January 25, 2008

DODD TO PAULSON: HOUSING CRISIS CATALYST OF ECONOMIC CRISIS

Meets with Treasury Secretary to discuss ways to strengthen economy by addressing the crisis in the mortgage markets and rising foreclosure rates

Senator Chris Dodd (D-CT), Chairman of the Banking, Housing, and Urban Affairs Committee, today continued his efforts to address the recent weakening of the U.S. economy by meeting with Treasury Secretary Henry Paulson to discuss stimulus package proposals and efforts to reduce record foreclosure rates which are forcing people out of their homes. Dodd, who has tied the recent economic downturn to the foreclosure crisis, has urged leaders in Congress and the Administration to incorporate provisions that deal with the housing crisis in any stimulus bill they present to the President. “The face of the economic crisis is the housing crisis. And the face of the housing crisis is the foreclosure crisis. So a short-term package clearly needs to provide some relief for people out there who are facing very, very serious economic problems,” said Dodd. “While housing-related provisions represent a relatively small piece of this short-term package, I think they will be the tail that wags the dog in terms of injecting meaningful stimulus into the economy.” “I got the Chairman’s advice on stimulus, so we talked about that,” said Secretary Paulson after the meeting. “We had a good opportunity also to talk about housing issues, the state of the economy, and I was very pleased to hear him emphasize how focused he’s going to be on getting some GSE reform.” Dodd will hold a hearing next Thursday to further examine ways to strengthen the economy by addressing the turmoil in the mortgage markets and rising foreclosure rates.