Treasury Sec'y Paulson: Housing slump correction "not ending as quickly as it had appeared it would"

[Amerigo Vespucci]

Paulson: Tough response needed for housing
Treasury Secretary says U.S. housing crisis is ‘significant’ economic risk



http://www.msnbc.msn.com/id/21322471/

Updated: 8:36 a.m. PT Oct 16, 2007

WASHINGTON - Treasury Secretary Henry Paulson called Tuesday for an aggressive response to deal with an unfolding housing crisis that he said presents a significant risk to the economy. In the administration’s most detailed reaction to the steepest housing slump in 16 years, Paulson said that government and the financial industry should provide immediate help for homeowners trying to refinance current mortgages before they reset at much higher rates.

He also called for an overhaul of laws and regulations governing mortgage lending to halt abusive practices that contributed to the current crisis.

“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,” Paulson said in a speech delivered at Georgetown University’s law school. “The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth.”

In his most somber assessment of the crisis to date, Paulson said that the housing correction is “not ending as quickly” as it had appeared it would and that “it now looks like it will continue to adversely impact our economy, our capital markets and many homeowners for some time yet.”

[tanyev]

1. Surely no one could have anticipated that.

[OrangeCountyDemocrat]

2. GOD DAMN PIECE OF SHIT!!!!

What a bunch of FUCKING MORONS we have running this country.

PILES OF SHIT, each and every one of them.

HE'S A FUCKING LIAR.

Jesus Christ, we're Fucked.

[Mike03]

3. How Disingenuous

This crisis is the result of lax lending policies, cheap liquidity and greed-mania that has been nearly seven years in the making. What goes up must come down, and usually at the same rate of velocity.

It will be years before we recover from this unmitigated mess--not just housing but the twin deficits and crashing dollar.

[sdfernando]

4. Dear Sec. Paulson:

"Paulson said that the housing correction is “not ending as quickly” as it had appeared it would "....

I could have told you that YEARS ago. Me with just my common sense and my little old Associates! Seems I'm a bit more qualified than you...Can I have your job?

[Yael]

5. Not ending as quickly as they thought it would???

For the love of all that is holy!?!? Do these people pick up a paper? Ever?

We haven't even started on the ARM resets. Haven't even seen the tip of the iceberg. They just STARTED in August and the current cycle is through 2010.

"Ending as quickly as we thought" my ass. They allowed the predators to set up a global-scale Enron-style ponzi scheme and now they want us to believe that the Rule of 32 never occurred to them?

PLEASE!

Sell it on Fox. That is about the only audience you will get to buy this one.

</rant>

[Mike03]

6. The ARM resets

Fantastic point--that is definitely going to traumatic for many new homeowners.