Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (7364)	6/1/2004 3:21:30 PM
From: yard_man	Read Replies (1) \| Respond to of 116555

relative of someone we know and love?? <g> biz.yahoo.com Roy Lewis lives in a trailer down by the river and is a motivational speaker when not dealing with tax issues. He understands that The Motley Fool is all about investors writing for investors. You can take a look at the stocks he owns as long as you promise not to ask him which stock to buy. However, he'll be glad to help you compute your gain or loss when you finally sell a stock

To: mishedlo who wrote (7364)	6/1/2004 10:24:02 PM
From: Elroy Jetson	Read Replies (2) \| Respond to of 116555

I think you're smoking crack when you imagine that home builders don't go bankrupt and completely out of business. Most of the best known names in the home building business went bankrupt around 1991. NYSE traded Kaufman & Broad went bankrupt, I think in 1993. The current slimey management bought the name from the bankruptcy estate. All home owners lost their warranty coverage and any right to further repairs. Some homes were a total loss. NYSE traded William Lyon Homes, the largest home builder in California, went completely out of business. General Lyon and his son opened a new two man and one secretary company with the same name. Five years later he was offered the position of CEO of Presley Development. They were gracious enough to "merge" Presley with the tiny William Lyon Company and change the name of the resulting company to William Lyon Homes. NYSE traded Centex Homes went bankrupt in 1991 or 1992. NYSE traded Ryland Homes went through bankruptcy around the same time though with some assistance from a private investor group. If I get some time I'll give you the complete roster of major home builders that failed around that time. The list probably includes the complete list of home builders you imagine never go bankrupt. Don't start smoking the same drugs Splotto is using, it can be dangerous to your financial health. Pardee Homes never suffered, but only because as a wholly owned subsidiary of Weyerhaeuser Corp they had no outstanding debt.

To: mishedlo who wrote (7364)	6/2/2004 12:41:11 AM
From: Elroy Jetson	Read Replies (2) \| Respond to of 116555

I got the date wrong for the bankruptcy of Kaufman & Broad Homes. They filed for bankruptcy in 1987, not 1992. They beat the pack to insolvency by building homes on filled ravines which were deeper than 38 feet. Once the homes were built the ground settled and destroyed the homes by collapsing their foundations. Bruce Karatz and his band of unethical pirates bought the name from the bankruptcy trustee and incorporated KB Home in 1988. Lucky for them they didn't get a chance to buy much land before the bottom fell out of the housing market in 1990. Each of these bankrupt builders left shareholders without a penny, while lenders traded their debt for raw land and used furniture which they typically sold for $0.07 on each dollar of debt outstanding. Home owners were left without warranties or promised repair work. The lenders on Kaufman and Broad homes were given preference and received roughly 35% of their mortgage debt from lenders and the bankrupt estate. The homeowners were completely wiped out. This bubble is far larger than 1989 and, as a cursory read of any home builder's Balance Sheet will tell you, the decimation of the home building companies will be far more complete this time around.