I was having dinner the on Saturday night with a well respected commercial banker with JP Morgan Chase. We started discussing his portfolio and how it has completely blown up. He said big private billboard developers were being forceclosed on and going into bankruptcy in Arizona. His California projects were completely in the tank and that he was literally taking back thousands of residential lots with infrastructure already in place. He had condo in Portland (he thought he’d get his money back on those) and that the market won’t level out until 2010. He stated to me that we are not near the bottom because when he starts selling his land at rock bottom prices then we will be at the bottom.

This really blew me away as I thought we were at or close to the bottom. I think the next 3-6 months are going to be ugly.