It's rare when I see things that make my jaw drop. Well, here's one from D.R. Horton.
This kind of attitude should have Fannie, Freddie, the Banks and mortgage CDO investors worldwide shaking in their boots.
The housing game is in its last innings, and desperation and fraud are spinning out of control as desperate builders, desperate lenders and desperate homedebtors do anything, and I mean anything, to survive.
Home builder D.R. Horton earnings plunge 85 pct
NEW YORK (Reuters) - D.R. Horton Inc. , the largest U.S. home builder, said on Thursday quarterly earnings fell 85 percent, in part due to charges related to the lower value of land.
The U.S. housing market has been in a severe downturn for the past year, with a mounting glut of homes on the market, increasingly resistant prospective buyers and tighter lending standards.
Builders have responded by slashing prices, throwing in freebies and cutting back on "spec homes" -- those built speculatively without a buyer.
"We face head winds, we believe, and strong head winds, we believe, during the course of the next six to 12 months from , illiquidity in the mortgage industry," Tomnitz said.
"As I've said to all our salespeople, if a buyer is warm and has a pulse, we want to put them on paper," he said.
47 comments:
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does this include the illegal Mexicans?
“D.R. Horton, the largest U.S. home builder, on Thursday said it has cut 10,000 jobs since last spring and now has a staff of about 7,300. Horton also said it has seem some increased defaults on relatively new loans.”
That pic made me spew my coffee. Too funny.
And to think it isn't even after market close on Friday, when the worst news is usually released hoping folks will be more focused on the weekend. But it is Friday...
I wonder if the CEO was drinking when he said that
People are still willing to buy.
But are lenders still lending to anyone with a pulse?
Is that picture of Greg Swann?
Wait a minute: I thought that lending to anyone with a pulse is what GOT us to this point?!?!
I'm so confused!
but wait, everytime i turn on cnbc, they have a marquee across the top of the screen informing me of the fact that the dow has hit another all time high.......but everything is so great , isn't it? i mean, i read that things are one way on the net, and then i hear people say another, in the media........somebody has to be lying.
Amid growing anticipation of the 2008 budget proposals from the chairmen who will navigate the path to conference, Sen. Kent Conrad (D-N.D.) and Rep. John Spratt (D-S.C.), the ticking clock of the federal debt limit has gone largely unnoticed. But the current ceiling of about $9 trillion is likely to be hit this fall, according to the Bush administration. Although any further raise has the potential to spark partisan and inter-chamber conflict, Congress must pass the hike to prevent the government from defaulting on its debt.
http://tinyurl.com/3cht4b
Right now everyone is so short there is a traffic jam holding the markets up:
http://bigpicture.typepad.com/
Talk about a weird market. Everyone knows half the shares out there are crap but they just levitate on and on...
Home builder NVR's net falls 36%
PrintDisable live quotesRSSDigg itDel.icio.usBy John Spence
Last Update: 9:11 AM ET Apr 20, 2007
BOSTON (MarketWatch) -- NVR Inc. (NVR : NVR Inc
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Last: 721.80-6.75-0.93%
9:29am 04/20/2007
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NVR721.80, -6.75, -0.9%) Friday said first-quarter net income fell to $84.8 million, or $12.96 a share, from $132.6 million, or $19.48 a share a year earlier. New orders for the quarter rose 8% to 3,917 units, the home builder said, while the cancellation rate dropped quarter-over-quarter to 16% from 17%. Analysts surveyed by Thomson Financial had forecast profit of $8.81 a share, on average. The stock fell 0.9% to $721.80 on Thursday.
Must be good news, the market is soaring ahead this morning
"As I've said to all our salespeople, if a buyer is warm and has a pulse, we want to put them on paper," he said.
LMAO!!!!! That's a classic.
EEeeehaw (cracks whip).
I just read a front page article in the Green Bay Press Gazette. They are going to build some 12-story condominiums near the stadium. They have a nice picture of a Hummer (presumably driving football players over to the stadium).
