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"Facts" From California Home Builders

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May 12, 2008 – Comments (0)

whining homebuilders

Interesting. Click this link (which appears next to Peter Viles great "L.A. Land" feature at the L.A. Times), and you are sent to a home-shilling and save-our-butts-legislation-begging website run by... wait for it... California home builders.

Oop, kinda gave that away in the title, didn't I?

Yes, California home builders, the ones who fomented the biggest regional housing bubble in one of the biggest national bubbles in the largest globabl bubble in history, they're concerned, deeply concerned, that you, dear Californian, might not have a house.

Well, they're more concerned that you're not buying a home with badly borrowed money, because this means they're stuck with spec inventory. It means prices on the junk they already moved will see further drops because of foreclosres and failed flips. It means that many of them will bleed to death for lack of cash flow long before there's any "upturn" in the market. And that's bad for them.

They may have neglected to explain everything as I did in the last paragraph. Sometimes, you need to read between the lines. But, you can feel their urgency in garbage legislation like this, or these, all designed to support banks, builders, and politicians' sense of self-worth, rather than actually help people into affordable homes, as it's claimed.

If politicians and builders really wanted people in affordable homes, they'd let the da**ed prices fall and stop complaining about the loss of a bubble that was never anything more than hot air. End o' story. 

Hat tip to Housingpanic for bringing the L.A. Land blog to my attention. 

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