Even though the Great Recession lingers on, some businesses are actually booming courtesy of the economic retraction. Recently, The Associated Press has reported that throughout the nation, permits and applications for home and building construction decreased in May showing a slow down for the industry at large. That statistic may be considered a larger indicator of the economic health of the nation. Despite the trend, some corporations are experiencing more activity and even larger profits as a whole.
Real Estate Bust a Boon for Habitat for Humanity
Habit for Humanity has rallied in defiance to the market conditions and has been ranked as one of the nation's top 10 homebuilders. Builder Magazine has included the non-for-profit organization to its annual ranking of the nation's top 2009 home construction teams. The nonprofit organization has been dedicated to providing housing options for everyone since launching in 1976.
To achieve their housing goals, the non-profit organization relies on volunteers and the future homeowners to invest time and "sweat equity" into refurbishing foreclosed properties to sell to low-income families. Plus, many of the materials used for the home construction come from donations. The homebuilders also act as mortgage lenders for the lucky families who benefit from their generosity. Habitat for Humanity sells the homes at cost and gives its buyers with a 0% interest rates to finance the purchase.
Builder Magazine builds their annual list based on sales and closings information provided by builders across the nation. Habitat of Humanity reported a decrease of 3 percent in 2009 (5,294) compared to their 2008 (5,459) statistics. However, compared to other construction companies that drop was nominal and helped Habitat for Humanity earn the number eight spot on the list. That is up from their 11th place ranking in 2008.
Goldman Sachs
Goldman Sachs' role in the mortgage meltdown is currently under scrutiny by the Senate Permanent Subcommittee on Investigations. The action is being conducted in response to a focus of a fraud suit launched by the Securities and Exchange Commission. The agency has been working on building a case against the Wall Street giant as it has been reported that the investment firm has made huge profits based on the dismal insight they had regarding the toxic mortgage products they sold.
According to the Los Angeles Times, Senate investigators have said that there are documents that “... show how Goldman used its gold-plated reputation on Wall Street to sell toxic mortgage-related securities to investors then reversed course and bet against the overheated market it helped create." According to the law suit, this move coupled with additional creative financing, allowed Goldman to generate huge fees from the subprime mortgage industry and spread the scourge and help create a situation that may take years to fully recover.
Documents for the case include an email sent by David A. Viniar, Goldman’s chief financial officer, on July 25, 2007. The message included information estimating that the organization had made a $51 million profit courtesy of the housing securities created from bundles of subprime mortgages.
McDonald's Sales Up
As more people have less cash to spend, affordable food is becoming a luxury. McDonald's attributes the 7 percent July increase (McDonald's largest gain in a year) to the assortment of bargain priced smoothies and frappes they added to the menu. Additionally, their value meal sales also helped their bottom line. Comfort eating has been a way for Americans to relieve stress and the fast food chain has plenty of affordable options catering to people tapping into the pacifier.
Consumers with the least money to spare need to get the most bang out of their food budget buck. The nation is currently plagued by unemployment numbers nearing the double digit, indicating that people have less money to spend on dining out. However, thanks to the low price point of the world's largest hamburger chain, consumers struggling to pay their mortgages, but are able to buy their food.
