'Housing Decline Is Still Unfolding,' Treasury Chief Says

'Housing Decline Is Still Unfolding,' Treasury Chief Says

www.nytimes.com

WASHINGTON, Oct. 16 — Treasury Secretary Henry M. Paulson Jr. offered a pessimistic view of the country’s housing slump today as he called for help for hard-pressed homeowners and new mortgage regulations. But he urged Congress not to overreact by passing excessively harsh measures.

“Let me be clear: Despite strong economic fundamentals, the housing decline is still unfolding, and I view it as the most significant current risk to our economy,” Mr. Paulson said in a speech at a Georgetown University law forum. “The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth.”

(visit the link for the full news article)

Article goes on to say the dept. isn't "bailing out lenders" and a "gloomy assessment" of the mortgage situation from the new Fed Reserve Chairman. . . . that "fiscal day of reckoning" could be sooner then later. A lot of other factors on the downturn in this arena.

www.nytimes.com
(visit the link for the full news article)

By not bailing out the lenders he means not bailing out the banks. That means that it will be the borrowers who will lose there home or land ect. I don't want a bail out either. Its the banks that created any mess we might be in by lending money to people who might not be able to pay it back. So if anything happens it should be the banks who take the loss.

reply to post by RedGolem


Problem is, you've got banks hiding their assets and losses in off sheet accounts like structured investment vehicles. We're talking hundreds of billions of dollars here.

Yes so they had there assets best they can. And then again that is all the more reason the banks should take the loss if all of there loans go belly up.