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KB Home founder Eli Broad on the outlook for housing and its impact on the economy’s recovery.
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And -- our idol is a red letter day for the market no doubt -- today's.
History making run up in the stock market as a backdrop.
Of a relatively weak economy but bulls argue that it generally positive housing market for example could provide the economic support for continuing bull market.
If anyone knows housing it is our next guest he is a legend in the housing industry Eli Broad as the -- Katie -- Which helped turn the family a baby boomers into a generation of homeowners.
As a philanthropist he also helped reshape and rebuild Los Angeles and -- one of the world's leading cultural centers.
He's also founder of the broad foundations and author most recently of the art of being unreasonable joining us now.
In a Fox Business exclusive Eli Broad wonderful to see again thank you for coming in.
Good to be -- you'll thank you so much well unreasonable as that is a part of your book.
The art of being unresolved -- if you think the market.
Is being unreasonable right now we still have a very slow growth rate of under 2% we have very high unemployment of almost 8%.
Is the market being a little unreasonable when you consider the economic realities.
You know it's been quite a ride but I think the market has a wish to go yet how were hurt by -- -- -- units in the -- victory -- -- and our I think -- -- changes -- I have agreed to effect on the economy it's got a great multiplier effect.
Between housing auto sales and don't some of some tightening in employment.
I think we've got a ways to go home.
Do you have any doubt that housing is back I've been a lot of people say well first we had some strong numbers coming in in -- sovereign default but then it fell back again in December is -- -- now is -- back for the long term.
I am from the long term I think it's back it's not going to be the way it was prior -- nineteen.
-- 2008.
The psychology exchange but I think you psychology is improving and people -- Our look victim market is bottomed out and are looking to buy homes where there -- your new home ensure just and homes.
Well you talk about psychology of home buying -- back when you were making a big with KB homes.
You were catering to a group of people service people coming back from the war that the baby boomer generation.
Who believes in home -- a lot of people say young folks our more cynical.
They may rather rent than buy is that part of psychology that's changing.
You're right they have become more cynical as a result of what happened last for five years.
When we started a whole building your was very shocked or if you could build a Holman a monthly payments were less severe rent out a two bedroom off.
Our garden apartment you -- by the home I think we're back to that point.
Now the Fed of course has gotten very much involved we also have the government housing programs it.
Did or didn't work depending on your perspective but the Fed is buying up massively these these mortgage bass -- backed instruments.
I'm wondering what would happen if the feds -- -- that stop third the housing market cold.
Important stop it cold it might slow it down from -- from the you know shift his son.
But it wouldn't stop -- cold.
Iraq I gotta I gotta talk about what you mean to the city of Los Angeles because if you look at housing you have to look at Urban Renewal.
Some cities like Detroit unfortunately are going down other cities like Los senators are going up partly because the work that folks like you were doing -- you you think of the Disney.
-- you think if the the all the museums that you've been involved in effect you've got one museum is an open and you're so.
With your name -- -- it's just called Boe broad.
How much has Los Angeles come -- how much is its economic.
Sort of renewal affecting the economy of Los Angeles.
Or it's a big booster to go Los Angeles economy what's happened -- ten years is incredible.
Between -- -- alive which is -- can be mentioned sports and entertainment district and -- to help you witches are cultural and civic district.
You've got.
Twice the number of people living downtown -- we have almost ten years ago it's growing very rapidly.
So.
Do you see what -- -- doing in Los Angeles is being replicated anywhere else we have our our entrepreneurs in New York City I know -- you spent some time here growing up.
Who were also -- to to effect changes here is that is that really causing a renewal of Los Angeles and could -- work in other cities as well.
Or can work -- a lot of cities -- what's happening Los Angeles could be replicated elsewhere and I -- off.
Five Detroit fights where to turn round.
Eli Broad -- I never found to be unreasonable all of that is the title of his book we will come back -- -- have you back and talk about what you mean it.
By unreasonable good to see is sir thank you for coming in appreciate it.
Thank you.
