Posted on 06/06/2008 4:48:00 PM PDT by shrinkermd
The housing downturn continues to crush Florida bankers: Overdue loans, mostly real estate related, have nearly quadrupled the past year in the Sunshine State.
If that were not enough, the state's lenders have unusually low cash reserves to protect against mortgage defaults. And 41 percent of Florida-chartered banks were unprofitable the first three months of this year. That's twice the number of banks that bled red ink last year.
These not-so-encouraging trends emerged from reports released the past week by the Federal Deposit Insurance Corp. Experts blame a chain reaction ignited by a two-year plunge in real estate values. It's not just problem home mortgages, but also developers defaulting on loans used to buy land and finance condominium towers.
"We're still on the downside of the curve. We've not reached a bottom," Miami banking expert Ken Thomas said.
The FDIC reported that "past due and non-accrual loans" — loans people aren't paying back on time — swelled 276 percent the past year in Florida. Bad loans rose from 0.7 percent of all loans in the first quarter of 2007 to 2.63 percent of all loans in the first quarter of 2008.
(Excerpt) Read more at tampabay.com ...
However, it would be nice to get some more solid numbers for the country as a whole, particularly numbers giving more concrete NPL numbers as a dollar figure.
I myself like both of the metrics of (1) comparing the dollar value of all NPLs against all outstanding loans, and (2) all NPLs against GDP (GDP just to get a scale on how big the problem is relative to annual economic activity, not because of any inherent relationship between NPLs and GDP.)
They clearly do not want to be in power when we all start paying for the mismanagement of the country over the last 20 years.
We are in very, very serious trouble. I thought Glenn Beck was going overboard with his predictions for the economy, now I'm honestly starting to believe he may be right.
I want the US to embark on a Roosevelt-style public works bonanza building nuclear plants. That would be the catalyst for a huge economic boom. We could be free from oil dependency within 30 years.
Complete BS!
The "mortgage crisis" was caused by a bunch of stupid, greedy people who built a house of cards and are now whining big time 'cause it all came crumbling down. Go cry on someone else's shoulder.
If only it were as simple as that.
Mike Morgan’s (Florida real estate broker) comments are quite revealing
http://www.morgan-florida.org/quick-notes
If you lived in Florida would you pull money out of your local Florida bank and move it up north? That %100,000 promise isn’t worth the paper it’s written on if 20% of the banks go under.
bump to find on other pc ... ;-)
Very interesting link. Thank you.
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