The video discusses the share price of Lennar (LEN) from August 26 to the current date. During this period, the share price moves between $120 and $145. A catastrophic earnings report triggered a price plummet. Homebuilders used interest rate buy-downs to keep home prices high. When this financial engineering failed, profits declined, and the share price dropped. The company is artificially propping the market, affecting comparable home prices. The speaker believes this to be unsustainable, it is financial engineering catching up with the home builders. With profits down 46 percent, the speaker says the company is having to take a 100K loss on each home to keep the homes selling at 500K. If home sales drop and inflation continues, the labor market will weaken and increase unemployment, leading to a potential recession.