They don’t have the means to carry these subdivisions long enough to ride out this downturn. They seem to think this is going to blow over in the next 12 months. Amazingly, they seem to have talked their bank into this fantasy as well. I think their construction lender is even dumber than they are. Or in denial.
Sooner or later their holding costs are going to bury them. When that happens they will be forced to sell the prevailing price structure anyway, which in 2009 will be even lower than it is now. They’re throwing good money after bad. Suckas.
