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Volume 11: Issue 2 | Date: February 16, 2021

COMMERCIAL LENDING NEWSLETTER

You are receiving this letter because you are one of my Spartans - my top-producing brokers and investor clients - of whom I am allowed to have 300. Removal instructions are below. Today we’ll briefly discuss President Biden's $1.9 trillion stimulus plan.  As always, we have lots of cute, clean jokes, funny pictures, and a funny video of winter fails that should put a smile on your face.

Joke Du Jour

What did our parents do to kill boredom before the internet?

I asked my 10 brothers and sisters and they didn't know either.

Here is What Blackburne & Sons Can Do

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Stain Joke

"The Dallas Public Library displays one of the original copies of the Declaration of Independence - also the only copy stained with barbecue sauce." -- Conan O'Brien 

- Today's Observation -

Getting Away With Printing $1.9 Trillion

We are certainly living in interesting times. As the future  Dictator of the World, Xi Jinping, continues to mobilize his 1.4 billion citizens for world conquest [just joking?], the Biden Administration continues its quest to print up $1.9 trillion in new money to rescue the U.S. economy.

It's ironic. I am a Republican and a fiscal conservative, but right now, I generally agree with Biden's plan. We have to do something; otherwise, the U.S. money supply will contract like an imploding black star. Let me explain.

Loans have payments, and America sure has a lot of loans outstanding. As Carl Sagan, the famous astronomer, might have said, "Trillions and trillions of them."

Congress, the U.S. Treasury, and the Federal Reserve can create all kinds of new money, but much of this new money just gets used to make all of the monthly interest payments on our existing debt.

Here's a metaphor that might explain this concept. Picture the breakfast table in your kitchen. Now cover it with 36 sponges.  Next, take your tea kettle, fill it with water, and then slowly pour the contents over the various sponges.

This is what is happening to the U.S. money supply. Each time the Federal government prints up new debt and then has the Fed buy it - thereby monetizing the debt - its like refilling that tea kettle with more water. 

Yes, if we keep refilling that tea kettle, those sponges will eventually become over-saturated.  They will no longer hold any more water. Water will then spill all over the table, down the sides, and onto the floor. We will have horrible hyper-inflation.

But right now, those sponges are still holding water. In fact, those sponges are hungry for more water. The banks want their loan payments, so we have to keep creating new money. 

For the next few years, Congress should be able to keep deficit spending and the Fed should be able to continue its campaign of quantitative easing, without having the dollar completely collapse.

Yes, the dollar fell 6.7% last year. A free-falling dollar would be the sign that the game was finally over. At that point in time, Congress would have to stop deficit-spending and the Fed would have to greatly reduce quantitative easing. That would send interest rates higher, which should greatly curtail inflation.

But for right now, we are in an unusual economic zone, when we can apparently create massive amounts of new money, at little immediate cost. 

Video Training Courses For The Newbie Commercial Mortgage Broker

Manslaughter Joke

A prospective juror in a Dallas District Court was surprised by the definition of voluntary manslaughter given the panel: "An intentional killing that occurs while the defendant is under the immediate influence of sudden passion arising from an adequate cause, such as when a spouse's mate is found in a 'compromising position.'" 

"See, I have a problem with that passion business," responded the jury candidate. "During my first marriage, I came in and found my husband in bed with my neighbor. All I did was divorce him. I had no idea that I could have shot him."

She wasn't selected for the jury.

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Wallpaper Joke

A young woman decided to redecorate her bedroom. She wasn't sure how many rolls of wallpaper she would need, but she knew that her friend next door had recently done the same job and the two rooms were identical in size.

"Buffy," she said, "how many rolls of wallpaper did you buy for your bedroom?" "Ten," said Buffy. Based on Buffy's input, the girl bought the ten rolls of paper and did the job - but she had 2 rolls leftover.

"Buffy," she said. "I bought ten rolls of wallpaper for the bedroom, but I've got 2 left over!" "Yeah!" said Buffy. "So did I."

On a Personal Note

We have lived in Orangevale, California in the same house for the past 21 years. When we moved in, everything was brand new. Obviously over the years things get old and worn out. Over the past few years we have replaced all of the siding, got all new windows, painted the exterior of the house, installed a sliding glass door in the master bedroom, put a huge awning covering the whole outside porch and this past weekend we replaced all of the carpet with brand new laminate flooring as well as new baseboards. Wow, what a difference new flooring makes. It is like a brand new house. We love it and are so happy with the results!

Alicia Gandy

Loan Representative

(916) 338-3232 Ext. 310

gandy@blackburne.com

NMLS #389678

CA DRE #01430908

Video - Winter Fails. Try Not to Laugh!

Final Funny - Ordering a Pizza in 2022

CALLER: Is this Pizza Hut?

GOOGLE: No sir, it's Google Pizza.

CALLER: I must have dialled a wrong number, sorry.

GOOGLE: No, sir, Google bought Pizza Hut last month.

CALLER: Okay, I would like to order a pizza.

GOOGLE: Do you want your usual, sir?

CALLER: My usual? You know me?

GOOGLE: According to our caller ID data sheet, the last 12 times you called you ordered an extra-large pizza with three cheeses, sausage, pepperoni, mushrooms and meatballs on a thick crust.

CALLER: Super! That’s what I’ll have.

GOOGLE: May I suggest that this time you order a pizza with ricotta, arugula, sun-dried tomatoes and olives on a whole wheat gluten-free thin crust?

CALLER: What? I don’t want a vegetarian pizza!

GOOGLE: Your cholesterol is not good, sir.

CALLER: How the hell do you know that?

GOOGLE: Well, we cross-referenced your home phone number with your medical records. We have the result of your blood tests for the last 7 years.

CALLER: Okay, but I do not want your rotten vegetarian pizza! I already take medication for my cholesterol.

GOOGLE: Excuse me sir, but you have not taken your medication regularly. According to our database, you purchased only a box of 30 cholesterol tablets once at Lloyds Pharmacy, 4 months ago.

CALLER: I bought more from another Pharmacy.

GOOGLE: That doesn’t show on your credit card statement.

CALLER: I paid in cash.

GOOGLE: But you did not withdraw enough cash according to your bank statement.

CALLER: I have other sources of cash.

GOOGLE: That doesn’t show on your latest tax returns, unless you bought them using an undeclared income source, which is against the law!

CALLER: WHAT THE HECK!

GOOGLE: I'm sorry sir, we use such information only with the sole intention of helping you.

CALLER: Enough already! I'm sick to death of Google, Facebook, Twitter, WhatsApp and all the others. I'm going to an island without the internet, TV, where there is no phone service and no one to watch me or spy on me.

GOOGLE: I understand sir, but you need to renew your passport first. It expired 6 weeks ago...

Members of the Blackburne Family of Companies

555 University Ave, Suite 150

Sacramento, CA 95825

P: (916) 338-3232

F: (916) 338-2328

CA DRE #00829677 // NMLS #103430