US Ministry of Finance: housing crisis will not finish this year
19 August 2008US Minister of Finance Henry Paulson does not expect correction of a situation in the real estate market of the USA.
In interview of broadcasting company NBC he has declared, that crisis in this market, which is characterized by a proceeding falling of the prices for habitation and growth of number of bankruptcies because of inability to pay off on hypothec to credits, is their main economic problem as the countries.
According to Paulson, the government does not have plans of rendering of the emergency help to two hypothec companies Freddie Mac and Fannie Mae, which finance about 70 % of all transactions under the mortgage in the USA though the last month the Congress has allocated the American Ministry of Finance with powers to get their shares.
Thus, from Paulson’s point of view, the government should support these institutes, having strengthened the control over them as the confidence of world investors depends on their stability in many respects.
In May prices for houses in 20 US largest mega cities have fallen on 15,8 % in comparison with the same period of the last year. In the second quarter the number of alienations of habitation for debts has jumped up on 121 % in comparison with the second quarter of the last year.