One wonders what happened to the condo project in the downtown area that was to over look the super fund site, err, Fox River.
Funny that the real estate is crashing every where else. But here they keep on proposing condos, none of which seem to get built.
Can't wait to see if this project gets built.....
DR Horton makes good homes. I've owned two of theirs and both were top quality. I hope if someone does by the company they keep it up.
A few more headlines like that and I'll start buying up on homebuilder shares. Just like you know the peak has arrived when everyone says it can only get better, you know the bottom has hit when everyone says it can only get worse.
Dow roars, 13,000 in sight
Everyone go home - nothing to see here
Say what you want, but I'm grateful for people like Tomnitz who are intellectually honest about what is really happening out there. The NAR and CAR would never say such a thing. It would violate everything written down in that little red book they all carry around...
I've said it before, Tomnitz has balls to tell the truth. He also has credibility.
I've posted here before and I will say it again. You people are crazy if you think the economy is tanking. You are either blind or don't get out very often if you think people have stopped spending money.
My sister's birthday is on Sunday. I wanted to get her a day at the spa for a present. I had to call 7 places before I could find one that had an opening this weekend. Folks, when people are out spending $400 for a day at the spa, it isn't a sign of economic doomsay, OK?
well, at least, Chief Executive Donald Tomnitz isn't sugar coating the bad news....i will give him that much......he told it like it is and didn't hold anything back....for some of the fund managers, i am sure it was humbling news, considering all the green triangles pointing up, they see on their computer screens......but i guess, when they hear that sort of thing, they go into plunge protection type mode, to help their investments in these home builders to stay afloat long enough for them to quietly get out...if possible...
"As I've said to all our salespeople, if a buyer is warm and has a pulse, we want to put them on paper," he said.
Hell, this sounds like a "Buy Here Pay Here" used car lot.
when people are out spending $400 for a day at the spa, it isn't a sign of economic doomsay, OK?
+++++++++++++
You are new here. The uber rich are getting richer. The gap is widening between the middle class and the wealthy. Well. the middle class is disappearing actually.
++++++++++++
U.S. Census: One in Five Lives on Less than $7 per day
By William Shanley
New Haven, Connecticut (April 16, 2007) From Combined News Services and Evolution Solutions Newsroom -- A 2004 analysis of data by the US Census reports that 60 million Americans now live on less than $7 per day. That's one in five in the U.S. living on less than $2,555 per year. At the same time, the richest 1 per cent now garners about 16 per cent of national income, double what they earned in the 1960s.[1]
While global income inequality is probably greater than it has ever been in human history, with half the world's population living on less than $3 per day, and the richest 1% receiving as much as the bottom 57%, the fact that so many Americans are living on so little, is particularly confounding.
The so-called “wealthiest, most abundant nation on Earth” now has the widest gap between rich and poor of any industrialized nation.[2] In light of the fact that one dollar spent in the Caribbean, Latin America and Asia buys what $3 or $4 does in the U.S means the quality of life for tens of millions of Americans is now on a par with huge populations living in the developing world.
And there’s more bad news to report from here. There has been no increase in non-supervisory wages since 1972. Twenty-five million Americans now depend on emergency food aid.[3] This rapidly increasing trend is a brutal reminder of how the extreme political right has eviscerated the social safety net in the U.S. over the last 25 years. At a time when globalization is in full gallop, and its destructive effects are being felt in many working-class communities from Detroit to Connecticut, the national crisis is being exacerbated by the rising power and stature of a winner-take-all culture that celebrates greed and egotism by rewarding the super-rich at the expense of the poor.
