Stick HomeBuilder CEO's in Jail??????
The have been selling houses for the past seven years to people they knew or should have known couldn't afford their product. In many cases, the owned the mortgage companies that provided the financing.
How do you sell a $400K home to someone making $40K per year? You know what the outcome is going to be.....but nothing was going to get in these guys way for profits so they could dump their shares in 2005!!!!!!
Now we have millions and millions of homes being foreclosed. Many in the same communities that these jokers sold out of. The forclosures are destroying the values of homes around the country. Family savings are being wiped out. Homeowners are becoming prisoners in their own homes because they can't afford to sell.
The stress is mounting in neighborhoods all over the place. Neighbor's homes not being kept up. Transients infesting the residents and wild parties interferring with tranquility otherwise enjoyed by owning a home in a otherwise stable neighborhood.
You don't think these guys saw it coming....you bet they did.....just look at 2005 insider selling. Everyone knows when you leverage a mortgage up 5 and 10 times a person's income......the outcome is pretty clear.
We are now living with the consequences of this reckless behavior. We probably have 3-4 years of excess new home inventory that will need to be absorbed if builders stopped building completely for 3-4 years.
In the mean time these guys are flying in their jets, living on their yachts, and basking in the sun as homeowners and shareholders get the 2x4 up the backside.
If the homeowners were the crack addicts for leveraging up too high, the builders were the dealers peddling the overleveraged junk. They knew what was going to happen. Since when does America punish the users and reward the dealers??????????????????
Maybe we should force the HB executives to disgorge all the profits made from selling their shares of stock and put it in a foreclosure fund to help those that they sold homes. Sorta like reverse forclosure on the executives helping the forclosure problem they helped create....sounds like a win win for all.