principal on the debt, their values have fallen so far that borrowers won't be able to extend existing mortgages or replace them with new debt.

The very first task of a Banker is to do all he can to turn a bad loan into a good loan. What these guys are saying is that as a result of a rule that made sense in a different era under different circumstances someone is knowingly going to pull the trigger and unnecessarily destroy over $100 billion in capital.
So even though these properties are healthy and performing excellently, they will be destroyed.

I am so very glad that I am now a retired banker, as I cannot see myself in good conscience functioning in a climate where a sub mediocre bureaucracy blindly enforces a rule because it's there. And the saddest part is that the press, the players and the public just passively sit and watch while it happens.
How can anyone in good conscience foreclose on performing properties?

The people who enforce this crime against capitalism should be banned to 10 years volunteer work doing micro lending in the poor villages of Bangladesh and Vietnam.
Hopefully they will sober up and return with a healthy respect for what was build up by hard work to a level that it is still the envy of the free world.

Sorry for the rant guys.