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Pelosi Statement on Today’s Economic Forum
Wednesday, March 5, 2008
Contact:Brendan Daly/Nadeam Elshami, 202-226-7616
Washington, D.C. – Speaker Nancy Pelosi released the following statement today after hosting a forum with House Democrats and a dozen economic experts this morning to discuss the state of America’s economy, especially the implications for housing and credit markets.
“This morning, we again brought together many of America’s leading economic minds to assess the state of our economy and discuss additional steps to address the subprime mortgage crisis, its growing impact on other credit markets, and the economic hardships facing so many families.
“These economic advisors agreed that additional steps are necessary to address the continuing subprime crisis, which is having an impact on the broader economy on other credit markets, including student loans and municipalities.
"The drop in housing prices spurred by the subprime crisis has resulted in more than 10 percent of homeowners with mortgages that exceed the value of their homes. Moreover, 1.5 million subprime loans are scheduled to reset to higher interest rates later this year. Both developments represent potentially serious problems for our economy.
"They encourage Congress and the President to work together to provide additional options for families who need to refinance their loans to avoid foreclosure.
“Given the credit crunch’s impact on the larger economy, these economic experts also reached consensus that Congress should consider a second stimulus package if the economy fails to rebound. They recommended that this package include fiscal relief for states and localities and funding to address Medicaid shortfalls, as well as improvements in unemployment benefits.
“The New Direction Congress will continue to work with the President to address the subprime mortgage crisis and get our economy back on track. Democrats in Congress are prepared to work in bipartisan way to restore our economic strength, create jobs, and renew the American dream for the middle class and those who aspire to it.”
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In addition to the Democratic Members of Congress, the following 12 experts attended the forum:
- Alan Blinder - Gordon S. Rentschler Memorial Professor of Economics, Center for Economic Policy Studies, Department of Economics, Princeton University
- Patrick Clancy - President, The Community Builders
- Eugene Ludwig - Chairman and Chief Executive Officer of Promontory Interfinancial Network, and former U.S. Comptroller of the Currency
- Jeff Madrick - Director of policy research at the Schwartz Center for Economic Policy Analysis, The New School
- Edward Montgomery - Dean, University of Maryland, College of Behavioral and Social Sciences
- Lewis Sachs - Partner, Chairman of the Investment Committee, and Member of the Management Committee, Mariner Investment Group, Inc
- Ellen Seidman - Director, Financial Services and Education Project, New America Foundation
- Allen Sinai - Founder, Chief Global Economist and President, Decision Economics Inc.
- Larry Summers - Professor and Past President, Harvard University; former Treasury Secretary
- Laura Tyson - American Economist and former Chair of the President's Council of Economic Advisors and Senior Fellow, Center for American Progress
- David Wilcox - Deputy Director, Research and Statistics Division, Federal Reserve Board
- Mark Zandi - Chief Economist and co-founder, Moody’s Economy.com
