Trumpo is shocked to read about a 4.1 percent drop in commercial property values in November.

I’m on the train to the city to meet with some fund managers wishing 2007 would just come and go. The worst drop in commercial property for more than twenty years has followed on the back of the horrific consumer credit crunch, and as the banks used the same methods and the same banks to package up commercial mortgages as they did residential I suppose it’s only to be expected.

Trumpo believes the reason the commecial property drop has been so big is largely due to the massive call to cash-in holdings in property funds throughout the city. Property funded via the money markets is probably now deemed high risk and fund managers are cashing-in historical profits and running for the hills - they are quite happy to sell the underlying assets cheap just to get out.

So I suppose you could say we have a run on the commercial bankers.

The numbers are tiny compared to the domestic market with the “small” amount of $212 billion being at risk.

State owned commercial property anybody?

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