Housing Giants - August 11, 2008 - (Page 11) way — involved with government is, I think, naïve.” Green points out that Fannie was, in fact, a government agency for 30 years, backed by the full faith and credit of the U.S. government until it was privatized in 1968 by the Johnson Administration. “We’ve gone through periods like this before,” Green says. “In the early 1980s recession, credit losses were even higher, so I think both Fannie and Freddie will survive. Raising their capital limits makes sense. We now know they need more capital to withstand stress.” — Bill Lurz “It’s like a craps table. You got all these winnings and profits out there, but you just keep gambling it. You never pull any money off the table. And then all it takes is to roll that seven one time and all the money is gone.” Industry veteran Bill Kimberley, owner of Kimberley Development Corp., on the demise of Iowa’s largest home builder, Regency Homes (Des Moines Register, May 4th) Toll BroThers’ sTaTus falls To junk Toll Brothers, the Horsham, Pa. home builder, had the misfortune of having its credit rating drop to junk status by Moody’s Investor Service. As reported in a Bloomberg report, Moody’s representatives said, “While the company is one of the only remaining home builders that is currently generating earnings before impairment charges, Moody’s does not expect this to continue, as falling prices and lower absorption rates continue to impact margins.” www.Housinggiants.com 8.11.08.Housing giants 11 http://www.kimdev.com/ http://www.regencyhomes.com/ http://www.regencyhomes.com/ http://www.desmoinesregister.com/apps/pbcs.dll/frontpage http://www.tollbrothers.com/ http://www.moodys.com/cust/default.asp http://www.housinggiants.com
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