Toll Brothers Sounds Off on 'Ceaseless' Recession Talk

CEO says gloom has sidelined demand.


Endless recession talk is apparently cramping Toll Brothers' profits. According to CEO Robert Toll in the company's first-quarter earnings release: "Ceaseless talk of a recession continues to dampen the mood of consumers, in general, whether or not a recession actually occurs." He added, "For home buyers, we believe this drumbeat, coupled with concerns over mortgages, the direction of home prices, and foreclosures, has kept pent-up demand on the sidelines." Toll Brothers, the country's largest luxury home builder, posted a loss of $96 million, or 61 cents a share, in its fiscal first quarter.

Are we too gloomy on the economy? Money manager and Forbes columnist Ken Fisher might agree with Toll.