WORLD> America
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WORLD> America
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Paulson braces public for months of tough times
(Agencies)
Updated: 2008-07-21 09:24 The House plans to vote Wednesday on a housing bill that is expected to include a rescue for Fannie Mae and Freddie Mac. The companies' shares have plummeted because of fears about their financial stability. Fannie Mae and Freddie Mac are private, but they were created by Congress to encourage homeownership by buying mortgages from banks. The two hold or guarantee more than $5 trillion in home loans -- almost half of the nation's total. "Our first priority today is the stability of the capital markets, the stability of the system. And these institutions have investors all around the world ... and those investors need to know that we in the United States of America understand the importance of these institutions to our capital markets and to our economy and to our housing market," he added. Paulson acknowledged the US is continuing to lose jobs, though he said the $168 billion economic relief plan approved this year has created jobs that would not otherwise exist. The plan included tax rebates for people and tax breaks for businesses. Democratic leaders, including presidential candidate Barack Obama, are pushing for a second, smaller, economic installment. Paulson said he did not want to speculate about that idea. "I'm focused on this stimulus package. It's made a difference in the second quarter. It's going to make a difference in the third quarter. We need to watch this very carefully," he said. "Right now we're going through a tough period. There is no doubt about it. But the stimulus plan is making a difference," he said. The second-ranking House Republican, Rep. Roy Blunt of Missouri, said he was "open-minded" about a follow-up aid plan. "If they bring things to the table they know the president's not going to do, that has very little to do with stimulating the economy. It's all about a political discussion between now and the election," he said. Paulson appeared on "Face the Nation" on CBS and "Late Edition" on CNN. Blunt was on CNN. |
