http://biz.yahoo.com/ap/080403/homebuilders_congress.html "...would let companies use losses from 2008 and 2009 to offset profits earned over the previous four years, instead of the usual two-year timeframe. ...That's good news for big homebuilders" "Other big beneficiaries would be Wall Street banks such as Citigroup Inc., Merrill Lynch & Co. and Morgan Stanley." "Homeowners facing bankruptcy, however, won't find relief in the proposal. The mortgage industry fought fiercely to spike a provision to let bankruptcy judges rewrite the terms of distressed mortgages. It won that battle; the provision was left out." Always good to see them looking out for the little guy.
In addition to the "No Bank Left Behind" policy we now have "No Homebuilder left behind" "That's good news for big homebuilders such as KB Home and Pulte Homes Inc., which have been saddled with massive losses over the past year. Jerry Howard, chief executive of the National Association of Home Builders, said in an interview that the tax break is "very important to the building community." It will keep many small homebuilders out of bankruptcy, he said, and will prevent large builders from having to liquidate assets. Homeowners facing bankruptcy, however, won't find relief in the proposal. The mortgage industry fought fiercely to spike a provision to let bankruptcy judges rewrite the terms of distressed mortgages. It won that battle; the provision was left out." This bill is seemingly designed to stop from happening exactly what needs to happen for a recovery i.e. liquidation of assets and consolidation through eliminination of the weaker players. I can't believe a) How F*CKING STUPID congress are, and b) HOW everything is slaned to protecting banks that overleveraged and builders that overbuilt. Welcome to the lost decade for the US. US needs to have a second revolution against the New Aristocracy. Corrupt to the core, all that matters is lobbying power. Perhaps we now know what the rally was about. US Senators BTW are the only group that consistently outperforms the market. No prizes for guessing how or why. Oh and by the way, if you see people with plaited blond hair wearing tartan ransacking your cities they are Vandals and Visigoths.