That’s deflation at work. I think people forget after a big boom like we’ve recently had here in CA, that the market determines the price, not costs. Once a product is on the market, cost is not really that relevant. I’ve bought many things in my life below production costs. Of course, what this does is highly disuade the producers from making any new product when they see that current market prices are below their ability to produce at cost. And I think this is why we will see a lot of home builders going bye-bye in the next two years. Again, count how many were around in 1988 and then again in 1996. And that down cycle was a joke to what we’re seeing now.
