Major U.S. home builder Lennar Corp. (NYSE: LEN) announced this morning that it will have earnings in their 4Q almost 50% below estimates and that they are taking about 1/2 billion in impairment charges.

As with other previous builders before it, this sets a new record in impairment charges.

And yet the financial media continues to bleat that the worst in housing is behind us. I've heard convincing arguments why the HB stock prices have remained resilient through this downturn, but please, make no mistake -- the housing crisis nowhere close to the bottom. Indeed, here's Lennar CEO in today's press release:

"Market conditions continued to weaken throughout the fourth quarter and we have not yet seen tangible evidence of a market recovery."

Cramer has an article up now on RM where he essentially calls the Lennar situation an outlier...it never ends!!

Happy New Year to all.

Happy new year !

Asian markets rallied, and so did FTSE 100

FTSE 100 up 1.45% today?

Who is buying and why?

A slow day stockwise, so here is an update on Elliot Spitzer, who Bill frequently mentions.

Mr. Spitzer was sworn in Monday as New York State governor. He did wear his new Hickey Freeman suit, manufactured in Rochester, fulfilling his first campaign promise. He may have also sampled a Garbage Plate, a Nick Tahou's Rochester delicacy, which was served at his outdoor inauguration. (A big fuss locally about both of these items) If he ate the whole thing, he's 20 pounds heavier now.

He will have his work cut out for him. Bill often comments on the taxes and indebtedness of U.S. residents. New York State ranks 1rst in taxes and 2nd in indebtedness. Few other states come close. Just as officials fear that, upon Castro's death, Florida may see a huge surge in Cuban boat people, so Canadians ought to fear that if Mr. Spitzer does not succeed in bringing relief, New Yorkers en masse will cross Lake Ontario and set up shantytowns next to Bill's home on the northern shores., especially as he leaves home a lot to gallivant among the islands.

Here is a Spitzer blog I came across from someone who is obviously a believer. It's a very thorough log of his efforts and accomplishments. Perhaps Bill will enjoy it, though it's not as if he doesn't have anything to do with his time.

http://spitzerdayone.blogspot.com/

tom sheepngoats said:

"He will have his work cut out for him. Bill often comments on the taxes and indebtedness of U.S. residents."

This notion that the U.S. government, on the local or federal level, has the ability to indiscriminately raise taxes in order to justify higher budgets and more spending will at some point bring the general U.S. populace to the brink of financial disaster.

Here in SW Florida, property taxes just went up across the board for those who own non-homestead properties. That is, if you own a second home either as a vacation home, or as an investment property, you got nailed pretty good by the local tax collector.

How much did they go up ? On one property that I own, the property taxes went up 60.6% from last year. How in the hell can these govt. justify such a ridiculous increase ?

What better way to discourage potential investors and "snow-birds" from buying properties than to club them over the head with dramatically higher taxes?

The reason ? The local governments coffers were in many cases overflowing from the increased real estate transaction over the last few years due to the real estate boom.

So what did these local govt. officials do ? They went on a spending spree like a 12 year old who just got a cash gift from their grandparents.

The idiots running our govt. (from small town USA all the way up to the federal level) seemingly have absolutely no concern whatsoever for anything but what they can see 3-6 months ahead.

Until the govt. learns to better manage the public's resources, and improve the implementation of their budget as most households are required to do, the U.S. is increasingly headed for an incredible fiscal disaster at some point.

This kind of craziness simply cannot last forever.

Anyone see the DJ futures ?? What the heck is going on that is NOT normal !! lol up 69 ?!

This is lunacy.

ALOHA !!

Here in the State Of Hawaii ... USA ... we have a surplus budget and the lowest unemployment rate of any state. Annual property tax for five acres, located one and a half miles from the beach ... oceanview ... with a house and business ... $398.00!! State sales tax ... 4.167%!

Average 2006 taxes per person in the USA including state, local,federal and excise ... 52.4% and rising!

Bush FY 2007 Budget calls for a 52% increase in individual tax and a 13% increase in corporate tax by year 2010.

Property taxes will be the least of our worries once the bill comes due for Iraq!

Kaimu,

General excise tax in Hawaii went up .50% starting
1 Jan 07 to pay for our new mass transit. New rate for sales tax is 4.667, at least on Oahu. My projected cost of living budget from 2006 to 2007 increased by 11.62% with no changes except rising prices (its nice to know gov't say inflation is running <3%). Real estate taxes paid are one of the best bargains around.

ALOHA !!

For those of you who do not know much about Hawaii there are over 250 islands in the Sandwich Island chain yet only five that most tourists visit when coming to Hawaii. Each island is considered a seperate county(makes sense). Like Telestar3d says Oahu is on a different island than mine. I am on the island of Hawaii(Hawaii county). Sales taxes vary by county. Oahu is where Honolulu and famed Waikiki is ... Telestar3d I believe Donald Trump should pay for Oahu's mass transit!

When I am elected governor of Hawaii my plan is to seceed from the USA and turn Hawaii into the Pacific equivalent of a "Monaco/Ft. Knox"!!! Think about it ... the Atlantic has Bahamas and Bermuda ... Europe has Swiss and Isle Of White and Jersey ... what does the Pacific Rim countries have? Nothing !!! Also what's more isolated than Hawaii? Nothing like a 5,000 mile wide moat!!! Also Hawaii used to be a monarchy before American industrialists and their hired US government gunboats invaded and occupied! Once the USA starts to reneg on its "welfare" payments(bribes) Hawaii residents will look more favorably at seceeding ...

Dreamers dream ...

ALOHA !!

Oops ... FYI ... Donald Trump is building the new Trump Tower Waikiki(38 stories high) right next to our favorite hotel in Waikiki, the Outrigger Reef On The Beach! Should be lots of celebrities trashing up the beach now ...

What a construction mess at Lewers Street! I see a nice 360sq. ft. studio condo starts at $445k to $890k depending on the view(city or ocean)and a one bedroom condo goes for $1.7mil to $2.3mil and a three bedroom $4.5mil!!! I noticed the top floor(penthouse)is not for sale! Must be Donald's perch ...