Economic Slump Shows Impact Of Subprime Troubles Shouldn't Be Minimized, Says Menendez

Economic Slump Shows Impact Of Subprime Troubles Shouldn't Be Minimized, Says Menendez

Economy posts slowest growth in four years during first quarter of 2007, housing market cited as cause

Washington - The Commerce Department reported today that the U.S. economy grew only by a sluggish 1.3 percent during the fourth quarter of 2007 - the slowest pace in four years. Analysts have attributed much of the slump to the downturn in the housing market.

U.S. Senator Robert Menendez (D-NJ), one of the Banking Committee's strongest voices on the turmoil in the subprime mortgage market, today released the following statement:

"For the past few months, a number of experts and officials have come before our committee with the hopeful message that the recent subprime turmoil will not drastically affect the larger U.S. economy. Today's economic report shows that we have to grapple with the possibility that the tsunami of foreclosures are not happening in a vacuum. We need to seriously consider that the subprime storm could batter the overall economy, and we need to determine if proactive Congressional action can help minimize the damage."

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