Star News

Economists who determine the life cycles of recessions are divided over the odds of a renewed downturn, underscoring the challenge faced by Federal Reserve Chairman Ben Bernanke as he vows the Fed will “do all it can” to sustain growth. Many experts believe that Bernanke is running out of bullets at which to use against a fragile and slowing economy. With interest rates near zero, a general consensus is that Bernanke may have little to work with. Bernanke has disputed the notion that the Fed is out of ammunition, stating that “should further action prove necessary, policy options are available to provide additional stimulus.”

Bernanke also provided his most detailed analysis yet of 3 options open to the Fed: further purchases of securities; a change in its policy statement; and, a reduction of the interest rate the Fed currently pays on banks' excess reserves.

This month, the Fed decided to keep its holdings at $2.05 trillion by reinvesting proceeds from maturing agency and mortgage-backed securities currently in Treasuries, to support a slowing economic recovery. The Federal Open Market Committee, next scheduled to convene on September 21st, will hold the main interest rate unchanged at 0.25%, where it has remained since December, 2008. We will keep you posted…

Nationwide Lender Seeking to Place Long Term Loans From $1 Million - $50 Million

Penstar is currently working with a capital provider funding debt transactions secured by stabilized commercial properties for borrowers requiring longer loan maturities. The lender will advance on the purchase or refinance of single and multi-tenant industrial, office, and retail properties for loan terms of 10, 15, 20, and 25 years. Loans will be a maximum of 65% of today's value and carry a 25-year amortization. Interest rates range from 5.0% to 6.25% based on the size of the transaction, leverage, and quality of both the real estate and respective income stream. To learn more, please contact Steven Hamermesh at (818) 883-9609 or hamer@penstaradvisors.com.

Helpful Humor
“The Photographer”

A photographer for a renowned national magazine was assigned to shoot photos of a devastating forest fire. Smoke at the scene was too thick to get any good shots, so he frantically called his home office to hire a plane. “It will be waiting for you at the airport!” assured his editor.

Upon his arrival at the airport, a small facility in a rural location, he observed a plane warming up near the runway. He jumped in with his equipment and yelled, “Let's go! Let's go!” The pilot swung the plane into the wind and soon they were in the air.

“Fly over the north side of the fire,” said the photographer, “and make three or four low-level passes.”

“Why?” asked the pilot.

“Because I have to shoot pictures!” exclaimed the photographer. “I'm a photographer, and photographers take pictures!” he said, exasperated and noticeably annoyed.

After a long pause the pilot said, “You mean you're not the instructor?”