• Price Change UP Icon Gold $2,231.00 +41.00
  • Price Change UP Icon Silver $24.95 +0.39
  • Price Change UP Icon Platinum $915.00 +11.00
  • Price Change UP Icon Palladium $1,026.00 +25.00
U.S. Budget Deficit
August 9, 2023

Will federal deficits surge from subprime fallout?

Financial Times, by James Politi and Krishna Guha in
Share On Social Media

“Barney Frank, the powerful Democratic chairman of the House financial services committee, issued a stark warning at a breakfast meeting with reporters in Washington on Thursday. If lawmakers and the administration failed to agree on new housing legislation, the US recession would be “longer and deeper” than expected.

The corridors of Capitol Hill have emerged as the critical venue for the shaping of economic policy and Mr Frank, veteran congressman from Massachusetts, is one of the key actors in the legislative drama.

Along with Chris Dodd, chairman of the Senate banking committee, Mr Frank is proposing a high-stakes government intervention in the US mortgage market, using up to $400bn (£202bn) in guarantees backed by taxpayers.

The negotiations over the legislation, which was moving through Mr Frank’s committee on Thursday, are ex-pected to become tougher in the coming weeks.

For most of last year, Washington’s response to the credit crisis was being directed by the Federal Reserve, which was lowering interest rates, and the Treasury department, which was attempting to encourage private-sector loan modifications in the increasingly troubled housing industry.

But by early December, it became clear that significant action was needed on a legislative level. The first move was to forge a consensus on a $170bn fiscal stimulus package designed to bolster consumption in the second half of 2008.”

*This information is solely an excerpt of a third-party publication and is incomplete. Please subscribe to the referenced publication for the full article. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.

Get Your Free Report
A Rising Storm
All form fields are required *
Thank You

Want your kit sooner?

Faster delivery
is available by phone.

800-444-8317

Download Your Report

Enter your phone number to be connected to a Monex Account Representative.

Thank You
Want your kit sooner?

Faster delivery is

available by phone.

800-444-8317
All form fields are required *
Embed Spot Prices!
Copy and Paste below code into your HEAD tag / before end tag of body to embed chart.
Copy and paste code below wherever you want your chart displayed.
Copied to clipboard
Embed This Chart!
Copy and Paste below code into your HEAD tag / before end tag of body to embed chart.
Copy and paste code below wherever you want your chart displayed.
Copied to clipboard
FREE REPORT OFFER
A Rising Storm
Thank You
Please check your email for a confirmation link and Free Report!
I agree to receive news and promotional material from this website and understand I can cancel at any time. Privacy Policy