Randoms: The Monday Thump!

By Todd Harrison  JUN 22, 2009 12:30 PM

A bear scare greets a slinky summer session


The Following Thought Was Offered by Adam “Tush” Heine on Today’s Buzz & Banter:

“The other day I received information from one of the major financial institutions on a change in process on how they deal with non-performing real estate assets. Historically, when they had a non-performing loan underwritten on a real estate asset they turned to the market and sold off that note. It seems the market for non-performing loans has dried up to such an extent that the bank is taking on the actual property and marketing it at a discount to the marketplace as a method of disposal.

I’m not going to even begin and dissect what ramifications this might have to the banks or banking sector if this becomes convention. However, if one is in the market to scoop up what is deemed to be cheap real estate for investment purposes, I would recommend proceeding with selectivity, patience and a buyer beware mentality, as the market might get flooded with bank dispositions that result in an overhang and weight on any remote possibility of capital appreciation.”

Hit 'em hard, Minyans, and remember--let's be careful out there.


Position in aapl