“Although the U.S. Commerce Department in a report issued today showed housing starts rose 15% last month, we are certainly far from a recovery in the nation’s severely depressed housing market. The report references continuing foreclosures and the oversupply of single family homes, many of which are occupied by owners who owe more than their property is worth today. Until we turn the overall economy around, demand will not be there for absorption of the oversupply and for new housing starts, which would also mean new construction jobs. Demand today is for apartments, according to today’s report, but a slide in overall building permits does not bode well for a near-term recovery or for a significant boost to the economy.
We are in a negative cycle that will only be helped with capital to form new businesses and create jobs in the 21st Century U.S. economy. Our focus at The Broadsmoore Group is on providing growth capital for businesses to fill the large gap left by the commercial banking sector which has seemingly abandoned a long-term view for short-term fee generation. Short-term banking profits will not build the economy in a meaningful way, and will not dig us out of the housing depression that still exists in spite of today’s modest rise in housing starts,” said AJ Discala, Chief Executive Officer of The Broadsmoore Group.
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