Wednesday, November 11, 2009

Washington Leads The Nation...In Troubled Banks!

Good golly, I'll have to say I was surprised that WA state is #1 when it comes to troubled banks. According to Calculated Risk's Unofficial Troubled Bank List, 26.3% of WA states banking industry is either under formal enforcement action or just flat out failed. Not good.

Seattle leads the nation in delinquent construction loans as well, with a whopping 30% default rate. See the graph in this NYT article here.

During the early days of the housing bubble bust you couldn't swing a dead cat without hitting a real estate agent or local economist telling anyone that would listen that 'Washington is different' and would not feel the downturn. Well, WA state certainly is different in that it is leading the way.

I'm not sure how all of this is going to shake out, but it is not going to be good.


  1. If it means that I'll be able to buy a house or condo because prices come down to a partially over inflated level instead of way way over inflated, then it might be a good thing after all.

  2. (for the record yes that was a joke) Bring on the doom.