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

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To: orkrious who wrote (51226)1/25/2006 12:03:14 AM
From: John Vosilla  Read Replies (4) of 110194
 
Cash flow stays negative and debt keeps growing even in the best of times. Imagine when the real slowdown occurs, margins collapse, prices drop, credit tightens and costs of construction keep moving up. Then add in all those unfinished subdivisions and vacant land sitting on the books not producing any income while the debt is still out there and a ton of operating and administrative expenses as a big national diversified builder are FIXED. The perfect storm in reverse perhaps?
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