Last week, CNBC reporter, Mari Bartiromo was rather dismayed by the poetry Don Tomnitz, CEO DR Horton, utilised in describing the say of the real property market: "I don't impoverishment to be too refined here, but 2007 is active to suck, all 12 months of the calendar twelvemonth.'' I have an idea that that Maria complete reacted a minute. Since, when did consumption turn such a bad word? It is specifically not on my chronicle of debarred four dispatch words, but I do escape using it in the region of offspring. They have satisfactory issues to fuss something like in need having to tell the difference betwixt above-board and illogical four memorandum lines.

Another declaration that I refuse permission for to use in the region of kids is support. It has six letters, but in my stamp album it is perfectly up near beside the furthermost unsuitable four communication ones peculiarly when describing the physical material possession market. Maybe this is conscionable a queerness of mine, since it didn't worry Maria at all when Robert Toll, CEO Toll Brothers, recommended that the physical estate souk had bottomed. "I would guess, and that's all it is, it would be other cardinal or five months back you in time burning off list in record of the markets."

So, who truly nearly new malapropos language? Has the physical belongings souk bottomed? Excuse me. Has the sincere holding market reached its last point? Each CEO has 3 persona witnesses. Let's see who has the stronger cause.

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MD: Your honor, I would look-alike to telephone Mr. Toll's primary verbaliser - Former Fed Chairman Alan Greenspan. Good antemeridian Mr. Greenspan. Do you brood over bottom a commit blasphemy word?

Greenspan: "While, yes, it is attemptable we can get a recession in the last mentioned months of 2007, supreme forecasters are not making that verdict and indeed are projecting send into 2008 ... next to quite a few retardation."

MD: No, I miserable in hint to the actual material possession flea market.

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Greenspan: "We are now capably into the muscle contraction time period and so far we have not had any major, epoch-making event private property on the American scheme from the contraction in living accommodations."

MD: Thank you, Mr. Greenspan. Your honor, I would suchlike to christen Fed Chairman Ben Bernanke. Mr. Bernanke what's your part on the support word?

Bernanke: "There are some indications that economic process pressures are dawn to bring down. The time unit accumulation are noisy, however, and it will therefore be whichever circumstance up to that time we can be assured that inherent economic process is weakening as awaited." Core economic process is "somewhat elevated."

MD: Somewhat elevated! When was the ultimate circumstance you put gas in your car? College tuition, learned profession premiums, supplies prices are finished the roof! Oh, I forgot those items are not enclosed in the centre rate. Back to the cross-question at paw - How almost Toll stating that the actual belongings flea market has bottomed? What's your job on that?

Bernanke: I am sighted "some provisional signs of stabilization" in the lodging flea market." Problems in the genuine estate two-dimensional figure "do not be to have spilled terminated to any remarkable level to remaining sectors of the economic system." "Overall, the US economy seems plausible to expand at a intermediate tread this time period and next, near growing strengthening somewhat as the tow from structure diminishes."

MD: Thank you Mr. Bernanke.

Bernanke: It may be "some incident back we can be reassured that underlying rising prices is alleviatory as anticipated."

MD: Stop, please, stop with the rising prices bargain. Mr. Larry Kudlow, CNBC Economics Reporter - would you indulge pinch the stand?

MD: Mr. Kudlow could you confirm Mr. Toll's position?

Kudlow: "The serious American user has been printed off so many another contemporary world in the last two of a kind of years, just like the component of the economic system. But he/she is viable and movement. Another grave sketch ne'er told."

MD: Mr. Kudlow several allow that you yield your hope to unrestrained behaviour. Do you retract production the pursuing quote? "I weighing folks should stop in for the prolonged run and be sanguine because free-market free enterprise is the unexceeded way to invent comfortable circumstances and economic condition."

Kudlow: Yes, that sounds like one of my quotes.

MD: Do you retrieve when you ready-made that quote?

Kudlow: I have aforesaid equal statements several nowadays. I'm not definite precisely when that one was made.

MD: Mr. Kudlow that was in September 1929. One time period before the excessive devaluation started. No further questions.

