Portal
Home
Calendar
Gallery
FAQ
Search
Register
Log inPaulson Upbeat on Economy and Markets, but Not Housing
Paulson Upbeat on Economy and Markets, but Not Housing
by Outspoken on Sat May 17, 2008 7:33 pm
Paulson Upbeat on Economy and Markets, but Not Housing
Treasury Secretary Expects Growth to Rebound in 2008
By Lori Montgomery
Washington Post Staff Writer
Treasury Secretary Henry M. Paulson Jr. said yesterday that financial markets have stabilized since March, when the collapse of investment house Bear Stearns roiled Wall Street, and said he expects economic growth to rebound by the end of the year.
A severe housing slump remains "the biggest risk to our economy," Paulson said, adding that he was "very encouraged" to see "bipartisan progress" in Congress on a comprehensive plan to address the downturn.
"The markets are considerably calmer now than they were in March," Paulson said to business leaders gathered at a downtown hotel for a forum sponsored by The Washington Post. "In my judgment, we are closer to the end of the market turmoil than the beginning."
Paulson said the housing sector remains a major worry, as prices continue their two-year decline. About 1.5 million homeowners fell into foreclosure last year, and analysts predict that as many as 3 million more could join them over the next two years. Meanwhile, housing prices have plunged more than 10 percent.
Paulson noted the impact of sagging home prices and soaring energy costs, referring to "difficulties" in an economy that he said remains "structurally sound."
Asked by an audience member whether $100 billion in economic stimulus checks that were mailed this month to 130 million households would wind up paying for more expensive gasoline instead of stimulating the economy, Paulson acknowledged that "we've got some increasing headwinds."
But he insisted that the stimulus package approved by Congress and signed by President Bush will aid in the nation's economic recovery, creating 500,000 jobs.
"I don't mean to sound Pollyannaish," he said, but "I do believe our economy will be growing at a faster pace at the end of the year than it is now."
The Treasury secretary praised and defended the Bush administration's decision to focus on saving homeowners at risk of foreclosure by encouraging bankers to modify unaffordable home loans, particularly those with payments that escalate rapidly a few months or years after the papers are signed.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/16/AR2008051601771.html?wpisrc=newsletter
Treasury Secretary Expects Growth to Rebound in 2008
By Lori Montgomery
Washington Post Staff Writer
Treasury Secretary Henry M. Paulson Jr. said yesterday that financial markets have stabilized since March, when the collapse of investment house Bear Stearns roiled Wall Street, and said he expects economic growth to rebound by the end of the year.
A severe housing slump remains "the biggest risk to our economy," Paulson said, adding that he was "very encouraged" to see "bipartisan progress" in Congress on a comprehensive plan to address the downturn.
"The markets are considerably calmer now than they were in March," Paulson said to business leaders gathered at a downtown hotel for a forum sponsored by The Washington Post. "In my judgment, we are closer to the end of the market turmoil than the beginning."
Paulson said the housing sector remains a major worry, as prices continue their two-year decline. About 1.5 million homeowners fell into foreclosure last year, and analysts predict that as many as 3 million more could join them over the next two years. Meanwhile, housing prices have plunged more than 10 percent.
Paulson noted the impact of sagging home prices and soaring energy costs, referring to "difficulties" in an economy that he said remains "structurally sound."
Asked by an audience member whether $100 billion in economic stimulus checks that were mailed this month to 130 million households would wind up paying for more expensive gasoline instead of stimulating the economy, Paulson acknowledged that "we've got some increasing headwinds."
But he insisted that the stimulus package approved by Congress and signed by President Bush will aid in the nation's economic recovery, creating 500,000 jobs.
"I don't mean to sound Pollyannaish," he said, but "I do believe our economy will be growing at a faster pace at the end of the year than it is now."
The Treasury secretary praised and defended the Bush administration's decision to focus on saving homeowners at risk of foreclosure by encouraging bankers to modify unaffordable home loans, particularly those with payments that escalate rapidly a few months or years after the papers are signed.
http://www.washingtonpost.com/wp-dyn/content/article/2008/05/16/AR2008051601771.html?wpisrc=newsletter
"Music is a moral law. It gives soul to the universe, wings to the mind, flight to the imagination, and charm and gaiety to life and to everything."
Plato (427-347 BC)
Plato (427-347 BC)
