Did anybody expect anything less? In these circumstances (a rough, unstable economy), incentives need to stay in place – ideally – until the natural economy picks up. However, to be safe, the incentives most likely should stay in place until it’s obvious that the economy is rocking and rolling again.
WASHINGTON (Reuters) – Housing starts fell to a five-month low in May but industrial output rose, evidence of an uneven recovery that has kept inflation at a minimum.
As the government’s tax incentives for homebuyers expired, new home building dropped 10 percent to a seasonally adjusted annual rate of 593,000 units, the lowest level since December, the Commerce Department said on Wednesday.
In a sign that the credit markets are still seized up, General Growth files for bankruptcy protection.
General Growth Properties Inc, the second-largest U.S. mall owner, declared bankruptcy on Thursday in the biggest real estate failure in U.S. history.
They are the owners of over 200 malls. They filed for restructuring (Chapter 11), so hopefully their creditors will renegotiate with them. Said General Growth Chief Executive Adam Metz:
While we have worked tirelessly in the past several months to address our maturing debts, the collapse of the credit markets has made it impossible for us to refinance maturing debt outside of Chapter 11.
Or else my wife will have to start shopping at – here it comes! – strip malls!