Bad signs for the commercial markets.Submitted by cthomas on Wed, 05/05/2010 - 10:52
I'm not a banker, but I'm guessing that this is a bad, bad sign for the already-hurting commercial building market:
...commercial real estate exposure has become a frighteningly accurate predictor of bank health. Of the 100 banks that had the highest ratio of commercial real estate loans to total capital on January 1, 42 have already failed.
When the finance of a major piece of the construction market is being used as an indicator of bank failures, what does that say about the likelihood of banks continuing to finance that sector of the construction market?