Next Bailout Going to Homebuilders?

[GoLeft TV]

Run time: 03:50 https://www.youtube.com/watch?v=pRu1ROJDbXQ   Posted on YouTube: January 12, 2009 By YouTube Member: Views on YouTube: 0   Posted on DU: January 12, 2009 By DU Member: GoLeft TV Views on DU: 326

 
Despite the GOP spin on the issue, America's homebuilders are not begging for a handout like Wall Street did. They are simply lobbying Congress to spend the remaining $350 billion of the bailout package on things like tax credits for new homebuyers and on making sure average Americans don't continue falling into foreclosure. Mike Papantonio of Air America's Ring of Fire appears on Fox News' Bulls and Bears to debate the issue.

[flamin lib]

1. Ya' wanna' know how bad the housing industry is right now?

My wife works for one of the top three homebuilders in the US. They have closed 70% of their offices. That means 70% of their employees are now unemployed. Two years ago they had 28 attorneys across the US. They now have 3.

This particular company did not participate in the sub-prime market. They had their own financing company and worked with A paper only. They actively discouraged participation by sub-prime lenders to protect the integrity of their subdivisions, to prevent foreclosures from damaging the value of their branded homes.

The ripple effect of the home building market is devastating. Beginning as far down the chain as commercial tree growers, it radiates up to investment banking. If anything needs fixing, this would be the place to start.