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


To: valueminded who wrote (71199)11/14/2007 11:35:02 AM
From: mishedlo  Read Replies (2) | Respond to of 116555
 
Mothball Housing Strategy Doomed To Fail
globaleconomicanalysis.blogspot.com
Lennar has decided to keep building houses and mothball them until swollen housing inventory improves. This is a very dangerous practice as carrying costs will skyrocket. The CEO said "It doesn't make sense for us to sell it in an environment that as strained as it is right now." But it makes even less sense to keep building in such an environment.
Mish