No Good Reason to Own Homebuilders By Jim Cramer About this article: Extra, extra! Citigroup downgrades Lennar , Pulte , Toll and Ryland from buy to hold! To which I say, are you kidding me? Was anyone in his or her right mind still recommending these stocks? On what grounds? Short squeeze? Land shortage? Return of demand despite higher interest rates? So much is made of the subprime problems and their impact on the now-incredibly-heavy Merrill , Lehman , Bear Stearns and Goldman Sachs that I have to point out that the real losers are not those firms, which can adjust to other businesses, but the homebuilders, which keep building homes and need low, cheap credit to get them off the books. One look at the excellent interactive table that The Wall Street Journal has put together to show the debacle of the collapse and closings of the mortgage brokers (what a marginal industry that was,... Or, call us at 1-866-321-TSCM (8726) Monday-Friday, 8 a.m.-6 p.m. ET. Outside the U.S. and in Canada, call 1-212-321-5200.

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