PAULSEN oppose the United States finance the rescue the property market
Posted on Feb-29-2008· by china investor
PAULSEN do not believe that the current market situation requires taxpayers to pay more taxes. IC Federal Reserve Chairman Bernanke information on the 27th that will be further cut at the same time, the United States Department of Commerce published the same day the United States in January new home sales also set a record low since 1995. The United States Treasury has said that the day Paulsen, housing owners oppose spending huge sums – save, and his reasons are: acts of the Government's assistance can fully control the situation.
New home sales declined for the United States in March downturn in the housing market in January this year, further deterioration, the United States Department of Commerce announced on the 27th of the data revealed that in January this year, the United States one month before the new home sales fell 2.8 percent to a seasonally adjusted annual rate of 588,000 units, in February 1995 is the lowest point since. This is America, the third consecutive month, sales of new homes fell.
At the same time, new home sales in January dropped by U.S. 4.3% to 216,000 US dollars each, in September 2004 for the lowest point since.
With the decline in sales to the end of January, the backlog number of new houses for sale at an annual rate of up to 482,000 sets by month sales pace, the need to be 9.9, these housing sales End, which is the past 26 years the longest time.
The United States announced on the 26th of the data also showed that in January the number of housing recovery year rose by 90% to 4.5 million units, the loss of mortgage foreclosure and the number rose by 57 percent over last year in December rose 8 %, since last August and the highest level since.
Moreover, the United States in January sales of existing homes also fell to the lowest level since 1999, the U.S. sales of existing homes fell to 201,100 US dollars each. Economists believe that the backlog due to the large number of houses for sale, home sales prices in the coming months may also continued to decline.
"Will not spend money to help owners difficulties"
Faced with the Democratic Party, bankers, economists and consumers asking the Government to use large amounts of funds for the housing difficulties of the owners appealed to the Bush administration's increasingly tough opposition.
U.S. Secretary of the Treasury on the 27th Paulsen said in an interview made it clear that, at present, Washington is implementing many assistance plans are in helping imprudent loans, investors and speculators, but we are not to a lack of cash collateral loans provided substantive measures.
Paulsen said that in view of 2008 there may be up to 2 million Americans lost their houses redemption, the Bush administration market-based measures to prevent the situation out of control, the central link in the mortgage industry to take the initiative to help some borrowers . "I do not think the present situation requires taxpayers to pay more tax." Furthermore, the United States Office of Federal Housing Enterprise Oversight said on the 27th will be abolished in the United States this week six two largest mortgage lending institutions – the Federal National Mortgage Loan Association ( "Fannie Mae") and Federal Mortgage Corporation ( "Freddie Mac") investment limit, which the United States is expected to ease the secondary mortgage market crunch.
As Fannie Mae and Freddie Mac have broken out after major financial scandals, in 2006 the regulatory authorities of the two entities set up a mortgage loan assets ceiling that the two mortgage portfolio ceiling of 1.4 trillion dollars. For the Government to abolish its investment limit, Fannie Mae CEO in Madrid, said the company would proceed with caution, wish to limit losses.
"Recession risk than inflation"
Faced with the bad economic situation, Federal Reserve Chairman Bernanke on the 27th in the Senate on monetary policy report, the Fed will cut interest rates further in March. New York after the major indexes closed generally higher, but profit-taking as investors take operation, the three major indexes ended the day mixed, but not ultra-one percent rate.
As the market expected, Bernanke day or downlink prominent economic risks, but he will be concerned about inflation as the second target. The outsiders believe that, which is equivalent to admit that the current weak economic growth and rising prices at the same time the situation of stagflation.
Bernanke's speech and in his speech and the beginning of this month Fed Vice Chairman Cohen's remarks the same stand on Tuesday that Fed officials might as most economists expect, in the March 18 meeting of a rate cut again .
"Sluggish housing market and consumer and corporate credit crunch is expected to be the situation in the next two years to continue to bring pressure on the growth, the recent cut in interest rates is expected in 2010 to promote economic growth in the trend line."
In this Congress every six months to submit a report of the monetary policy, Bernanke reiterated last week lowered the GDP growth view that this year's GDP growth rate will be 1.3 to 2 percent, in 2009 the GDP will grow 2.1% to 2.7%, and then in 2010 to 2.5 to 3 percent. He also expected the inflation rate will remain at policy-makers hope that by the 1.5-2% range above. (Ye Fu Jia)
Tags:
Leave Your Comments