US Homebuilders now admit what we've known here for too long - their industry has imploded and an epic housing crash is upon us

Not many homebuilders will survive this downfall. We won't need to build new homes in this country for years. Years and years and years. One word: Overcapacity.

KB Home is the new Global Crossing. Toll Brothers is the new Qwest. And the housing crash is the new telecom/dot-com bubble on steroids.

Confidence among U.S. homebuilders fell to a record low in October as declining prices, higher mortgage rates and loan restrictions scared off buyers.

The National Association of Home Builders/Wells Fargo index of builder sentiment fell to 18, more than economists had forecast, from 20 in September, the Washington-based association said today. Levels lower than 50 mean most respondents view conditions as poor. The index averaged 42 last year.

Bigger discounts and sweetened incentives have yet to revive demand as buyers wait for even bigger bargains, builders said. The report underscores Federal Reserve Chairman Ben S. Bernanke's warning yesterday that the housing slump will constrain economic growth into next year.

``The contraction in housing is going to be deeper and more prolonged than many people thought,'' said Kevin Logan, senior market economist at Dresdner Kleinwort in New York, who correctly forecast the decline. ``It doesn't look like home sales are reacting to discounted prices. A lot of buyers will wait until the market hits bottom.''