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Home Builders Fire Back at Peter Schiff

January 27, 2009 RSS Feed Print

Jerry Howard, the president and CEO of the National Association of Home Builders, sent me the following response to The Home Front's recent interview with Peter Schiff.

Very few people would be able to afford a home if the government ever adopted “notorious bear” Peter Schiff’s laissez-faire policies on the housing crisis [“Peter Schiff: Let the Housing Market Crash”] because most workers probably wouldn’t have a job. The confidence of consumers and the financial markets has been rocked hard enough by declining housing values. A further erosion in home prices would take an even greater toll on household worth, accelerate foreclosures and put the banks on even shakier ground than they are on today. It is worth noting that in the weakest housing markets, the going price for a typical home has sunk below its replacement costs. The current oversupply of housing is a direct result of rampant foreclosures, not housing production, which has slumped to a record low pace. Pulling the plug on an industry that in healthier times can be counted on to provide 15% of the gross national product is a prescription for a total economic meltdown. Mr. Schiff, apparently, wants to bring it on.

Jerry Howard

President and CEO

National Association of Home Builders

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This is a typical response from a lobbyist trying to defend his industry. Howard said "The current oversupply of housing is a direct result of rampant foreclosures, not housing production, which has slumped to a record low pace." Hello, paging Mr. Howard! If there are so many homes for sale on the market, why should you continue to build new homes??

Mark of IL 1:52PM February 11, 2009

When was the last time Jerry and the rest of the "Home Builders" picked up a hammer and drove a nail. They have been speculators in real estate. Now that the speculation is bust, they want their share of the "bail out." It will be a good while before they will be able to speculate on unsecured capital again. And those of us who haven't leveraged every bit of the assets in our homes have not lost anything in real dollars. That only comes to play in the buying and selling game. Those who play in that game are the ones coming up short, just as in the internet bubble. Homes should be built to live in, not play with.

Don of TN 5:49PM February 03, 2009

Dear Mr. Howard
You have failed to understand that this inflated housing market is a result of the policy you want to continue implementing. Creating money out of thin air, always trying to find a new way to finance the next boom won't work it never has worked. So quick asking responsible people to finance your dead end projects. Real wealth has not been created in the past 30 years only this ficticuos paper wealth we have all come accustomed to, and you want to create a whole new bubble with your already failed policies. Mr. Howard only real sacrifice can bring us out of this mess not more inflating and devaluing of our money supply. Get a grip on reality, their has never been a fiat currency that has survived throughout history. So your wanting of more dollars pumped into the system will only lead to more strife and you writing about how we need more money pumped into the system.

C. Steven Weirich of IL 12:59PM February 03, 2009

Home Builders Fire Back at Peter Schiff

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