This is actually very true. My father-in-law just got layed off because they are trying to cut costs to stay afloat. Word in the company is that they are having a very hard time renewing commercial loans to run the operations. This would be very bad as it immediately starts eating the cash reserves! I really don't think things look good here.
LP has made some questionable decisions to add capacity into the face of the market down turn... some just plain bad luck has exacerbated their challenges. No one could have predicted the severity of this downturn, but regardless adding OSB, LVL, and LSL capacity was a bone headed move. One that may cost them their franchise if it lasts past 2nd Qtr '09. Their cash burn is ugly. Good luck to longs, this smells like dead money for quite some time.