Star News

The respective Finance Ministers of the world's Group of Twenty (G20) recently called for “credible” plans to withdraw economic stimulus programs as the international economic recovery gains strength; and as Greece's attempt to avoid default emphasizes the risks posed by its country's mounting government debt.

The G20 accounts for approximately 85% of the world's GDP, and its 19 members consist of the following countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, the Republic of Korea, Turkey, the United Kingdom, and the United States.

Earlier this week, Greece appealed for emergency loan funding following a surge in its borrowing costs, underscoring the need to convince investors that order will be restored to Greece’s public finances. The International Monetary Fund reacted by calling rising government debt “one of the biggest threats to the world economy.”

The G-20 asked the IMF to conduct further research on how banks can cover the cost of future bailouts, papering over a split as to whether or not a tax on risk-taking should be imposed; and reiterating a plan to develop rules by the end of this year to raise the quantity and quality of bank capital [with the intention of implementing such policies before 2013].

Greece's fiscal turmoil may serve as a warning to many individual governments that they will soon need to pare down budget deficits swelled by lower tax revenue and curtail spending spurred on by stimulus programs that ballooned during the crisis. The IMF estimates the debt of advanced nations will reach 115% of GDP by 2014, up from 80% before the financial crisis' and close to the postwar record.

The group's Finance Ministers will next meet in Busan, South Korea on June 4th and 5th of this year, before its respective leaders convene later that same month in Toronto. We will keep you posted…

$700,000 Industrial Loan Quote

Penstar recently obtained a $7,000,000 refinance loan quote for a 2-tenant industrial property located in Los Angeles. The 300,000 square feet property is fully occupied and is currently owned free and clear. The quote reflects a 10-year term fixed at 6.35$ to a 68$ loan to value on a 30-year amortization schedule. To learn more, please contact Steven Hamermesh at (818) 883-9609 or Hamer@PenstarAdvisors.com.

Helpful Humor

The best antidote for those challenging transactions is to take a moment to have a hearty laugh. Helpful humor is our way of infusing laughter into your work-week

“Car Problems”

Following a night out with the girls, a woman returns home and informs her waiting husband, “there is something terribly wrong with the car, Dear.” “I'm afraid there is water in the carburetor.”

Her husband replies, confidently, “That's not possible.”

The wife insists, “Well, it has water in the carburetor.”

“And I am telling you,” the husband insists, emphatically, “it is not possible.

“Well,” says the wife, “my car has it.”

Noticeably flustered, the husband rises from his easy chair, sighing, and asks, “Okay.” “Where is the car?” Glancing downward in embarrassment, his wife raises her hand, motioning to the back yard. “It's in the swimming pool.”