Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Taxpayers to Foot Homebuilders' Losses?


Tax breaks for bankers, builders part of proposed economic stimulus.

As people rubberneck the Bear Stearns (BSC) demise, one of the most questionable legislative moves in the modern era is getting rammed down taxpayers' throats without nary a peep by the mass media.

I'm talking about the proposed loss carryback provision, which would allow homebuilders to recover taxes paid during the bubble years by offsetting the income with the losses they're incurring now.

In essence, taxpayers will give back to the Robert Tolls (Toll Bros. (TOL)) and Ara Hovnanians (Hovnanian (HOV)) of the world millions of dollars to prop up their closely held companies, i.e. companies in which they have majority interest and/or control, whose stocks these individuals had the magic foresight to dump by the millions of shares right before the whole Ponzi scheme collapsed.

If ever there was an action that should undermine investors' confidence in the U.S. market system and reinforce the view that the government exists to grease the palms of those who pay their way into influencing the government, this is it.

I haven't had a position in homies in quite a while, so I could care less whether they go up or down. Furthermore, taxpayers' money is likely to do nothing to the business prospects of those companies, except permitting them to show taxpayers' involuntary charity as income on their statements, which probably will trigger more option grants to the insiders.

Alas, the involvement I do have in the homies is one with clearly defined downside only: that of a taxpayer watching money being transferred from my pocket to the pockets of those whose dog-and-pony hype shows were part and parcel of the disaster we're facing right now.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos