Bush claims poor economy on too many houses. (Iran, Iraq, Afghanistan)

[TnHilltopper]

Yes, you heard right, Bush claims that our war and occupation of Iraq isn't a reason, and in fact the war in Iraq is creating jobs and bringing prosperity and that the cause of our falter economy is that we build too many houses.

Think Progress » Bush Dismisses Iraq Recession: The War Has ‘Nothing To Do With The Economy’

CURRY: You don’t agree with that? It has nothing do with the economy, the war — spending on the war?

BUSH: I don’t think so. I think actually the spending in the war might help with jobs…because we’re buying equipment, and people are working. I think this economy is down because we built too many houses and the economy’s adjusting.

This administration is getting more Orwellian each day and soon we should expect the billboards and commercials, "War is peace, hate is love, you are more rich when you are poor".... bizzaro world here we come.

[burdell]

Of course! After all, nobody's buying equipment, materials, or labor to build houses, building couldn't possibly help the economy. Just what do these damn Americans expect, a place to live with indoor plumbing?

Even as I write I'm confident in our leadership, confident that right now good ol' Dubya is planning the invasions of France, Switzerland, and Canada that will further boost our economy and lead us to even higher stature in the eyes of the world.

[GregW]

Perpetual War

Not really, he is planning on the Perpetual War to continue to provide government contracts for his friends. Isn't that what Presidents are supposed to do? Provide for their friends.

[MamaBee]

No no Greg, you've got it wrong. They provide for their friends AND their party.

"War is peace." This happened the second they said "we need to fight them over there so we don't fight them over here". As if regiments or divisions of Al Queda troops were on their way...

[Frank_Carbonni]

Originally Posted by MamaBee

"War is peace." This happened the second they said "we need to fight them over there so we don't fight them over here". As if regiments or divisions of Al Queda troops were on their way...

No, but it's not like Al Queda and other terrorist groups aren't headquartered in Afghanistan and used the country to train those who eventually launched 9/11.

[cpg35223]

Well, hang on. Builders waaaaay overbuilt inventory at the height of the building boom. Seriously. As in I would go walk into a meeting with a builder, talk to him about his subdivision, and ask, "Well, where are all the buyers going to come from?" He would get a blank look and not really be able to say.

I remember two years ago talking to a colleague about it and comparing it to the Internet boom and bust that happened in the late 90s. At that time, everybody was putting up a web site without the foggiest idea about where the money would come from. More than once, I walked into a meeting for a web site, filled with smart people, who had put together a snazzy web site, and asked, "Okay, how are you guys going to make money with this?" You would have thought I had whipped it out and urinated on the conference room table.

It's the same thing here. All those big empty houses you see out there required thousands and thousands of investment capital and loans to build. Loans to pay for the labor, the concrete, the drywall, the electrical work, the appliances, the wood and the brick. And yet, a huge number of those houses were built without an absorption study or a marketing plan. These meatheads just did some quick numbers crunching and started putting up houses as fast as they could swing their hammers. And a lot of the banks just handed big bags of cash, without doing their due diligence, either. After all, bankers don't know a lot about marketing either.

So, in the past two years, I've watched three different builders go belly up. None of them owed me money, thank God. Compound that by the millions of unsold houses across the country, and you have the Dutch Tulip Bulb Craze all over again, except this time with bricks and mortar.

And that's actually the positive in all this. Unlike defunct internet companies or tulip bulbs, once this all shakes out, there remains property with clear and absolute value. All this excess inventory will eventually be sold. It just won't be the original builders or lenders who profit.


Oh, the other thing to take in account. It's not just builders and bankers who suffer. Transportation, raw materials, HVAC, and other industries take it on the chin, too. So if you work for a trucking firm, a sawmill, a brick manufacturer, or an air conditioning manufacturer, then you've got problems as well.

[burdell]

Originally Posted by Frank_Carbonni

No, but it's not like Al Queda and other terrorist groups aren't headquartered in Afghanistan and used the country to train those who eventually launched 9/11.

But it is like al Qaeda (the perpetrators of 9/11) weren't headquartered in Iraq and didn't use the country to train. As we know, they may've trained elsewhere in how to live in the US but most of their training was right here in America.

[burdell]

Originally Posted by cpg35223

Oh, the other thing to take in account. It's not just builders and bankers who suffer. Transportation, raw materials, HVAC, and other industries take it on the chin, too. So if you work for a trucking firm, a sawmill, a brick manufacturer, or an air conditioning manufacturer, then you've got problems as well.

So the reality is it's 'a lack of planning' that's the real cuprit. A phrase that certainly wouldn't be out of place when used in describing the problems caused by the Iraq war either.

[Marodi]

Originally Posted by burdell

But it is like al Qaeda (the perpetrators of 9/11) weren't headquartered in Iraq and didn't use the country to train. As we know, they may've trained elsewhere in how to live in the US but most of their training was right here in America.

Exactly.

In fact, Saddam wasn't allowing any fundamental muslims to make bases in his country.

Reasons we invaded saddam:
1) Fight terrorism - There wasn't any
2) He's a threat to regional stability - Iran wasnt?
3) He had WMD's - Proven false, and is common knowledge that Iran has atleast some.
4) He was a cruel dictator that killed his own people - So? We've instituted murderous dictators too.
5) He was attempting to get nukes - So were/are Iran, Sudan (I think this is the one, was one of the african islamic countries), and North Korea

Any I left off?

There wasn't any logic to go into this war, none. Other than profiteering of it.

[GregW]

So when are the prices going to break to pre-boom levels. You know prices that a family making 50k per year can afford? Will the prices sink enough for speculators to buy and hold for a few years?