Economic Rebalancing

The global economy is horribly out of balance, with the United States going deeper into debt each year as a result of a huge trade gap. This blog describes the process of global economic rebalancing. If you have any comments or questions about the posts here, please don't hesitate to use the comments section.

Tuesday, November 07, 2006

Burning Through the Backlog

Toll Brothers gave the first indication about how the housing market fared in October (horribly). Net orders for their quarter ending 10/31/06 were down 57.56% nationally year over year. The order decline was worst in the previously hot Southeastern region, -77.8%.

Toll traditionally kept about 1 year's worth of orders in backlog, so it has taken a long time for closings to decline substantially. Profits remain strong for now, but they'll fall going forward as closings follow orders and backlog down:

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