Note to Home Builders: It’s the Jobs Stupid!

First it was the banks, and then it was the mortgage companies followed up by big auto. Then back to the banks again. Now home builders are applying pressure in Washington through their lobby for a $250 billion stimulus package of their own to save their industry from what I am sure they would classify as total annihilation.

But unlike the auto manufacturers, the home builders came prepared, at least with a slogan. They are calling their plan the “Fix Housing First” plan. The way home builders see it, a recovery in housing is what is needed in order to jump start the economy. The plan would provide new home buyers a tax credit of 10% of the home’s value, capping it at $22,000 along with federally subsidized mortgage programs. Problem is it isn’t housing.

It’s the Jobs Stupid!

We are way past the housing market saving this economy. Unemployment is shooting through the roof while companies try and figure out how to survive to fight another day. Ask yourself personally what it is that worries you more, housing or your job?

Citigroup just got bailed out over the weekend to the tune of $326 billion, so the home builders figured why not. Problem is, what about the massive inventory of existing homes? What about all the homes in foreclosure? Don’t we need to get those sold off before we put another shovel into the ground?

A record 1.2 million homes were in foreclosure during the second quarter of 2008. That represents 2.8% of all outstanding loans, up from 1.4% of all loans during the same period a year ago according to a report released in September by the Mortgage Bankers Association (MBA). And to make matters worse, another 490,000 of the 45 million home mortgages serviced by MBA members began new foreclosure proceedings in the same month. It just doesn’t seem prudent to provide a stimulus package to only half of the housing market.

But that isn’t going to stop them from asking. But maybe I just created the argument for the National Association of Realtors to pitch Washington for an existing homes stimulus package!

What Does AIG and Business Schools Have in Common?

SO, let me make sure I have this straight. I own a couple mortgage companies, an investment firm, and now, I have added AIG, a multi-national insurance company to the list of organizations my money has helped the Fed buy this year. I am sure I am forgetting a few, but there are just so many that I can’t keep track of them all!

AIG: Another Bites the Dust

I have been watching CNBC all day and I can’t understand the rhyme or reason the fed opted to save AIG while letting Lehman Brothers die over the weekend. Now, I realize that people much smarter than I am are making those choices, but they are using my checkbook to do it. So, someone, Paulson, Bush, Cheney, Bernanke, whenever you guys want to stop over for coffee and a convo, I’m here.

You Can’t Handle the Truth

Since we all have skin in the game, don’t you think that someone, somewhere, should be stepping up to a podium soon to tell us just what the Hell is happening? I realize I signed on for having my tax dollars spent on social programs, military defense, and foreign aid, but not being a Constitutional scholar by any means, I can’t put my finger on where in that pesky little document it says that my government, from time to time, was going to write humongous checks to people who run companies poorly?

I have the answer!

Earlier in the week I ranted about wanting to blame someone for this mess. Well I found the answer. Business Schools. That’s right, Wharton, Stern, Sloan, what the Hell are you guys doing? The people you are turning out don’t seem capable of doing anything but negotiating huge golden parachutes for themselves after they drive whatever company they happen to be running into the ground. Your all in time out until you figure out how to graduate real leaders, now back to class!

Blabrmouth.com - Weekend Update

Republicans to Trade Oil for White House?

Well my fellow Democrats, looks like it is going to be our year. We are finally going to get a serious crack at winning the White House. I know they say the race is close, but McCain is going to suffer for the sins of Bush and the people just want to rinse their mouths out and start anew, and that’s exactly what Barack Obama is selling.

UBS Shutting Down Offshore Banking - I’m Sorry, What?

I’m sorry, what did you say? When the hell was that legal in the first place? Did I miss something at the last international banking scam meeting? Somehow UBS was able to sneak $18 billion dollars out of the United States and into 19,000 secrete bank accounts offshore.

US Air To Pilots: Don’t Top Off!

This has to be the most ef’d up story this month. Seems US Air is trying to increase fuel efficiency by….USING LESS EFFING FUEL! That’s right boys and girls, US Airways pilot’s union said yesterday that the airline is hammering pilots to use less fuel than they feel is safe in order to cut costs.

Note To Big 3 - Learn or Die

So Volkswagen is going to start building cars in Chattanooga, Tenn., Good for them. That makes like what…everyone that makes a car has a plant in the United States? Only problem is, the American car manufacturers can’t seem to get it right.

Viacom - The Only Winning Move is Not To Play!

Smart move Viacom. Unfortunately it took your crack legal team thousands upon thousands of hate letters to figure out that if you pushed this move you would suffer greatly in the pocketbook.

Headlines Suck!

As I have told you guys in previous posts, I scan about 1000 plus news feeds a day to pull out one or two stories that catch my eye. While I was working on this post last night I noticed that it was just one negative headline after another.

Fannie Mae & Freddie Mac: What’s The Deal?

Rumors flew last week over the health of the two giant mortgage companies. Were they going to be taken over by the Government? Were they going to go bust? What was their cash position? Then you here they were fine, no problem, plenty liquid, plenty of capital.

Fannie Mae & Freddie Mac: What’s The Deal?

Rumors flew last week over the health of the two giant mortgage companies. Were they going to be taken over by the Government? Were they going to go bust? What was their cash position? Then you here they were fine, no problem, plenty liquid, plenty of capital. You don’t know who to believe, so you end up believing whoever screams louder.

I want to know who is responsible for the miss direction campaigns. Maybe these two quasi-governmental agencies are liquid and have the capital to weather the storm…..or neither has a pot to piss in or a window to throw it out of. Either way, someone is winning the PR war and the truth needs to be told. These firms are bell-weathers of the American economy and any chink in the armor is a tell tail sign that the United States still hasn’t seen the bottom in the housing mess.

Unfortunately, you can’t get a straight story, not even in the same article. So why doesn’t someone from the two mortgage backers come out and set the record straight? My fear is the naysayers are right and Freddie and Fannie are busy working on bail-out packages behind closed doors at Black’s in Bethesda this weekend.

IndyMac tanked on Friday, will open today with a new name and a new attitude, and a new owner…you and me. But there is a silver lining, I think ( and who the hell cares) that this will be the final cleansing that the market needs to start rebuilding. I mean there really isn’t worse news that can be reported anyway right? I mean I guess McCain could win but that would be the end of civilization as we know it.