Weak Demand, Tight Credit Keeps Builders On the Sidelines

Don't fall for the building industry hype. Builders have defaulted on a lot of loans. Don't you think that has something to do with the banks not being as free and easy with them as before. Also, the builders now have a bill in congress called the Residential Construction Lending Act, HR 5409, that would put the risk of these already risky loans on TAXPAYERS by getting the Treasury Dept to guarantee them. GSE's like Fannie and Freddie already own record amounts of bad loans, and FHA has found many defaults are in new developments. We don't need any more of this industry's junk loans put on the back of taxpayers. if this industry had operated ethically we might not have had as bad an economic crash or not had it at all. Builders were instrumental in overbuilding, artificial price inflation, predatory and illegal lending, and that led to this bust. Just google Beazer Mortgage Fraud or check HUD.gov's RESPA settlements and see that many of the big builders were fined. But it didn't stop them, did it?

Crow of AZ 11:27PM July 21, 2010