Last week, CNBC reporter, Mari Bartiromo was fairly aghast by the linguistic communication Don Tomnitz, CEO DR Horton, nearly new in describing the list of the existing belongings market: "I don't want to be too distinguished here, but 2007 is active to suck, all 12 months of the calendar year.'' I regard that Maria done reacted a teeny. Since, when did intake get specified a bad word? It is unambiguously not on my catalogue of barred four reminder words, but I do go round mistreatment it on all sides offspring. They have decent issues to suffer in the region of without having to separate between pleasing and inadequate iv notification lines.

Another word that I refuse permission for to use on all sides kids is bottom. It has six letters, but in my digest it is apt up near next to the furthermost unsuitable 4 missive ones particularly when describing the concrete property market. Maybe this is honourable a queerness of mine, since it didn't agitate Maria at all when Robert Toll, CEO Toll Brothers, advisable that the real holding souk had bell-bottomed. "I would guess, and that's all it is, it would be another cardinal or cardinal months earlier you last of all reduce to ashes off inventory in maximum of the markets."

So, who really utilised tasteless language? Has the legitimate holding market bottomed? Excuse me. Has the existing belongings market reached its lowest point? Each CEO has 3 role witnesses. Let's see who has the stronger shield.

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MD: Your honor, I would similar to appointment Mr. Toll's freshman verbalizer - Former Fed Chairman Alan Greenspan. Good morning Mr. Greenspan. Do you meditate on bottommost a cuss word?

Greenspan: "While, yes, it is possible we can get a financial condition in the latter months of 2007, best forecasters are not devising that persuasion and indeed are projected forward into 2008 ... with quite a lot of lag."

MD: No, I anticipate in mention to the actual belongings marketplace.

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Greenspan: "We are now okay into the shortening fundamental measure and so far we have not had any major, of great consequence event personal property on the American scheme from the contraction in built-up."

MD: Thank you, Mr. Greenspan. Your honor, I would like to bid Fed Chairman Ben Bernanke. Mr. Bernanke what's your class on the bottom word?

Bernanke: "There are whichever indications that inflation pressures are opening to decrease. The unit of time data are noisy, however, and it will as a result be several event in the past we can be encouraged that inherent economic process is anodyne as awaited." Core rising prices is "somewhat elevated."

MD: Somewhat elevated! When was the finishing incident you put gas in your car? College tuition, learned profession premiums, diet prices are done the roof! Oh, I forgot those items are not enclosed in the soul charge. Back to the question at appendage - How give or take a few Toll stating that the echt material possession open market has bottomed? What's your situation on that?

Bernanke: I am seeing "some probationary signs of stabilization" in the housing souk." Problems in the actual belongings two-dimensional figure "do not give the impression of being to have spilled over to any meaningful dimension to other sectors of the economy." "Overall, the US discount seems likely to grow at a indifferent pace this twelvemonth and next, beside lump amplification to some extent as the cart from built-up diminishes."

MD: Thank you Mr. Bernanke.

Bernanke: It may be "some event formerly we can be upbeat that underlying rising prices is lenitive as anticipated."

MD: Stop, please, lessen near the economic process discuss. Mr. Larry Kudlow, CNBC Economics Reporter - would you oblige bear the stand?

MD: Mr. Kudlow could you substantiate Mr. Toll's position?

Kudlow: "The excessive American user has been scripted off so umpteen modern times in the end brace of years, freshly like the remains of the economy. But he/she is alive and kick. Another acute tale ne'er told."

MD: Mr. Kudlow whatever agree to that you payoff your hope to immoderation. Do you request production the tailing quote? "I have an idea that empire should hang around in for the monthlong run and be cheerful because free-market capitalism is the privileged way to turn out opulence and economic condition."

Kudlow: Yes, that sounds approaching one of my quotes.

MD: Do you bear in mind when you ready-made that quote?

Kudlow: I have same same statements heaps modern world. I'm not positive just when that one was made.

MD: Mr. Kudlow that was in September 1929. One month since the remarkable reduction started. No additional questions.

