The Music is Getting Softer 11.10.9......
The Honolulu Symphony may file for bankruptcy protection as early as tomorrow, according to people familiar with the situation.
The symphony, the oldest American orchestra west of the Rocky Mountains, has struggled in recent years to pay its musicians. Two months ago it received a $1.8 million cash infusion to cover operating expenses for the upcoming season.
It is amazing how much financial distress there is out there....families, businesses, and organizations. Many are Feeling the Zombulator as we approach 11.10.9.
A number of businesses have liquidated inventory and have little in the way of collateral to reinvest or obtain a line of credit for new inventory. CIT's bankruptcy will not help matters.
Many homebuilders have sold off the "good" fininshed lots at firesale prices and now have to spend what little precious cash remains to build out new lots and/or communities. This is where the rubber hits the road in the homebuilding business because the cost basis of the new lots will be relatively very high compared to ridiculously low impaired finished lot basis.
This is the kind of stuff the mainstream housing analysts don't tell you about...but bloggers like FB2 does an EXCELLENT jobs laying out the realities....even if he is a bit bananas.
It will be interesting to see how our nation confronts an unprecedented deficit, unprecedented debt, unprecedented economic distress, and a potentially difficult lending environment as revenues and tax receipts evaporate.
11.10.9....Where we Feel the effects of Zombulation.....even if you can't hear it as loud anymore.