Should Ara Hovnanian be prosecuted???
Ara gave an interview on CNBC this morning pleading for assistance for homebuilders.
When he was giving BS projections a few years ago and dumping shares at enormous profits....was Ara complaining about a problem in housing that he helped create???
Why don't HB executives give back all their ill gotten bonuses and nonsense stock options to help solve this housing crisis. We are talking about HUNDREDS of MILLIONS of DOLLARS.
Why hasn't a single politician suggested this appoach????
Now he complains that houses are selling below stick and brick costs? No kidding....I have been bringing this to your attention for months. The reason houses are selling so cheap is that there are TOO MANY houses. No where is this more evident than Fort Meyers where Ara's First Homes Division dumped homes on unqualified borrowers for years.....now I believe the company is under some sort of Federal investigation of some sort.
Folks...the solution to an oversupply problem is stop building houses. Period. It ain't too complicated. You can't solve oversupply buy subsidizing the building of more houses.
The only home sales that should be subsidized, if any, are EXISTING homes. As the economy slows...there will be more existing homes coming to market. There will be many more distressed situations coming up......but don't add to the problem by subsidizing the building of more homes in an over supplied market.
HOW BAD DO THESE HOMEBUILDER EXECUTIVES HATE AMERICA?????
Ara lied when he issued projections a few years ago and profited personally from the improper guidance.......now look at his face....he is clearly feeling the stress......but he has millions socked away.....what about all those families he sold homes to now getting kicked out on the street because neighborhoods he built are not living up to the promises?
Folks...many people were at fault for the current debt crisis.....but DON"T REWARD the DEALERS and punish the users. Apply justice fairly!!!!!!
FWIW, isn't the above analysis similar to the government borrowing more money to solve a too much debt problem????