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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ChanceIs who wrote (51553)	4/6/2006 3:44:20 PM
From: GraceZ	Respond to of 306849

Toxic converts are how operating bankruptcies get capital to keep their doors open long enough to liquidate some assets before they get to the official bankruptcy reorganization.

To: ChanceIs who wrote (51553)	4/6/2006 11:33:20 PM
From: John Vosilla	Read Replies (1) \| Respond to of 306849

"It took Calpine 4.5 years to die. It peaked in the summer of '01, and filed BK last December. The HBs peaked only nine months ago on average" I can see four years from now being some sort of bottom just like the last bust. One thing about the builders. There is no recurring revenue from services that generates a steady income stream. If the numbers don't pan out and margins are nonexistent what do you do with all the overhead, employees, vacant land and huge upfront costs of infrastructure in abandoned developments while all the debt keeps accruing interest day after day? I saw many an abandoned project or half finished house during the RTC days. So many lots just went up for back RE taxes while mortgages sold for pennies on the dollar.. it was just incredible the losses sustained by the industry back then..