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alstry (36.32)

HB CEO's simply refusing to accept responsiblity????

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June 26, 2008 – Comments (5)

A comment this morning from Lennar's CEO:

Lennar Chief Executive Stuart Miller, citing rising foreclosures and unemployment along with sagging consumer confidence, said the industry needed government help.

"With the U.S. housing inventory growing in excess of absorption and limited credit availability, the prospect of further deterioration in the home building industry will likely become reality absent federal government action," he said.

"We are hopeful that the federal government will acknowledge the need for further reform and will institute programs designed to stabilize and facilitate the recovery of the housing market," he added.

Much of that inventory growth is coming from existing homes coming to market and homes being foreclosed.  Another big part of the problem comes from new home builders constructing spec homes.  The easiest way for builders to stop contributing to the problem would be to stop building specs and liquidating them at losses.

Right now there is an affordiblity issue with housing.  As prices for non housing related expenses skyrocket, the dollars left for housing declines.  The cost of homeownership must come into line with ability to pay.....that means continued price declines until the two balance.

Based on my analysis we still have a long way to go....especially if commodity prices keep rising and job losses keep increasing.

 

5 Comments – Post Your Own

#1) On June 26, 2008 at 8:14 AM, DemonDoug (32.31) wrote:

Next time a CEO clamors for government help, I swear he should be addressed as Comrade instead of Mr.

Congress should let the good businessmen in the HB industry who aren't overleveraged rise to the top by letting all the crap at the top be flushed down the toilet.

I don't know about you alstry but I want to see some perp walks with these HB CEO's too.

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#2) On June 26, 2008 at 8:23 AM, alstry (36.32) wrote:

When America finally wakes up and realizes what has happened to our great country.....I am not sure we will be able to afford to maintain jails.

Quite frankly, based on the incredible behavior I have observed over the past few years, especially in the HB sector.....I am not sure corporate executives didn't ship their money overseas anticipating what would happen one day.

With airfares climing so high, only a few may be able to get out.

How the F*^K can America take a shock of increasing prices 50-100% while wages remain stagnant or falling?

Do any of our elected officials have a pulse anymore....on either side????????

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#3) On June 26, 2008 at 9:35 AM, saunafool (98.79) wrote:

Haven't you guys heard?

We have upside capitalism and downside socialism for U.S. companies, as long as someone deems them "too big to fail."

For the average worker or small business owner, well you just have to make it on your own. No socialism for you. Socialism is un-American and only reserved for Wall Street and guys like Robert Toll who sold a few hundred million $ of his company stock before the bubble burst.

But, heaven forbid we raise taxes on the ultra-rich or ask them to contribute to society in any way. They are the ones who make the sun revolve around the earth! They made the earth round after billions of years of being flat!

So, cut the taxes and create loopholes for the rich when they are doing well, then hand them hundreds of billions of taxpayer money when their bets go wrong. It's only fair.

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#4) On June 26, 2008 at 11:09 AM, eldemonio (97.93) wrote:

What lessons will be learned from this economic downturn?  Hopefully, people learn that risky and poor financial decisions can have serious consequences.  Hopefully, people will learn that you can't keep spending like a cracked out MC Hammer and end up in a good place.  Hopefully, people will understand that the answer to our problems is not the government because the government is swinging from the nuts of Corporate America. 

Right now, it seems that corporations and individuals are still caught up in the idea that they are owed a bailout.  Americans for some reason view themselves as victims who need to be rescued.  This attitude has to change before our country will improve. 

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#5) On June 26, 2008 at 12:55 PM, DemonDoug (32.31) wrote:

Quite frankly, based on the incredible behavior I have observed over the past few years, especially in the HB sector.....I am not sure corporate executives didn't ship their money overseas anticipating what would happen one day.

Heh, that would imply that they were smart enough to do that.  Based on all the kool-aid they drank themselves, I doubt hardly any of them had the foresight to diversify out of the country.

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