Almost every major bank had, or will have, massive lossesresulting in write-downs of historic proportions. By the end of2007, the credit markets all but shut down for new real estateprojects and investments.

This national problem has been exacerbated in states such asFlorida due to massive overbuilding in the residential housingmarket. Add to that the ripple effects from the halt on newconstruction that has forced some industry-related businesses tolay off workers, or shut down completely in some cases.Furthermore, rising gas prices and the devaluation of the dollarare resulting in one of the tightest credit markets we have seen ina long time.

Many are now asking whether the situation will drag out, getworse or improve—and if it will improve, when? But speculating whenthe markets will turn around is foolish. A better approach is tofind out what financing vehicles are available in the market now,rather than waiting in paralysis for a rebound.