Builder loses $89-million, and it's good news!

Big time home builder Lennar, a Tampa Bay area mainstay, lost $89-million in its third quarter that ended Aug. 31. Sales were off by about half.

But all failure is relative. Lennar lost $513.9-million in the third quarter of 2007. Last year's disastrous performance was partly tied to the company's selling off or breaking contracts on land it no longer needed.

Locally, Lennar purged itself of 8,300 lots less than a year ago. The fire sale buyer was Tampa's Metro Development Group.

Lennar president Stuart Miller reported that the company's East division, which Florida occupies along with Virginia, Maryland and New Jersey, outperformed the rest of its divisions last summer.

But Miller emphasized that "the housing market continues to search for a bottom" and bemoaned lack of government action to stabilize home prices.

(He must have missed the proposal for taxpayers to assume $1-trillion in bad mortgages based on the two recent housing rescue plans. So much for corporate gratitude. )

*

Comments

[Steve Simon]

To be complaining about lack of Government action is ludicrous.
The more cerebral types (ahemmm)are complaining about the haste of the Government's action to start the $1,000,000,000,000.00 Bucket moving!
I think more "Golden Parachutes" should have been used to offset the taxpayer's blood sweat and tears...
There needs to be legislation that voids the ability of a CEO or CFO of a giant firm from profit at what many call criminal levels while the company is going under. Use the human resources in the "Think Tanks" to come up with a way to make executives accountable (in public companies) and you will have done something!
I posted this morning (on my blog) what I thought should be done; but I certainly am not liking this carte blanche bailout express...
Just my thoughts :)

[James Thorner]

All-upside-and-no-downside Capitalism isn't Capitalism at all.

[Tino]

I think the bailout is a dreadful idea, and if it takes a market collapse for things to sort out, then so be it.

However, Mr. Simon, the local socialist, neglects the fact that CEOs with large holdings of stock in failed firms lose it all.

If investors do not agree with the other payments to executives, then they should not invest.

Bringing the government into limiting the compensation structure of investor-owned firms is an extremely dangerous precedent. If it passes, we will be debating in five years the massive exodus of American firms to foreign lands.

[I also think that we should bring back debtors' prisons, but that's another topic completely.]

[Grant]

"bemoaned lack of government action to stabilize home prices"

What an absolute joke!

[Steve Simon]

@ Tino, I don't recall making a personal attack on you?
But I will cede this space and comment no more. You are obviously threatened.
Mean people, especially without call are to be avoided.
Good'bye :)

[Tino]

SS,

I am referring to you as a socialist because of your repugnant views in this blog that the government should seize private property and allow government employees to live there for free.

If you are going to advocate ideas that would be welcome in North Korea, then you should be able to withstand the ensuing criticism.

[James Thorner]

Tino and Steve,

You're both valuable commenters I personally enjoy reading. I think Tino's comments on Steve were mild and well within the realm of normal blog give and take. I know you're not a Socialist, Steve, so it shouldn't pain you if someone mistakes you for one based on a single comment.