"The fundamentals of the U.S. economy are strong," Bush said. "TheSo the fundamental question is that the fundamentals are strong? What if the new view on decreased liquidity is shifting the fundamentals? I mean there have been 87,962 job cuts so far this year caused by this mortgage mess. The days of people using their home as piggy banks to buy stupid stuff are over as well. Now people are having a hard time getting a mortgage even if they have decent credit. If tightening credit moves to the credit card market things will be even worse I think.
fundamental question, 'Is there enough liquidity in our system?' And the answer
is `Yes, there is,'" the president declared.
In any case it seems that the Dems want to make the mortgage mess the governments mess as well.
On Capitol Hill, some Democrats would like to see mortgage giants
Fannie Mae and Freddie Mac -- which are recovering from accounting scandals --
play a larger role in the mortgage market. Some would like to see the two
mortgage companies buy "jumbo" mortgages of more than $417,000.
Separately,
others, like Dodd, would like to see investment caps relaxed on the companies'
investments. The administration, however, opposes that idea.
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