Death Spiral Financing
http://globaleconomicanalysis.blogspot.com/2007/09/death-spiral-financing.html
Homebuilder SPF canceled its small dividend and announced a convertible debt offering that encouraged shorting. This is an act of pure desperation. Lennar reported a disastrous quarter with sales down 44%, more job cuts, and a loss per share of $3.25. Based on Credit Default Swaps the three builders most likely to go bankrupt are BZH, HOV, and SPF.
MishMike Shedlock / Mish
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