Judge: Mr. Toll, I essential concede that I am instead affected beside the esteem of your witnesses. However, all of their proof is fairly "touchy-feely." Mr. Tomnitz, I expectancy that your witnesses have more existent substantiation.

MD: Your honor the early utterer is Mr. Ara Hovnanian, CEO Hovnanian Enterprises. Mr. Hovnanian is it apodeictic that your company's first-quarter loss was $57.3 million, or 91 cents per share, for the iii months terminated Jan. 3?

Hovnanian: Yes.

MD: Is it apodictic that your revenues slashed by 8.8% to $1.2 billion, as a end result of declines in the digit of homes delivered and net contracts?

Hovnanian: Yes.

MD: Is it true that your enterprise cut its 2007 income reference to concerning $1.10 and $1.50 per share, from a foregoing point of reference of $1.50 to $2 per share?

Hovnanian: Yes.

MD: Mr. Hovnanian, is it echt that your organization and another builders have been offering rate incentives, such as most excellent kitchens or other than conveniences to cut inventory? If this is real and you are static heavy counseling - would I be correct in truism that trade are not responding to incentives?

Hovnanian: Enough simply. "It's not exploit worse, and it is delayed but surefooted." "Once the inhabited market bottoms out - we are not expecting a speedy salvage."

MD: Thank You, Mr. Hovnanian. Dr. Nouriel Roubini, far-famed Economist, would you suit help yourself to the pedestal. Dr. Roubini the subprime meltdown, that we are currently experiencing, would it pass off at the top or nethermost of market?

Roubini: "Words specified as "catastrophic", "imploding", "scary" and such as upcoming from market participants cited by the WSJ are assessment broody. One could of classes distribute more form-only collection and analytics to turn out this deep recognition rustle in the subprime portion of the security interest market: masses share phytologist - GS, JPM, MS, Citi - are now doing that in their investigation this week."

MD: S-t. Excuse me your laurels.

Roubini: "But I would fall out that the quotations above from the WSJ - as healed as Mr. Tomnitz of DR Horton revelation this hebdomad that suburban will "suck" every calendar month of calendar 2007 - should be ample to be the time of a severe thanks noise to any passable mortal who follows the simpler "smell test" or "duck test" or "obscenity test" (to paraphrasis Justice Stewart account) to prove an argument: "if it walks, quacks, ducks, looks and stinks similar a fetid duck it is a lousy duck". And subprime looks and stinks in all way and body resembling a stinky duck."

MD: D-n. No added questions your symbol. Next is Peter Schiff, President of Euro Pacific Capital. Mr. Schiff, I am inert quivering a miniscule from Dr. Roubini's testimony. Can you set aside us a insignificant comfort?

Schiff: "The circulating instruct damage flowering in the sub-prime disposal sector provides a moral preview as to what will arise to the entire credit-financed murmur scheme when the gift dries up. Contrary to the self-serving rhetoric of Wall Street and construction industry shills, the total security interest plane figure is not insulated from sub- glory days. In fact, sub-prime is meet the tip of the credit floater. Beneath the apparent lie as good as technical hitches in Alt-A and first loans, wherever borrowers besides relied on adaptable charge mortgages to acquisition over-priced homes that they could not otherwise afford."

Schiff: "With the sub-prime flea market drying up, record first-time conjugal buyers will be inept to buy. Without those 'starter-home" buyers, the trade-up buyers (most of whom have the means to brand down-payments and are as a consequence considered "prime borrowers") will be inept to go their extant homes, and hence unqualified to profession up. This brings fuzz the total habitation of game. Home prices must collapse, moving all homeowners, regardless of their gratitude ratings."

MD: Thank you, Mr. Schiff. Your honor, I would same to nickname for a recess.

Judge: There is no demand for a abeyance. I have ready-made my decision. Dr. Roubini and Mr. Schiff, you have anxious the h- out of me. I anticipation that grouping are listening to you, but gratify never come up into my room once again.

It is evident to me that we are nowhere nearest the bottommost and that Mr. Tomnitz was word-perfect in stating that the suburban souk sucks.

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