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On some bad trades.
Well speaking of bad investments let's talk about the housing market we did get some good news out this morning builders started working on more single -- -- -- comes in -- And the permit ads that is an indicator of future building activity came in at the highest level.
In almost four years but to make of that Ed -- president -- At the American Enterprise Institute joining me now it's great news if the demand is there ahead.
But Neil wanna build -- and I wore -- I wanna ask you about the kind of this supply that's out there but also the looming supply that might come from for closures should we worry about that more.
I think that's a bigger problem I -- the builders are.
Trying to meet any demand that's out there may be getting a little -- ahead of the curve but -- certainly these numbers are still very anemic in terms of what normal might be -- went back at ten or eleven years.
But the bigger problem is the looming foreclosures.
And also that we've we've.
Kicked a lot of cans down the road -- -- that's an expression been used a lot.
We've got a lot of modifications that continue to go bad.
It take six months twelve months through gonna get back into the delinquency hopper.
FHA runs a -- a lot of that problem.
And so there's there is a lot -- Pending.
Is sitting -- sitting there that will keep pressure just today -- Fannie Mae said the recovery they've pushed back another year to 2013.
You know it's always been just around the corner.
I think you know we're getting near the bottom but it doesn't seem like we're actually getting into -- recovery.
What you why aren't these record low mortgage rates helping more when you have the government as the primary.
Mortgage lender or at least.
Backing are touching the vast majority of mortgages that are made in this country why is it.
You know what why are we getting more firm money says they -- yet the government is take -- -- Fannie Mae and Freddie Mac and we control the Federal Housing Administration.
Why isn't there more -- juice in housing from that.
But I think two reasons one it's.
Housing doesn't create.
The jobs that drive demand jobs create the jobs jobs create the demand for housing.
And we're not getting the job's the job growth has been anemic.
-- -- -- 100000 a month.
Is not the kind of recovery that's normal particularly after.
The Irish that a deep recession that we had -- is not a normal.
Recovery second -- What a lot of what's been done has been refinanced and that's basically.
Been I -- what I call a week form of stimulus because -- taking money from one pocket.
Savers and investors and moving it over to another pocket.
The debtors and therefore you don't get a lot of boost from that the the administration touts.
Savings on the one side that they never total up the cost on the other and so it's not quite the stimulus it's -- -- stimulus.
That it was great to see you as always thanks for being here -- -- so.
Always a pleasure thanks taken -- well.