Builders Just Don't Get It

[James H. Bushart]

In a hurry to flood the market with even more empty houses, builders look for incentives for new home buyers.

I live in the midwest where these confidence numbers are at their lowest. Here, builders know that these two and three story homes that are sitting vacant and half built have as much to do with the "Baby Boomers" downsizing into smaller units as it does the slow market.

We are already years from bottoming out of this tail spin...the builders would turn that into decades if their lobbyists had their way.

AP
Homebuilder sentiment index plunges to record low
Tuesday November 18, 1:57 pm ET
By Alex Veiga, AP Real Estate Writer Homebuilder sentiment index slides 5 points to new record low in November


LOS ANGELES (AP) -- Homebuilders' confidence in a near-term housing recovery sank to a new all-time low this month, reflecting growing worries over the U.S. financial crisis, rising unemployment and weakening consumer confidence, an industry trade association said Tuesday.


The National Association of Home Builders/Wells Fargo housing market index, started in January 1985, tumbled five points to nine in November. The index stood at 14 in October after slipping three points from September.

Index readings higher than 50 indicate positive sentiment about the market. But the index has drifted below 50 since May 2006 and below 20 since April.

"Today's report shows that we are in a crisis situation," NAHB Chairman Sandy Dunn said in a statement. "Tremendous economic uncertainties have driven consumers from the housing market, and it's going to take some major incentives to bring them back."

In recent weeks, homebuilders have ratcheted up pressure on Congress to take steps that go beyond trying to reduce foreclosures. the industry wants lawmakers to enact new incentives aimed at getting reluctant homebuyers back into the market.

Specifically, they're asking for a 10 percent tax credit of up to $22,000 for homebuyers that purchase a home over the next year and a temporary interest-rate reduction on 30-year mortgages.

"The housing downturn has already cost America three million jobs in construction and related industries, and this downward momentum cannot be stemmed without substantive government intervention," said David Crowe, the association's chief economist.

The builders' proposed housing aid measures would cost the government an estimated $270 billion, and would amount to a short-term fix at best, Deutsche Bank North America analyst Nishu Sood concluded in a research note earlier this month.

Builders have grown increasingly convinced that only government intervention will help stem the downward spiral in home prices and rising foreclosures that have led to a dearth in demand for new and preowned homes.

Major public builders such as D.R. Horton Inc., KB Home, and Centex Corp., have seen their stocks hammered as housing woes have worsened.
The latest builder index reflects a survey of 422 residential developers nationwide, tracking builders' perceptions of market conditions.

Builders' gauge of current sales conditions tumbled six points to eight, while the index of foot traffic by prospective buyers fell four points to seven. Builders' expectations for sales over the next six months remained at 19, the NAHB said.

Declines in builder confidence were seen across the U.S., with the biggest drop in the Midwest, where confidence declined by six points. The other regions -- Northeast, South and West -- saw builder confidence slide by five points.

[Frank Magdefrau]

They are giving a whole new meaning too "Ghost Towns"

[nwagner]

"The housing downturn has already cost America three million jobs in construction and related industries, and this downward momentum cannot be stemmed without substantive government intervention," said David Crowe, the association's chief economist.

The builders' proposed housing aid measures would cost the government an estimated $270 billion, and would amount to a short-term fix at best, Deutsche Bank North America analyst Nishu Sood concluded in a research note earlier this month.

Thanks a lot Harry Paulson and G.W. Bush. Now every maligned industry expects multi-billion dollar handouts to shield them from the consequences of their boneheaded business practices.

[Gary Farnsworth]

Where is my bail-out? We are affected by the chicanery that happened with the invester banks. Our business is directly affected by home sales. If the builders get a break, we need one to. Editorial.

[jhugenroth]

Originally Posted by nwagner

Thanks a lot Harry Paulson and G.W. Bush. Now every maligned industry expects multi-billion dollar handouts to shield them from the consequences of their boneheaded business practices.

Once again Bush gets all the blame. And Congress is not included in this?
Oh, that's right, we don't want to blame a Congress that is comprised of a
majority of Democrats now, do we?

[Michael Larson]

Originally Posted by nwagner

Thanks a lot Harry Paulson and G.W. Bush. Now every maligned industry expects multi-billion dollar handouts to shield them from the consequences of their boneheaded business practices.

I would remind you that it was predominantly the Democratic congress that foisted this junk on us albeit with the willing participation of and at the behest Bush and Paulson.

Senate

House

[James H. Bushart]

I will remind you all that the politicians of all parties are dancing at the end of the strings to the tunes played by the lobbies that fund their campaigns...and other expenses. When Wall Street cashed in all of its IOU's, congressmen of both parties had no choice but to ignore the emails, phone calls and telegrams of their constituents and write the a trillion dollar check.

