HOBBorg

Cramer's Mad Money - Social Insecurity (12/17/08)

Is this a cruel joke?
Bernanke’s statement that the government would aid the economy”. ..to breathe new life into housing stocks of KB Homes, Lennar… Surely Bernanke saw the October 18, 2008 New York Times: “Building Flawed American Dreams” and BusinessWeek AUGUST 13, 200, “Bonfire of the Builders” and the building industry’s involvement in the creation of massive Toxic Mortgages.

Please… Give us a break. A bail out for who?

The same KB Home that paid HUD $3.2 million for its mortgage affiliate (KB Mortgage) loan “irregularities”? KB Home whose other affiliate is Countrywide Mortgage? KB Home that was sued by the FTC in 1979 and has continued violations of the original FTC federal consent decree. The same KB Home with ties to AIG that got a huge government bailout and then got caught while on junkets to the luxury St. Regis Resort in Monarch Beach, California, and again when top executives secretly gathered at the Phoenix luxury resort. The same KB that built the infamous substandard $22M federally funded Mirasol homes with no back doors or windows that made residents sick and underwent $6M of wasted repairs.

Then there is Lennar… whose construction defects and development of contaminated and bombing range land development is rivaled by none other than KB Home…

Have Wall Street and its financial advisors and Washington gone mad? This is the very industry that successfully conjured up the whole insane scheme to target a market of people who didn’t qualify to buy new homes.

Don’t be surprised if you hear that the “Ponzi” schemer Bernard Madoff and the Illinois Governor Bernard Blagojevich are given community service sentences for their crimes and become the administrative czars for all the federal bailouts.