Oct. 30 (Bloomberg) -- U.S. Treasury Secretary Henry Paulson said that the slump in the housing market in the world's biggest economy wasn't over yet.
``We haven't hit the bottom yet in housing,'' Paulson said today at a conference in New Delhi.
The fallout from the U.S. subprime market has cost the world's biggest securities firms and banks more than $30 billion in bad loans and trading losses in the third quarter. Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said at the same conference the housing crisis is a ``concern'' and he expects a regulatory reaction to the fallout.
U.S. manufacturers fired workers for a 16th consecutive month in October, while declines in subprime-mortgage lending and homebuilding led to job losses at construction companies and financial institutions. Federal Reserve policy makers will lower the target interest rate again this week to sustain the expansion through the real-estate crash, economists said.
Still, the U.S. economy was resilient enough to overcome the housing crisis, Paulson, a former head of Goldman, said.
``There is enough strength in the economy that we can grow through this,'' the official said. ``We have a strong global economy. We have a strong U.S. economy that is creating jobs every day.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0Pv5mA22dK4&refer=home
Hank, thank you for the insight !
``We haven't hit the bottom yet in housing,'' Paulson said today at a conference in New Delhi.
The fallout from the U.S. subprime market has cost the world's biggest securities firms and banks more than $30 billion in bad loans and trading losses in the third quarter. Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said at the same conference the housing crisis is a ``concern'' and he expects a regulatory reaction to the fallout.
U.S. manufacturers fired workers for a 16th consecutive month in October, while declines in subprime-mortgage lending and homebuilding led to job losses at construction companies and financial institutions. Federal Reserve policy makers will lower the target interest rate again this week to sustain the expansion through the real-estate crash, economists said.
Still, the U.S. economy was resilient enough to overcome the housing crisis, Paulson, a former head of Goldman, said.
``There is enough strength in the economy that we can grow through this,'' the official said. ``We have a strong global economy. We have a strong U.S. economy that is creating jobs every day.''
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0Pv5mA22dK4&refer=home
Hank, thank you for the insight !