Fla. builders: Bank practices driving them to ruin: Financial News - Yahoo! Finance: "TALLAHASSEE, Fla. (AP) -- Home builders are being driven to ruin by 'extreme' banking practices adopted in response to the nation's financial meltdown, including calling in good loans, Florida builders said Monday.
Lenders are also hoarding federal bailout money while dissolving lines of credit and many times are simply eliminating construction financing, the builders say."
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This may all be true, but is it not also true that we are suffering from an oversupply of housing relative to the demand? If banks give construction financing to builders, new homes will go on the market and compete with the large supply of foreclosed homes that are being unloaded by those very banks. At least, that's the way it looks to me.
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