Due to the financial meltdown and resultant housing crisis, which started toward the end of the Bush/Cheney Administration in late 2008, the Total Pretax Losses of these 13 US Big Homebuilding Corps in 2009 were a huge $5,328 mil.....yeah, that's $5.3 bil.
What's happened since the Obama/Biden Administration took control of the wheels of the country?
Well, these Total Pretax Losses dropped to $891 mil in 2010, and further to $736 mil in 2011.
Thus the Total Pretax Losses of $5,328 mil in 2009 have been reduced by a monstrous 86% in 2011, in only two years.
In deriving Pretax Income or Pretax Loss, I start with Pretax Income or Loss under Generally Accepted Accounting Principles (GAAP), and then exclude several clearly unusual very large items relative to Pretax Income, such as Intangible Asset Impairment Charges and Losses/Gains of Debt Retirement.
Granted, there is an awful lot more to do to solve the US housing crisis. But it certainly doesn't help that the Republicans in the US Congress are preventing Fannie Mae and Freddie Mac from being cleaned up.
And they are also preventing Fannie Mae and Freddie Mac from reducing interest rates to the current much lower prevailing market interest rates on US taxpayer mortgages.
And they also are preventing Fannie Mae and Freddie Mac from lowering, in a wise, very measured, fair way, principal amounts on mortgages in which the homeowner is underwater.
How are they preventing these wise actions?
Well, they will not let the Obama Administration replace Edward DeMarco, the head of the independent US Federal Agency that oversees Fannie Mae and Freddie Mac. DeMarco was appointed for this critical position by President Bush in late 2008.
So far, DeMarco has continued to ignore wise Obama Administration recommendations to both shore up bankrupt Fannie and Freddie, and to also help US homeowners. These recommendations will spur the US economy and US job creation. And they also will reduce the US Deficit in the long run.
I think that unless the closed-minded DeMarco changes course, US taxpayers will demand that he be replaced, after all, they are bankrolling the continuing massive losses of Fannie and Freddie, and also being economically crushed by the US housing crisis.
When you review the below list of these 13 US Big Homebuilding Corps, there is only one which has generated a profit in each of the most recent three years.....NVR, which is headquartered in Reston, Virginia, which is in the DC area.
The US government workers located in the DC area, including the US Congress and their staffs, just haven't experienced the horrible economic pain of the rest of the country. They are in the Beltway Bubble, and don't have a good view of what is going on economically in the rest of the country. If they experienced the same pain, I think more would get done to make the country better economically.
Below here is the Pretax Income and Pretax Losses of these 13 US Big Homebuilding Corps for each of the most recent three years.
| Obama | ||||||
| Bump | ||||||
| PTI | PTI | |||||
| 1 Year | 2 Year | |||||
| PTI(L) | PTI(L) | PTI(L) | % | % | ||
| 2011 | 2010 | 2009 | Change | Change | ||
| mils $s | mils $s | mils $s | ||||
| Homebuilders | ||||||
| NVR | VA | 208 | 322 | 298 | -35% | -30% |
| Lennar | FL | 98 | 95 | (760) | 3% | 113% |
| DR Horton | TX | 12 | 100 | (557) | -88% | 102% |
| Standard Pacific | CA | (16) | 18 | (102) | -189% | 84% |
| Meritage Home | AZ | (20) | 2 | (155) | -1100% | 87% |
| Toll Brothers | PA | (29) | (117) | (496) | 75% | 94% |
| Ryland Group | CA | (33) | (61) | (252) | 46% | 87% |
| MDC Holdings | CO | (68) | (71) | (107) | 4% | 36% |
| PulteGroup | MI | (69) | (579) | (1,412) | 88% | 95% |
| AV Homes | FL | (149) | (36) | (62) | -314% | -140% |
| KB Home | CA | (181) | (76) | (311) | -138% | 42% |
| Beazer Homes | GA | (197) | (193) | (330) | -2% | 40% |
| Hovnanian Enterprises | NJ | (292) | (295) | (1,082) | 1% | 73% |
| Total all 13 | (736) | (891) | (5,328) | 17% | 86% |
