Industry News

Treasury Secretary urges action on housing downturn

Paulson says correction is 'most significant current risk' to economy

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Treasury Secretary Henry M. Paulson on Tuesday called for aggressive action to work through the current housing correction that he says will continue to adversely impact the U.S. economy and struggling homeowners for some time. "The ongoing housing correction is not ending as quickly as it might have appeared late last year," Paulson said in remarks to students at the Georgetown Law Center this morning. Despite strong economic fundamentals in the current economy, the secretary views the housing downturn as "the most significant current risk to our economy. The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth," he said. In his most sobering view of the housing downturn to date, Paulson said the government and financial industry need to act to minimize the impact on the overall economy. He called on the financial industry to help as many borrowers as possible stay in their homes, but warned against relieving investors ...