Reply #47: Gov't Official: Hit to Economy Not Over

[Eugene]

Source: Associated Press

Gov't Official: Hit to Economy Not Over

By MARCY GORDON, AP Business Writer

Wednesday, September 5, 2007

(09-05) 09:12 PDT WASHINGTON (AP) --

The full impact of the upheaval in financial markets "has yet
to play out," a top administration official said Wednesday,
while stressing that the effect will be dampened somewhat
by solid economic growth.

Robert Steel, Treasury undersecretary for domestic finance,
appeared before a House committee as the worst housing
slump in 16 years and roller coaster financial markets cast a
shadow on the economy.

"What we have is a severe lack of investor confidence," said
Rep. Barney Frank, D-Mass., chairman of the House Financial
Services Committee. He said he hopes that Congress and
the administration will work together on solutions for the
mortgage squeeze.

Stocks fell sharply Wednesday morning, as a nervous Wall
Street digested a report showing a large drop in pending
home sales. The Dow Jones industrial average dropped
about 160 points in morning trading.

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Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2007/09/05/national/w091252D08.DTL