[Michael Larson]

The more things change the more they remain the same.

Look for them to find someway to make a bailout out of the big three palatable to the American public so they "save" all those union jobs.

[nwagner]

Originally Posted by mlarson

I would remind you that it was predominantly the Democratic congress that foisted this junk on us albeit with the willing participation of and at the behest Bush and Paulson.

Senate

House

Highlighting that the DemocRATS were tripping over themselves to jump on board with this idea simply reinforces how abhorrently communist this bailout scam is. It doesn't distract from the fact that these two ultra-NeoCons presented and hard-sold it, nor does it minimize their blame for the mess that it created.

[nwagner]

Originally Posted by jhugenroth

Once again Bush gets all the blame. And Congress is not included in this?
Oh, that's right, we don't want to blame a Congress that is comprised of a
majority of Democrats now, do we?

Who came up with this "brilliant" idea and then proceeded to shove it down our throats as absolutely necessary?

Oh, that's right, you Republicans blame EVERYTHING wrong in politics on the DemocRATS while burying your heads in the sand whenever Repugnantcan roaches are exposed.

[jhugenroth]

Originally Posted by nwagner

Who came up with this "brilliant" idea and then proceeded to shove it down our throats as absolutely necessary?

Oh, that's right, you Republicans blame EVERYTHING wrong in politics on the DemocRATS while burying your heads in the sand whenever Repugnantcan roaches are exposed.

It is BOTH parties that are to blame, not just Bush as you claimed. The Dems did NOT have to vote for anything they didn't want, as they are in the majority. Wow, if as you say, Bush SHOVED it down their throats, I guess I can liken the Dems to lemmings, willlingly following others off the cliff.

[ldapkus]

Originally Posted by mlarson

The more things change the more they remain the same.

Look for them to find someway to make a bailout out of the big three palatable to the American public so they "save" all those union jobs.

This was from the Senate hearing today:


During the House hearing Wednesday, Rep. Brad Sherman, D-Calif., asked the three auto chiefs seated at the witness table before him to raise their hands if they had come to Washington on commercial airliners. No hands went up. Then he asked if any planned to sell their corporate jets. Again, no hands went up.
Sherman and Rep. Gary Ackerman, D-N.Y., told the auto executives they were having a hard time justifying to their constituents bailing out companies whose chiefs fly around in expensive private jets. Ackerman said there was "a delicious irony in seeing private jets flying into Washington D.C. and people coming off them with tin cups in their hands."

[jhugenroth]

Originally Posted by ldapkus

..there was "a delicious irony in seeing private jets flying into Washington D.C. and people coming off them with tin cups in their hands."

If I didn't know what the story was about, I could have sworn it was talking about our beloved Congressmen and women.

[rbrady]

Toyota and GM decided to have a canoe race on the Missouri River. Both teams practiced long and hard to reach their peak performance before the race. BUT on the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat. A management team made up of senior management was formed to investigate and recommend appropriate action. Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 8 people steering and 1 person rowing.
So American management hired a consulting company referred to them by the US Government and paid them a large amount of money for a second opinion. The consultants advised that too many people were steering the boat, while not enough people were rowing. To prevent another loss to the Japanese, the rowing team's management structure was totally reorganized into 3 steering supervisors, 1 area steering superintendents, 1 publicity manager, 1 HR diversity coordinator, 1 union rep, and a rower. They also implemented a new performance system that would give the 1 person rowing the boat greater incentive to work harder. It was called the "Rowing Team Quality First Program", with a lunch and a free company pen for the rower. There was discussion of getting new paddles, canoes, and other equipment, extra vacation days for practices and performance-tied bonuses but that decision was held up in committee.
BUT the next year the Japanese won by two miles. Humiliated, the American management laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. The money from all sales and all forecasted moneys saved from further competition was distributed to the Senior Executives as bonuses and the next year's racing team was out-sourced to India.

The End. -- Henry --------------- www.henrymakow.com

[Gary Farnsworth]

Could all of this talk about bail-outs, auto exec hearings, be a front for something else? A conspiracy? Is it actually real? Was the money even paid out? Were is it? Where are the trucks hauling it? Could it actually be one last harahhh for Hallaburtin? Bush? I trully believe there is something else behind all of this. Obama does not know what he is getting into. Neither do we. Did we actually land a space craft on the moon? Does Nick still have that coconut? What is there to actually believe? Where is the proof?
Stuff movies are made of, and most of those are fiction.