Posted on 05/07/2009 9:48:21 AM PDT by StopBigGovt
Another shoe is about to drop with a thud on banks...from the condo market. In addition, commercial real estate problems are building. This is not surprising, but begs the question how the Federal Reserve threaded this variable into the highly publicized bank stress test, due out at 5pm today. ... Defaults in nonresidential construction loans went from 6.6% in the 4th quarter of 2008 to 8.9% in the 1st Quarter of this year.
The results of the Stress Test were determined before it was ordered by the Obama Admin. Anyone putting any faith in it should have their head examined.
Beat me to it. Yup, the SW and FLA (CA, AZ, NV, FL) have a long way to go. Prices are going to continue to drop and the banks are in serious trouble. In fact, any bank lending in these states is a Zombie Bank and will be taken over by the Federal Government.
We should get rid of CA, AZ and NV (except Vegas, of course).
Until recently ( on a grander scale) people enjoyed their home as a "home" rather than a paltry ever changing "investment", and were proud as punch to pass it down/on to the continuing family.
"Ooooh , what he said!"
[We should get rid of CA, AZ and NV (except Vegas, of course).]
Hey! I’m in Vegas!
My real estate business is actually rebounding right now - because of foreclosures. Inventories are shrinking. But commercial is screwed and we have a long way to go. I expect another foreclosure wave, trying to build cash reserves before that happens.
norraad — That is so true....too many people used their homes as ATM’s.
Scary graphic on monthly mortgage rate resets...
You know, banks are always undergoing stress tests but yesterday was the first ‘publicized’ stress test. Makes one wonder if the highly publicized bank stress test was in fact a PR stunt.
As a minimum it was a PR stunt. Personally, I think it was fraudulent. We should start seeing cracks in their story in the latter half of 2009, but that will be too late for those that reinvested in the stock market based on the Obama regime’s happy talk.
I too think there’s fraud going on-—which makes one think there’s more fraud that hasn’t yet surfaced.
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