homebuilder D.R. Horton had their conference call with investors. The homebuilder confirmed what free-market economists had said all along: the tax credit was a failure and we would be better off without another such gimmick.
28% of "buyers" canceled their orders. D.R. Horton's CEO is not surprised by these horrid numbers and expresses relief that the distortion was not actually worse. "I was surprised it only increased to 28%."
Looking forward, "The next 12 to 24 months will be challenging in the homebuilding industry."
As unemployment and lagging income catch up with consumers and businesses, we may see more defaults and bankruptcies. Personal bankruptcies rose again in July, to the highest rate since 2005.