The US credit market, as it relates to real estate, started to erode last summer with the blowup of the subprime lending market. This resulted in an avalanche of losses created among most of the nation’s major banks and lending institutions that continues to this date.

Almost every major bank had, or will have, massive losses resulting in write-downs of historic proportions. By the end of 2007, the credit markets all but shut down for new real estate projects and investments.

This national problem has been exacerbated in states such as Florida due to massive overbuilding in the residential housing market. Add to that the ripple effects from the halt on new construction that has forced some industry-related businesses to lay off workers, or shut down completely in some cases. Furthermore, rising gas prices and the devaluation of the dollar are resulting in one of the tightest credit markets we have seen in a long time.

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