Subprime not the only ones in serious trouble!

[sdrebear]

Beazer homes under investigation.

Beazer Homes In Trouble

NEW YORK -(Dow Jones)- Federal investigators have opened a broad criminal probe into lending practices, some financial transactions, and other dealings at Beazer Homes USA Inc. (BZH), BusinessWeek reported on its Web site Tuesday.

The North Carolina field offices of the FBI, the Internal Revenue Service, and the Justice Department have recently opened a joint investigation into Atlanta-based Beazer, the nation's sixth-largest residential homebuilder, according to BusinessWeek.

[sdrebear]

Another one in straight despair.

Lennar Homes Sucking Wind

My 3 favorite paragraphs:

In January, Miller laid out a yearly earnings goal of $3.69 per share in hopes that the job market would stay strong, the economy would continue to be healthy and the new-home market would demonstrate “traditional, seasonal improvement.”

On Tuesday, Miller said, “Given the state of the market, we do not expect to achieve our previously stated 2007 earnings goal, and we are not comfortable providing a new earnings goal at this time.”

New home orders were down 27 percent year-over-year, to 7,132, while housing starts were down 38 percent year over year. Lennar said its cancellation rate was 29 percent.

[LA_Renter]

I don’t know, I could be wrong but it really looks like this housing downturn is picking up some strong momentum. I’m wondering if we are getting close to some perverbial tipping point???

Wonder what BB is thinking tonight?? Duck!

[Cow_tipping]

Proverbial tipping point … well I think that was in 2005. I should know … I am cow_tipping …. moooooo
Cool.
Cow_tipping.

[LA_Renter]

Good point Cow_Tipping, I’m thinking more of Joe Sixpack here. Face it we bears, bubbleheads whatever you want to call us have been an alienated bunch. Ever since the subprime fiasco it seems more shoes are dropping than a caterpillar wearing NIKES. You have Bad headlines daily, Rising NOD’s and foreclosures, congressional hearings bearing down on lenders pointing out that millions could lose their homes, New home sales miss, Lennar miss and dropping guidance, Alt-A’s looking very shaky, Beazer now under criminal investigation (Worldcom and Enron are still fresh memories). It’s really starting to look nasty out there. Bubbles always have capitulation, I don’t think we are there yet but this thing seems like it is really unraveling. IMO

[Anonymous]

Sweet! I just shorted some more BZH last week.

[Anonymous]

Sports Bar Stock Market for ‘Next Generation’

Can you imagine what your comments look like to a person who is over 50 years age, designed and built his own home 18 years ago here for $54,000 ~ Now valued at $254,000, lost his last wife to deportation as an illegal alien due to governments Homeland Security Paranoia Patriot Militia Nerves and it is difficult for the ageism after over 35 years of solid work in the same hi tech industry here in Portland Oregon, as there are no desirable jobs left as all are outsourced now, but to find that this, my home town city boasts the highest influx of re-locators from oblivion now moving in like droves in exodus from So-Cal hell and beyond. To boldly go where only the natural beauty prevailed before; here to litter Portland as if it is a novelty like a new Disney Land attraction for home builders. That last beautiful frontier in the contiguous 48.

The attitude I see here is that none of you have ever bought anything on credit? Never had a late payment. Isn’t that what this country is built on? Every damned thing is on credit? The war even now at 9 BILLION per month is on imaginary money that we’ll never pay back unless they take your Social Security after you die? And they are doing that as I speak to each and every one who passes away daily. Why do you think the congress (and it is not just one guy that is driving this bill) is stepping in? Just to bail out lazy people that do not want to work as hard as you claim that you do? Trading money for venture capital sports bar stock market betting? Hard work? Give me break, please.

The nearly 3 million homes in the US now in foreclosure status currently is nothing to laugh at. It is degrading and destroying neighborhoods everywhere. Coming soon to a neighborhood near you.. I promise. Unless of course congress will now take over as the new banking regulators, just reported moments ago on NPR radio.