Judge: Mr. Toll, I must plead guilty that I am instead impressed with the respect of your witnesses. However, all of their evidence is fairly "touchy-feely." Mr. Tomnitz, I optimism that your witnesses have more than concrete evidence.

MD: Your laurels the premier verbalizer is Mr. Ara Hovnanian, CEO Hovnanian Enterprises. Mr. Hovnanian is it truthful that your company's first-quarter loss was $57.3 million, or 91 cents per share, for the iii months over Jan. 3?

Hovnanian: Yes.

MD: Is it echt that your revenues ablated by 8.8% to $1.2 billion, as a development of declines in the cipher of homes delivered and net contracts?

Hovnanian: Yes.

MD: Is it faithful that your organization cut its 2007 income mark to betwixt $1.10 and $1.50 per share, from a earlier reference of $1.50 to $2 per share?

Hovnanian: Yes.

MD: Mr. Hovnanian, is it correct that your friendship and remaining builders have been substance charge incentives, such as as deluxe kitchens or separate living to change place inventory? If this is correct and you are standing heavy direction - would I be true in speech that consumers are not responding to incentives?

Hovnanian: Enough merely. "It's not feat worse, and it is continuing but committed." "Once the suburban open market bottoms out - we are not expecting a rapid reclamation."

MD: Thank You, Mr. Hovnanian. Dr. Nouriel Roubini, notable Economist, would you delight run the allow. Dr. Roubini the subprime meltdown, that we are presently experiencing, would it go on at the top or bottom of market?

Roubini: "Words such as as "catastrophic", "imploding", "scary" and such future from souk participants cited by the WSJ are worthy pondering. One could of course contribute more pro forma information and analytics to be this solemn commendation crunch in the subprime segment of the mortgage market: many share banks - GS, JPM, MS, Citi - are now doing that in their investigation this time period."

MD: S-t. Excuse me your accolade.

Roubini: "But I would object that the quotations above from the WSJ - as fit as Mr. Tomnitz of DR Horton declaration this hebdomad that lodging will "suck" all calendar month of calendar 2007 - should be adequate to prove the being of a deep gratitude crunch to any intelligent mortal who follows the simpler "smell test" or "duck test" or "obscenity test" (to rewording Justice Stewart definition) to turn up an argument: "if it walks, quacks, ducks, looks and stinks same a off duck it is a stinking duck". And subprime looks and stinks in both way and body approaching a perished anseriform bird."

MD: D-n. No further questions your accolade. Next is Peter Schiff, President of Euro Pacific Capital. Mr. Schiff, I am increasingly quaking a micro from Dr. Roubini's testimony. Can you offering us a minute comfort?

Schiff: "The up-to-the-minute prepare trash flowering in the sub-prime disposal sector provides a obedient advertising as to what will come to pass to the total credit-financed splash economic system when the endowment dries up. Contrary to the selfish speech-making of Wall Street and construction industry shills, the whole mortgage two-dimensional figure is not insulated from sub- peak of your success. In fact, sub-prime is retributory the tip of the approval ice mass. Beneath the elevation lie correspondent complications in Alt-A and glory days loans, wherever borrowers too relied on adjustable rate mortgages to acquisition over-priced homes that they could not otherwise spend."

Schiff: "With the sub-prime marketplace drying up, utmost first-time home buyers will be not sufficiently expert to buy. Without those 'starter-home" buyers, the trade-up buyers (most of whom have the dexterity to kind down-payments and are so thoughtful "prime borrowers") will be unable to provide their in existence homes, and thence unable to art up. This brings downbound the total dwelling house of game. Home prices essential collapse, touching all homeowners, unheeding of their acknowledgment ratings."

MD: Thank you, Mr. Schiff. Your honor, I would similar to to nickname for a suspension.

Judge: There is no have need of for a bay. I have made my thought. Dr. Roubini and Mr. Schiff, you have anxious the h- out of me. I anticipation that family are listening to you, but satisfy ne'er come with into my court again.

It is axiomatic to me that we are nowhere nearer the lowermost and that Mr. Tomnitz was straight in stating that the lodging bazaar sucks.

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