Large homebuilders get $6B+ bailout. Too big to fail?

[N Judah]

http://www.fundmymutualfund.com/2010/03/large-public-homebuilders-benefit-from.html

But some small builders say the souped-up tax break is primarily giving their large rivals yet another competitive edge. That's because the latest windfall looks less like a lifeline and more like a war chest. Several large builders are now sitting on more than $1 billion in cash and are snapping up tracts of land to be ready for the next building boom.

"These public (builders) sold hundreds of millions of dollars worth of land and took huge losses and wound up with hundreds of millions of dollars of checks from the government sitting on their balance books," said Ken Endelson, CEO of Kenco Communities in Boca Raton, Fla. "It was a real bailout. No different than the banks."

So the tax refunds helped a few public homebuilders that should of gone to bankruptcy survive, but for the others it just helped pad their war chest. So they can win again with the taxpayers help during the next real estate rebound...

For others, such as Pulte, Lennar and D.R. Horton, each with more than $1 billion in cash reserves, it's given them more financial elbow room.

Many large builders have been buying up developed home sites, often from banks that have repossessed the land from other builders unable to make loan payments. It's a smart move because the land is cheaper now and homes built on it can be sold eventually at a higher profit. The bigger companies also can afford to wait out the market better than smaller builders.

[AtticaFlinch]

"I pledge allegiance to the flag, and the corporations for which it stands..."

[Marksmu]

"I pledge allegiance to the flag, and the corporations for which it stands..."

Its a huge steaming pile of Bull $%^&*(. This type of crap is why most Americans are sick and tired of hearing about bailouts, handouts, health insurance, you name it.

Its time for another change. The one we got sucks more than the one it replaced. Every time I read something that happened with Washington, I already know its full of sweet hear deals and BS. Its all class warfare and Im sick and tired of it.

[AtticaFlinch]

Its a huge steaming pile of Bull $%^&*(. This type of crap is why most Americans are sick and tired of hearing about bailouts, handouts, health insurance, you name it.

Its time for another change. The one we got sucks more than the one it replaced. Every time I read something that happened with Washington, I already know its full of sweet hear deals and BS. Its all class warfare and Im sick and tired of it.

A huge part of me wants to round up all the CEOs and CFOs of massive corporations along with a big bunch of Washington politicians and grab them all by their lapels and shout at them, "You wanted deregulation! You wanted to set your own rules! You did, and this is what happens! You've corrupted our economy and driven more and more people into poverty, and you have the gall to ask us to fix what you broke?!"

The whole situation makes me angry on a visceral level.

That said, there's a part of me that understands the reasoning behind the bailout theory even if I disagree with the implementation.

[N Judah]

Its time for another change. The one we got sucks more than the one it replaced. Every time I read something that happened with Washington, I already know its full of sweet hear deals and BS. Its all class warfare and Im sick and tired of it.

I disagree completely that it sucks more than the one it replaced. I think most of this stuff (the bailouts, and the situation that required the bailouts) is the legacy of GWB.

"There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

-- Warren Buffett

[Marksmu]

A huge part of me wants to round up all the CEOs and CFOs of massive corporations along with a big bunch of Washington politicians and grab them all by their lapels and shout at them, "You wanted deregulation! You wanted to set your own rules! You did, and this is what happens! You've corrupted our economy and driven more and more people into poverty, and you have the gall to ask us to fix what you broke?!"

The whole situation makes me angry on a visceral level.

That said, there's a part of me that understands the reasoning behind the bailout theory even if I disagree with the implementation.

There is something we can agree with...finally. I hate them all too on a visceral level, though I hate the leaders in Washington even more than I hate the CEO's. The dumb CEO is willing to tell you, Im in it for the cash, cold hard cash and nothing more. The Liars that are our super corrupt politicians are pretending to be trying to help you out, while they destroy everything this country used to stand for.

Washington does not want to "fix" anything to make life better for everyone...they simply want to drag everyone to the same level so there is no more power, or wealth in this country. Once we are all equally poor they will be happy. Worst CEO's in the history of the world, ran the banks, and the real estate, and the home builders, and we get the worst President and Congress as a result.

Its all the CEO's fault...every bit of it. That and the lazy ass republicans who never tried to fix the screwed up system to make it better for everyone who was not just rich. Their laziness, combined with the idiot CEO's gets us to where we are today. F'ed