Banks in Florida are mostly Weak

Many local Banks in Florida have questionable capital ratios.  This is product of outrageous housing loans and practices.

When it comes to strength and solvency, Florida is among the worst states for banking, according to a new report released by Weiss Ratings.

Nearly 80 percent of the 532 banks and thrifts in Florida are considered weak and have received a D-plus or lower Weiss Financial Strength rating.

via Weiss: Florida among worst for banking | South Florida Business Journal.

Great Analysis of Florida Development Culture–What Went Wrong and Who Pays The Price

…the land use policies and politics of the late, great boom originated in South Florida, where an earlier generation of entrepreneurs had figured out the components of scalable housing developments that characterize the built landscape: condominiums on the ocean front and platted subdivisions in the ring suburbs. Although the conclusions of the Financial Crisis Inquiry Commission, issued last week, are unsurprising– namely that the crisis was avoidable– the mainstream media continues to avoid the closer analysis of what I describe as the Growth Machine: the network of local real estate speculators, lobbyists, mortgage and title companies, engineers, and politicians who facilitated first the massive overdevelopment of South Florida and then its inevitable collapse.

via EYE ON MIAMI.

Florida: Housing Will Recover Later

Nothing to add.  Don’t believe the politicians and real estate agents.

…here are the five states where the housing recovery will be a lot longer in the making:

1. Nevada

The poster child for the housing boom was Las Vegas but now it’s lights out on Glitter Gulch. The state has the highest mortgage delinquency rate in the country at 8.3%, the highest unemployment rate at 14.4% and has suffered the biggest peak-trough home-price declines of any area, a 56.4% tumble.

2. Michigan

Not a state that enjoyed the boom, but one really feeling the bust. It has the second-highest unemployment rate in the nation at 13.1% and mortgage delinquencies hit 5.1% of outstanding loans. Home prices have also fallen hard, 31.7% from the peak.

3. California

The second-highest mortgage delinquency rate in the country at 6.0%, the third-worst unemployment rate at 12.4% and home-price declines of 40.8% put the Golden State on a long path to health.

4. Florida

Tying California with a 6.0% mortgage delinquency rate but beating its cross-coast rival with a home-price decline of 46.9%, Florida also won’t be doing well anytime soon. An unemployment rate of 11.7% doesn’t help.

5. Rhode Island

Unemployment trips up Rhode Island, which ties for the fourth highest rate in the country at 11.7%. Home-prices declines were 25.6% and 4.9% of mortgages are delinquent.

via The 5 states where housing will recover first – MarketWatch.

People Still Believe in “Old” Florida and Coral Gables Growth

This proves that the old development coalition of developers and unions still think that Florida will return to its old growth of unfettered real estate and commercial development.  The mere thought of Amendment 4 sent land owners in Coral Gables running to the city commission for building zoning exceptions for downtown Coral Gables, and the commission jumped right into the game.

What is almost certain is that it will be a decade before any recognizable real estate investment returns, and it will have to take an entirely different form; so with or without Amendment 4, Florida will never return to the old model of population growth and real estate leading the state’s growth.  George Merrick is certainly turning over in his grave.

Our leaders will have to find a new growth model based on educating people–it is people who count, not land.

Amendment 4 would have required voter approval to change city, town and county comprehensive land-use plans.

Opponents included business groups, developers and some labor unions and they spent more than $12 million. They said Amendment 4 would seriously damage the economy, cost jobs and make it more difficult to lure companies to the state. They also said it will also cost municipalities tens of thousands of dollars or more to run the required elections.

via Florida voters reject land-use amendment – Politics AP – MiamiHerald.com.