builders get breaks from congress
"WASHINGTON (AP) -- Homebuilders and the mortgage industry are emerging as big victors in a bipartisan agreement reached by Senate leaders on legislation designed to limit the housing crisis. The $15 billion measure, announced Wednesday by Majority Leader Harry Reid, D-Nev., and GOP leader Mitch McConnell of Kentucky, contains a $6 billion emergency tax break that would let companies use losses from 2008 and 2009 to offset profits earned over the previous four years, instead of the usual two-year timeframe. ADVERTISEMENT That's good news for big homebuilders such as KB Home and Pulte Homes Inc., which have been saddled with massive losses over the past year."
This is good news and bad news at the same time. The good thing is that more builders will stay in business, so hopefully a few more houses will be built. The bad news is that distressed land sales are over, so there will be no chance to grab cheap land to build a cheap house on it. Biggest winners: floridabuilder's Tier 2 sells. Biggest losers: greedy builders like MDC who sat on their a..s during the downturn because they wanted to pay less than 30 cents on the dollar and will now have to pay the whole dollar because sellers are no longer distressed. Yet another victim: floridabuilder. No more cheap land for his real dollars and no more virtual dollars from shorting builders in Caps.