Bigger Losses in Luxury Housing

Hovnanian Enterprises, a luxury home builder, reported that its losses are "bigger than it had previously expected"...and guess why? "The subprime mortgage crises."

http://www.reuters.com/article/gc06/idUSN0426931520070504?src=050407_1317_FEATURES_subprime_mortgage_trouble

The losses it's suffering are significant. "The company expects a loss of 45 cents to 50 cents per share for the quarter, ended April 30"

Looks like the subprime market is still impacting other areas of our economy, including luxury homes. All that talk of "containment" seems a bit off the mark with the benefit of 20/20 hindsight.