Would you rather go back to the days of 1929 and Herbert Hoover at the helm with everything crashing? Because that is about where it is right now, believe it or not. Your new so-called Demo’s as the liberals, as you so like to use the name game, are simply providing the protection for the lenders that the banks pulled the wool on their eyes for the last several years. The banks screwed the customers. It is agreed overwhelmingly. The customer is always right.

Mark S

[kewp]

The ‘tipping point’ is when the sheeple realize everything we’ve known for years; that real estate is over-valued, its due for a ‘major’ correction and it has a long way to drop before it hits bottom.

Mass public-perception is everything and this ball is just starting to roll. It was only a week or so ago that the housing collapse was front-page news on CNN. It’s all downhill from here.

To Mark S.,

I’m not sure what your point is? That a few million people that have been living beyond their means, probably for at least the last decade, are going to have to pay the piper?

What about the rest of us, the responsible fold, that *already* lead meager lives, because we are fiscally responsible? No fancy house, new car or HDTV for kewp!

Where is my pity party?

[barnaby33]

Mark S, WTF are you talking about? Are you a complete raving looney or just needing to vent a bit? From your post, it’s the only one from you I’ve ever seen, I going with Looney.

If you have a point to make please do so.

Josh

[cr]

I agree. “Mark S” has managed in 436 words to say nothing at all.

The only thing that has a hint of truth is foreclosures “coming soon to a neighborhood near you.”

Pretty much everything else is irrelevant or incorrect.

I will say this, aside from what your post alludes to about your own plight, are you suggesting the other roughly 97-99% of homeowners not facing foreclosure should have to pay higher taxes to bail the irresponsible, albeit lied to, and “right” ones?

[sdrebear]

Sure glad you guys commented on Mark S. I was so confused after reading his post that I wasn’t sure where to start. So I won’t.

I saw that BB said that the problem in sub-prime was contained. While we all know that is BS from Mr. BB, I received some industry news (I’m in marketing/advertising) that is one of many countering this notion.

Newspapers Suffering from Lower Real Estate Advertising

Real Estate is very wide reaching and old Ben better be careful how many feet enter his mouth at one time.

Here is the pertinent excerpt:

While some analysts warn not to draw conclusions from a single data point, the ad-revenue future for newspapers does not look bright. Younger readers coveted by advertisers are not reading print papers, and classifieds revenue is drying up due to problems in the housing market.

[gold_dredger_phd]

Mark S:
I can see the savers or prudent people of the country getting screwed by having to pay everyone else’s bills for the hookers and cocaine party that the Fed has thrown the last decade or so.

Those prudent people would be me and my parents and other like us who have lived within our means and not gone out on a “mortgage equity withdrawal” bender. I saw some of my neighbors buying all sorts of crap that they had to get a second mortgage for like new cars, expensive landscaping, $40,000 cherry-wood flooring and other crap just to ape what they see on “Lifestyles of the Rich and Famous.” They live in $1 million dollar tract homes, McMansions. And they dress them up like it’s some big estate.

Lower down on the food chain, the “mortgage equity withdrawal” bender is to buy boats, ATV’s, RV’s, etc. for all the recreation on the weekends and no doubt cruises and other expendables. I don’t think they are mortgaging their houses to pay for Johnnie’s Ivy League tuition or medical school.

Meanwhile, my parents, born during the Great Depression, seem to have a pathological trust of government and invest in tax-free municipal bonds and Fannie Mae and other socially engineered investments. They’ve lived in the same house for 30 years, paid off their mortgage, never bought a TV since the 1970’s (all the others were gifts from their kids or relatives), and never took expensive vacations. They are going to be screwed when the currency is debased more than it already is and when the municipalities choose to default on their bonds rather than face up to the municipal workers unions with their gold-plated pensions.

I’m putting my money in gold, overseas investments and foreign currencies and US blue chips. This train wreck will take decades to unwind.

Even the Wall Street Journal is admitting that there might be some losers with free trade. Like, maybe, the middle class? The rich will get returns on their capital and the poor will get government handouts. The middle class will not get Medicare, Social Security or government benefits in any meaningful amount and there will be higher taxes for Gen-X’ers and Millenials.

Get used to it, people. The American Century has ended!

[Author]

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