The Epic American Credit and Bond Bubble Laboratory Message Board

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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: russwinter who wrote (50216)	1/19/2006 12:27:54 PM
From: kris b	Read Replies (4) of 110194

Are they slowing starts? Starts are not as much important as cancellations. With financing in place they have to build no matter what. In house building all your profits are an illusion. They are all rolled over back into land inventory. They have to start new projects as new money pays for the previous structures. Robb Peter to pay Paul. As soon as sales fall of the cliff, the bills come in and the get killed. Just look at CTX acid test. I have seen this vicious cycle over and over again. Another item to look for is the LAND INVENTORY AND HOW IT IS FINANCED. This will really hurt them when prices collapse and they have to write off the value, while debt stays constant. Trust me. I have been there in my construction career. I have seen it all. I played that game myself.

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