Toll Brothers Sounds Off on 'Ceaseless' Recession Talk

CEO says gloom has sidelined demand.

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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.