Greenlight's housing fixation needs renovation


One of American's biggest postwar homebuilding booms is, by all measures, running out of steam. Now if someone would only send a memo explaining this to Greenlight Capital's David Einhorn.

Mind you, Einhorn successfully rode the coattails of a decade-long boom that brought triple-digit hikes to home values in many regions and hefty profits to investors in mortgage companies. But the tide has turned. Mortgage companies these days are getting slammed, and Greenlight appears to be holding fast to them. Regulatory filings with the Securities and Exchange Commission show that the Greenlight portfolio, heading into the fourth quarter, was