Paulson Speaks On Economy: Down Sharply, Stimulus Package to Impact
In his speech in Washington at the Council of Institutional Investors, Treasury Secretary Henry Paulson stated today that the economy has "turned down sharply" and is at risk of further weakening. However, he said that the fiscal stimulus checks that will go out to Americans soon will have a real impact on the economy.
Paulson also said that a commitment by housing finance companies Fannie Mae and Freddie Mac to raise additional capital was critical in efforts to help the ailing mortgage market.
"That's very, very important, " Paulson told the Council of Institutional Investors. "What they do here is going to be more important than a lot of things that are being considered by Congress right now. It's very important that they continue to play an active role."
Paulson also called it a "disgrace" that there hasn't been any legislation to reform oversight of Fannie and Freddie.
And he said financial institutions shouldn't look to government to raise capital but should raise it on their own.
Published on April 10, 2008
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