December 1, 2007 (LPAC)--In a November 27th article, thestreet.com identified seven banks in Florida, which are on the verge of bankruptcy (View the list, here).  The author of the article makes a sharp observation, that, while most of these bank's troubled loans are composed of, primarily, sub-primes, another large chunk of the worthless debt was actually generated from construction loans, as developers pull out of their construction projects.

To give another dimension of severity, and the absolute un-reality of the current collapse, take the example of Coast Bank of Florida, ranked as #1 in the list cited above.  As reported by Herald Tribune, Coast bank was purchased for a cool $12.1 million, $1.86 a share. First Banks Inc., the purchaser, did not pay the asking price, which was $10 million more than what the bank was finally purchased for.

Reminder:  If the banks fail, the homeowners, and, in fact, the entire world will go down with them.