New Century Bankruptcy

It comes as no surprise that New Century has filed for Chapter 11 protection. The bad news is that the company says it will fire 3,200 workers (54 percent of its workforce, according to the article below).

So the question of the day is this: What will happen to New Century in the long run? While you're formulating a response to that question, consider what the MBA said last week about housing activity: "It is unlikely that housing activity has bottomed... Leading indicators ...suggest that starts should continue to trend down in the coming months."

Here's the article regarding New Century: http://www.businessweek.com/ap/financialnews/D8O8IDSG0.htm