Just a reminder that I said this in August 2008 Construction Loans Default and September 2008 Construction Loans Overwhelm Banks:
Reports filed by banks with the Federal Deposit Insurance Corporation indicate that at the end of June about one-sixth of all construction loans were in trouble. With more than half a trillion dollars in such loans outstanding, that represents a source of major losses for banks.”
Deutsche Bank predicts that “construction loans will be the epicenter of bank loan problems”
Deutsche Bank: Construction Loan Defaults Coming – Barry Ritholtz – The Big Picture – 5 August 09
NY Times: One-sixth of Construction Loans in Trouble
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