Two articles in NYT on side effects of housing bust:
Even Nonhousing Markets Feel Mortgage Fallout:
The day-to-day financial dealings of Oneida Limited, the dinnerware and flatware maker, are typically about as far removed from the mortgage loan business as they can be.
Yet, like the proverbial flapping of a butterfly’s wings that sets off a storm thousands of miles away, the turmoil in the home mortgage market this summer directly affected the fortunes of the company, based in upstate New York, when it was forced to withdraw a planned offering of $120 million in high-yield bonds to investors as the credit markets froze up seemingly overnight.
If the deal had been offered just a month earlier, said Andrew G. Church, Oneida’s chief financial officer, the company would have had no trouble raising the money. “But it happened so quickly,” he said. “We’ve never seen anything as quick as this.” …..
Drywall Maker in Pain as Housing Suffers
Plenty of companies — the mortgage lender Countrywide Financial, the hardware giant Home Depot and the insulation maker Owens Corning among them — are absorbing the ill effects of the yearlong slump in housing construction and sales. But few have felt it as forcefully or as suddenly as the USG Corporation, the nation’s largest maker of drywall, the paper-wrapped plaster boards used to build walls in homes and offices….