The worst bet in real estate today: Construction loans

[mEDITate-OR:

bet on the wrong things, in all the wrong places, to go bad...

Commercial defaults - both construction and take out lending - are destroying [y]our small, local, community banks. We did bail out the Big Bad Banks, and we did bail out General Motors, Chrysler, and AIG. But, we are not doing anything for small banks and/or small business.

And, if you think it is bad where you are, you should be in one of the sand states.
Really ugly.

But, this article is very good.
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Even so, the numbers are already grim:

LOANS TURNING SOUR More construction loans are going bad than any other kind. percentage of loans by category that were 90 days or more past due among FDIC-insured lenders on March 31: All real estate loans 7.6% Construction/development 16.8% Non-farm non-residential 4.2% Multifamily residential real estate 4.6% Home equity loans 1.7% Other 1- to 4-family residential 10.2% Commercial/industrial loans 3.1% Loans to individuals 2.3% Credit card loans 3.1% Other loans to individuals 1.4% All other loans/leases* 1.7% Total loans/leases 5.5% * = includes farms Source: FDIC

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The worst bet in real estate today: Construction loans
http://www.usatoday.com/money/industries/banking/2010-08-17-banks17_CV_N.htm
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