And yet one more grim outlook on the housing market! According to Treasury/Secretary, Henry Paulson, he stated, "The unfolding housing crisis presents a significant risk to the economy," in a speech delivered at Georgetown University’s law school this morning. What they are saying is that: Housing is getting worse and this is a crisis in slow motion!
Paulson continued, “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. The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth.”
He added, "The problem is not just limited to the sub prime market but the prime market is increasing as well." Paulson continues to say that the housing is likely to further decline and become a drag.
Paulson announced:
*No need to bail out lenders or property speculators.
*Keep homeowners in their homes.
*Government must balance the need against the threat that government action can encourage investors to make risky decisions in the future.
*The same ongoing correction advice: overhaul laws and regulations and stop abusive practices.
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