Home Builders Fire Back at Peter Schiff

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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

Funny to claim that very few people could afford to buy homes when in fact we just went through a period of time where very few people could afford to buy homes (at least in some of the "hot" markets). The only reason some people could afford the outrageous prices being paid for homes was that the home builders had Fannie and Freddie shelling out hundreds of billions a year into sub-prime loans (let alone any other areas they were involved in). They were scooping up and putting up guarantees on subrpime MVS' left and right, mortgage backed bonds that despite a few spectacular blow outs, most banks didn't want to even touch despite the returns Freddie and Fannie were willing to guarantee.
While in life there is rarely a silver bullet, it is clearly a significant reason behind the housing bubble and the record profits many home builders enjoyed. Unfortunately most of us with half a brain had to sit back and watch as that $225,000 home we were saving for in 5 years went tp $305,00 and out of our budget. NOw that we can actually afford to buy that home, NAHB worry about their profits and make ridiculous claims about a total economic collapse because we can again afford those homes but they're more worried about their profits.

Allen of CA 3:08PM February 01, 2009

Mr. Howard,
You may have good intentions and as a member of our free-market economy you of all people should have confidence in it. What gave your industry great profits over the last several decades is the growth of debt. The debt-to-income ratio is too high. If you understood basic economics this was easy to see 5 years ago.
Sorry sir, but you should not be leading your organization as you did not consider that basic debt-to-income ratios as becoming dangerously high to those you represent.
You should go into politics where ones ambitions are placed before the welfare of those they represent.
Might I suggest you read Mr Schiffs' book Crash Proof,
or Robert Prechter, Conquer the Crash or the economist Ravi Batra, Ravibatra.com
Their analysis of the fundamentals appears to have greater credibility than the Polyannas or the self serving politicians.

mark of AZ 11:00AM January 31, 2009

Already very few people can afford houses, and thats becasue the prices are pumped up into the stratosphere where they could not be in the first place in austrian economics. This crash couldn't happen in austrian economics because this situation only came to be under a managed economy.

Mr. Obvious of TX 4:04PM January 30, 2009

Don't worry, Jerry Howard, you will get your bailout.
"an industry that in healthier times can be counted on to provide 15% of the gross national product"
The residential property industry should never be a pillar of the economy. It is not a productive asset, like a factory or a machine, etc.
"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."
A further erosion in home prices putting the banks on shakier ground is not a bad thing. The reckless banks should be allowed to go bust and the bankers should be barred from working in the financial industry forward.

ron_paulite of CA 1:44AM January 29, 2009

The key issue is that housing is still unaffordable. Bottom line.

Jeff Oviedo of CA 9:04PM January 28, 2009

I live in Dodd's district and I will vote for anyone over a Ron Paul acolyte like Schiff. Their race-baiting, isolationism, and conspiracy-mongering is truly ugly. And Austrian School economics? Get Real!
The basic mentality is go-it-alone and screw the other guy

Fred of CT 3:18PM January 28, 2009

...but he obviously does not understand economics. I mean real economics, not "what can I do with this" econometrics.
Very few people could ever afford houses. Most of the people who bought in the last ten-twenty years are nothing more than glorified renters and speculators.
Having a mortgage does not equal ownership.

shaneinwy of WY 10:52AM January 28, 2009