GOIH Capital Markets: Commentary on the housing markets.
As we have reported here in earlier posts, we stated that until the housing market turned around the broad economy would not respond.
Apparently Treasury Sec. Paulson feels the same way by his comments below:
“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.”