Home Sales Down The Toilet While Bush Flushes

Posted on September 27, 2007
Filed Under commentary |

The news about the housing market could not be worse. Actually, it not only could be worse, it no doubt will be soon.

But, thus far..sales of new homes in August posted their biggest year to tear drop in some 37 years!!!! You read right. 37 years!!! Now that is impressive. Except when you consider this…these figures are from slightly BEFORE much of this housing mess became public so the situation is likely much worse than it already seems.

Add to that, this: KB Homes–this nation’s number 5 builder of homes–had a larger loss this past quarter than anticipated and all because of tighter mortgages combined with an ever growing supply of new and existing homes.

Even more shocking are some of the quotes coming from KB Homes’ Chief Executive, Jeffrey Mezger. Here they are:

“At this time, we see no signs that the housing market is stabilizing and believe it will be some time before a recovery begins.”  Wow, that’s depressing.

But wait. He ain’t done—”Rising foreclosure rates are intensifying the problem of surplus inventory and will likely drive further home price reductions.”  Not bad for an even more depressing quote,right?

Well, hold on cause here comes one more from the dude– “We expect housing industry conditions to continue to worsen through the end of the year and into 2008!!”  That sounds like the latest U.S. troop commitment to Iraq.

Good thing Washington is in the firm grip of a chief executive who has a business school background..imagine what would happen if he didn’t know what he was doing???

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