Here comes the commercial real estate shoe

After Mortgages, Construction Crisis May Be Building

Always a lagging market behind residential, commerical real estate and residential construction is lining up to be a serious problem for banks on top of their already mounting problems. This will affect the national banks, but local banks will really be pounded by this. Look for the FDIC to be a busy beaver in 2008 and against the ropes in 2009. Their reserves are paltry when you look at the potential losses mounting at banks tied to the real estate markets.