With only 6% of global population, the US consumes 25% of the world's resources. A profile of Connecticut, one of America's richest states, is quite revealing. It possesses islands of some of the greatest wealth in the world throughout Fairfield County, yet has three of America's ten poorest cities, Hartford—the capitol—Bridgeport and New London. The New Haven-Meriden corridor has the 7th greatest gap between rich and poor in the US--in close running with some of the Old South’s poorest and most segregated states, Mississippi and Alabama.
http://tinyurl.com/222vzl
or
http://civillibertarian.blogspot.com/2007/04/
american-dream-now-nightmare-for.html
Just because lots of people can spend $400 at a spa doesn't mean things are great overall.
Even during the Great Depression there were lots of rich people spending like crazy, amassing wealth at others' expense. And you can go to any South American country where poverty rates are 40-60% and find lots of people living in castles behind electrified gates. Doesn't mean their economies or countries are healthy.
Now, some are worried that looser standards may have permitted a big expansion of mortgage fraud. (Washington Post)
Reminding ourselves the the english word "Now" refers to the present time, how is it that Keith was all over this shit a year ago, and the Washington Post is just on it Now?
HomeDebter said...
Amid growing anticipation of the 2008 budget proposals from the chairmen who will navigate the path to conference, Sen. Kent Conrad (D-N.D.) and Rep. John Spratt (D-S.C.), the ticking clock of the federal debt limit has gone largely unnoticed. But the current ceiling of about $9 trillion is likely to be hit this fall, according to the Bush administration. Although any further raise has the potential to spark partisan and inter-chamber conflict, Congress must pass the hike to prevent the government from defaulting on its debt.
http://tinyurl.com/3cht4b
April 20, 2007 1:38 PM
I believe there has been a paradign shift in US politics. Republicans have become the spenders and the Democrats have become the bill payers.
If you cannot tell, Bush just robbed the bank for his boyz. Now whatever dumba$$ Demo walks in the W.H. door will get the bucket of cold water on her head!
I can hear the Fox "news" chorus already:
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
"IT'S CLINTON'S FAULT!"
Anonymous said...
I've posted here before and I will say it again. You people are crazy if you think the economy is tanking. You are either blind or don't get out very often if you think people have stopped spending money.
My sister's birthday is on Sunday. I wanted to get her a day at the spa for a present. I had to call 7 places before I could find one that had an opening this weekend. Folks, when people are out spending $400 for a day at the spa, it isn't a sign of economic doomsay, OK?
April 20, 2007 3:12 PM
Not only that but how many of those people are using credit cards, or basically money that they DO NOT HAVE? I would venture quite a few. All indicators point to the fact that credit borrowing has INCREASED substantially. Not only that but the vast majority of states have reported LOSSES in sales taxes. So OVERALL people ARE NOT spending money...
Keith I'm not coming here anymore, my shrink said this site is the cause of my depression - bye FOREVER
Not only that but how many of those people are using credit cards, or basically money that they DO NOT HAVE? I would venture quite a few. All indicators point to the fact that credit borrowing has INCREASED substantially. Not only that but the vast majority of states have reported LOSSES in sales taxes. So OVERALL people ARE NOT spending money...
----------------
Sure they are...other peoples money..IE: CHASE, VISA, MASTERCARD, AMERICAN EXPRESS, ECT,ECT...Yup Economy is right on track..No saving as usual.
sinis said... (blah...blah...blah).
You must understand that this is early innings in all star game to the bottom. You won't wake up one morning, flip open the paper, and say, "well I will be danged if all the world's financial markets didn't crash while I was sleeping", although I admit that I think it's possible.
Look at the Dow against Gold or a basket of foreign currencies and you will see the carnage to your buying power. You could of made a bundle by buying anything but the US market, and now you proclaim that everythings great. Everything is far from great, but not yet at any extreme as shorting set a new record and puts a floor in the bid for the markets.
Let me give you one more metaphor for the debt bubble that was created. You are at the top of a 14,000 foot mountain, and you have just made one little snowball, and what would it hurt to see it roll down the mountain so you let her go, and man it's beautiful as it starts down...yada...yada...yada, and the headline reads, "Alpine Town Wiped Out By Freak Avalanche".
