We haven't had a burst. We have barely had a leak in the bubble. And I think that you'll see come spring, next quarter, that the hole in the bubble is going to be sealed up.

It's a balloon, not a bubble. Balloons inflate and deflate; bubbles burst.

Despite the best efforts of the F.C.C. to create competition, after the bubble burst, there weren't any competitive alternative to the Bells. Now that the cable operators are able to offer voice service to complement their high-speed data, commercial services are a cherry waiting to be picked.

California cannot continue to sustain skyrocketing housing prices that have ballooned over the last few years. The industry has been moving at a torrid pace to keep up with demand, but we expect prices will finally level off to a manageable level.

The slowdown in November will give builders an opportunity to clear out their standing inventory. We anticipate that 2005 will conclude with figures matching 2004, which was a very good year for the industry.

The annual demand for new homes in California continues to be in the 240,000 range, but the home building industry is able to provide only 80 percent of the total need.