May 23, 2006

FLASH: Business Week interviews the Housing Bubble's Pinocchio

Here are some of the corrupt David Lereah's bizarre, misinformed and laughable quotes to Business Week.

Boy, this guy changes his tune every day, sometimes within the same session. I think what's happening is he's having a tough time staying "on message".

When you lie for a living, it's gotta be tough to keep track of the lies...

"We're going to drop significantly, but it's not a balloon bursting,"

"This is a soft landing for the housing markets."

"The demographic trends are wonderful"

"Everything still points to strong demand for home buying."

"If you go to Miami, Washington, Chicago, or Los Angeles, those are healthy economies, and they're not going to be affected by what happens in San Diego. "

"Prices are too high in San Diego because it's not an affordable city. The economy there isn't thriving, so it's hard to keep up there right now."

"I don't see the Fed taking rates up higher. They have to worry about the housing markets and the economy slowing too much. "

"I'm getting tired of all these doomsayers. We live in houses, and our houses are not going to crash. This isn't the stock market.... Local economies are relatively healthy. There's job creation -- this isn't a scenario where bubbles burst."


don't_know_nothing said...

I thank this guy for allowing me to buy puts and short HB stocks. Thank you VERY MUCH! Keep up the good work "D"

41cadillac said...

Robert I. Toll, chairman and chief executive officer, stated: ``Demand, while obviously diminished, has not disappeared. We believe many customers currently feel a lack of urgency to purchase due to their uncertainty over the direction of home prices: This has contributed to keeping many potential buyers on the sidelines.

``While the general economy remains healthy, the new home economy is beset by an oversupply of investor specs, builders' specs and specs created through buyer cancellations. We believe that once this excess inventory is absorbed, demand should once again exceed supply. This should increase customer confidence and improve perceptions of the market's health; then, we believe those buyers who have been on the sidelines will come back into the market and prices should start to rise again.

panicearly said...

David Lereah is basically saying
"who are you going to trust? me? or your lying eyes?" hey its worked so far, what a job lying day in day out.
imagine if he got a pimple everytime he lied, what a puss

sorry for imagery folks but thats what i see.

Number Six said...

Yes, we live in houses, but at the end of the day, a house is just a collection of wood, bricks, glass and concrete, and is ultimately a liability. In places not affected by housing bubbles, houses are relatively cheap; see, e.g.,

Put this house in Long Island and I guarantee you it goes for at least $500,000.

Anonymous said...

we live in houses so the price can't go down, only up?

"we're going to drop significantly", but he's getting sick of the doomsayers?

seriously, this guy has lost his mind. no, really, he's crazy. He never made any sense, I thought because he was just corrupt, but I think it's because he's nuts too.

Anonymous said...

let's see - his paycheck and bonus is from the national association of realtors, and he's also a property speculator/investor

nah, no conflicts of interest there.

what a joke and it's a joke the msm goes to him for quotes at all, especially without questioning him on is statements.

David Liareah said...

Stop making fun of me!

Anonymous said...


"The economy in San Diego is not thriving" ???

SD's unemployment rate is a mere 3.7%

WTF is DL talking about?

The problem is housing price growth (huge) vs. income growth (tiny).

Anonymous said...

He sounds a lot lot John F. Kerry. The real story is the economy is not on stable ground, in fact it's starting to crack up, with an underground of layoffs. The bull market is long in the tooth, inventory is building, soon you will have the perfect storm to push home prices back to 2001 levels.

People in Japan lived in their houses as well, it did not stop them from going down for 15 years.

new 200 Mbps BROADBAND over POWER LINES said...

Homes prices is akin to Stock Prices !!!

Why buy a home or catch a falling knife ?

Which means stay away from home buying due to falling home prices nowadays !!!!

Anonymous said...

The media should blackball David Lereah. He is going to make them all look like fools.

Anonymous said...

I am tired of the denial and outright lies in reports for Realtor Market conditions. Take a look at some bubble spots amd then look at what the reports have to say. They should be embarrassed and held liable for their false reports.

Sultan_of_Babylon said...

It is a great day for gold.
We are back on the upswing.

Yes, loaded up last week. Lost a bit of ground but made it all back this morning.

Sultan of Babylon.

brokersleaveyoubroke said...

"I'm getting tired of all these doomsayers. We live in houses, and our houses are not going to crash"

Flippers and speculators don't live in their houses. Who was the idiot interviewer who didn't question that huge lie?? Also, the stock market defines a crash as a drop of 20% or more. Our houses have certainly crashed before, why not again?

brokersleaveyoubroke said...

He sounds a lot lot John F. Kerry

Could you fill us in on some of Kerry's lies. Seems to me all the lies I heard during that campaign came from his opponent.

Anonymous said...

Actually the economy here in San Diego *IS* thriving. This guy has his head where his ass should be.

Wet_Chet said...

It should be clear that David Lereah, in his position as chief economist for the NAR, is required by his job description to put a positive spin on the housing market, no matter what the situation. If you could get his candid comments, I bet he'd say it's his responsibility to put the best face on the market to support the Realtors who pay his salary, and to support the economy overall.

Imagine how quickly things would collapse if the NAR chief economist publicly announced the imminent collapse of the housing market (not to mention the fact that he'd be looking for a new job the next day). Imagine if the President of the United States (any president, not necessarily GWB), publicly fretted over every negative economic report. I once read a book about the history of the Great Depression, and the most common phrase spoken by public officials, from banking to business to government, was "the fundamentals of the economy are sound", right down to the bottom.

There's a basic principle at work here: You can rarely, if ever, count on a public official (or industry representative) to be honest in public about bad news. And if they ever state that "there's no reason to panic", that's a prime indicator that the panic has already begun and they're trying to quell the situation.

It's always been this way, and it always will be. Those who do their own objective analysis based on real data will always stay ahead of the masses. Those who rely solely on statements from public officials, newspapers, and the AP wire will always be behind the curve.

clures said...

well put chet!

SenatorX said...

When a politician (or salesman) opens his mouth, he lies.

Fraudulent swine!

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