Rippling Outward

The real estate bust continues working its way into the economy. Bloomberg (12.15.06):

"Black & Decker Corp., the biggest U.S. maker of power tools, cut its annual profit forecast for the third time after a U.S. housing slump 'significantly'' reduced sales.

Black & Decker shares dropped the most in almost four years after the Towson, Maryland-based company said 2006 earnings per share will be $6.50, down from an October forecast of as much as $7.05."

Black & Decker Lowers Profit Forecasts on Sales Drop

"There may be 'additional pressure on our earnings,' said Chief Executive Officer Nolan Archibald."

As in this year sucked; next year could really suck.