Anonymous said...
Keith I'm not coming here anymore, my shrink said this site is the cause of my depression - bye FOREVER
Not speaking for Keith, but your depression is most probably caused by your financial problems. Otherwise this site should cheer you up because there are various ways to make money if you have the money to play with. It's all in the timing, and I learned long ago that the market will always move at it's pace and not mine.
when people are out spending $400 for a day at the spa, it isn't a sign of economic doomsay, OK?
+++++++++++++
You are new here. The uber rich are getting richer. The gap is widening between the middle class and the wealthy. Well. the middle class is disappearing actually.
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Oh please!! Uber rich? STFU with this over the top rhetoric. $400 for a one time spa treatment on one's birthday is not uber rich. You people need to get out more.
How far does the DOW have to go before you numbnuts admit you were wrong?
anyone with a pulse?
These RE GOULS, builders and friends will be Grave Robbing to keep their housing Frankenstein Monster ALIVE before long.
"As I've said to all our salespeople, if a buyer is warm and has a pulse, we want to put them on paper," he said.
--------------
"As I've said to all our
managers,
if an applicant is warm and has a pulse, we want to put them on
our sales team,."
-----------------------
truth, te he
Oh please!! Uber rich? STFU with this over the top rhetoric. $400 for a one time spa treatment on one's birthday is not uber rich. You people need to get out more.
((((((((((((((((()))))))))))))))))
Dear Anon-o-wimmpy B-Day BROTARD,
So, calling 7 places before you could find one that had an opening this weekend means the 7 spas were booked solid because every customer has a B day? Oh.
*************
What I am saying, in English, is
the NEW economic fact in a "for profit" business model is that to have the highest propensity for success one would cater to the very rich or sell 'cheap' luxury items.
Has nothing to do with how much I go party, which is plenty.
Now, go read, then f@ck off.
HERE:
Plantation Economy
Working longer, commuting farther and sinking deeper into a financial hole, America's middle class is shrinking, the rich are getting super rich … and the wealthy can afford to buy entire countries. It will only get worse. America is drowning in debt, mired in war and losing business to competition it didn't have before.
Manufacturing has been shipped overseas, and the replacement "service economy" worker has gone deeper into debt to pay the bills. Stocking shelves at Wal-Mart, floor walking at Home Depot or stuck in a cubicle job with no way out, the working majority are climbing down the ladder of success.
AND HERE Fu@ktard:
ChinaMerica
America owned the 20th century, but it won't own the 21st. While no power on Earth is emerging to rival the superpower's former status, China will weigh in as the world's economic heavyweight as well as a major military contender long before the end of the century.
As China booms and thrives and the US declines and weakens, the former Cold War enemies are exchanging roles on how to govern and how to run an economy.
China is becoming more American, and America is becoming more Chinese.
and
IF IT'S NOT TOO MUCH OVER YOUR PEA BRAIN HEAD, GO HERE FOR MORE:
http://www.trendsjournal.com/journal07.html
Realtors have always been willing to talk to anything warm that has a pulse.
Realtwhores will suck on anything warm that has a pulse if they think they'll sell a house as a result.
The economy is healthy when those workers are making EUR 60k a year in making useful things, instead of $8.50 an hour sponge bathing the cellulite of the poodleinapurse bytchnocratic class.
FMW I think you need a day at the sap my dear, you are way too angry and in need of some serious relaxation.
You fucknuts can't have it both ways. Can't say economy's tanking because people are buying expensive items then turn around and say economy's tanking because nobody's buying anymore.
Well I guess in HPland anything is possible: great depression, hyperinflation, US attacking Iran, china selling $1 trillion dollars...all predicted on HP and all wrong of course.
The CEO of DR Horton is a gloom and doom lunatic. I bet he is an HP'er
Europeans who invested in the US markets since last fall will have lost money or broke even if they cash out now and exchange back to Euros or Pounds. The US markets are flat and inflation is soaring. The proof is in the price of gold. It's all here in the chart below:
http://tinyurl.com/24o5sd
The ignorance shown here is amazing.
1. The globalized / interconnected economy means that those with top skills will earn huge amounts of money. Everyone else will be competing with the rest of the globe. Our lazy, stupid average citizens are not that much more productive that anyone else in the world. Why should they earn more? If you don't like it, improve your skills.
2. Of course manufacturing has left. Our militant, bad attitude unions have chased out every job that can move to another country. We do you think you deserve to be paid so much more for something that someone in China will do for 1/10 the price? Answer: You Don't! Job Over.
3. Our own personal and government borrowing and overconsumption has of course destroyed the value of the dollar. Once again, blame yourselves.
4. We as a nation have made a huge mistake spending our capital on housing - a consumption item - rather than productive capacity, whether in technology, education, or physcial plant. The housing market should crash, so we can go back to producing, not overconsumption.
5. Consuming less, having a 2,500 sf house instead of a 4,0000 sf house, drinking tap water instead of bottled water, driving cars that get 30 mph instead of suv's, and focusing on what matters will make us stronger as a people and a nation. I think a good strong reduced-demand type recession is exactly what we need. Sort of an enema of the body, mind, soul country, and economy.
But buy lots of ammo ahead of time, just in case!
FMW I think you need a day at the sap my dear, you are way too angry and in need of some serious relaxation.
************
Don't worry about anger management and monkeys and I will stop worrying about people like you SINKING and our great county and to quote an HPer "re-arranging the deck chairs on the Titanic."
I am not angry I care to much and Keith lets us call you names.
(:
Anonymous said...
The ignorance shown here is amazing.
*******8
Ditto Anon.
1.depression, Housing, supply's for construction (lumber etc)
2.hyperinflation consumer goods, (food gas etc)
A. Rich people buy
B. Poor struggle for necessities
C. Middle class disappearing
All right, got it?
And when China sells their reserves, and they may be doing so now, I am sure they will call you and let you know about it.
"Anonymous said...
2. Of course manufacturing has left. Our militant, bad attitude unions have chased out every job that can move to another country. We do you think you deserve to be paid so much more for something that someone in China will do for 1/10 the price? Answer: You Don't! Job Over."
That's why the big unions have all gone big time into the "public" sector: post office, state and federal workers, teachers, etc. There's no competition from overseas, no accountability, no competence required, and no product that has to compete on ANY market, (unless you count hopelessly arrogant bureaucy, being overpaid, being under worked, or cranking out stupid kids as a product!) And the great thing about it is, your employer never runs out of money for those (so deserved) pay and pension increases!
It should be interesting to see how those decreased property tax revenues affect "tax reform" proposals in the state legislatures in the next few years. Even the school boards here (teacher’s union intimidated and controlled) have fought any shift from property taxes to income taxes as a way of funding the school systems, since that would so “unfairly” affect the education establishment, one of the most highly paid special interests in this and, I suppose, many states!
It amazes me how many posts here state, 'Buy ammo'!
Most don't know which end of the gun to point at the intended!
This is also the same bunch that cries for more gun control laws, until their security is at risk. Then they want to protect themselves!
They buy some over-powered handgun (that they can't handle) go to the shooting range once, and their Dirty Harry!
Enforce the laws already on the books!
Buy a weapon, but actually learn to use it!
It's in the Constitution!
CEO Tomnitz isn't too bright. I have been after him for about three months and he keeps putting his foot in his mouth. Check www.drhortonfraud.com and www.homeengineering.com and sister sites for all the dirty details. Federal investigations are COMING.
CEO tomnitz isnt too bright. I have been after him and his Board of Directors for only three months and they keep putting their feet in their mouths. Find out all the dirty little secrets at www.drhortonfraud.com, www.homeengineering.com and sister sites. Federal investigations are COMING.
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