September 27, 2007

Statement of Senator Dodd, Chairman of the Senate Banking Committee, on Release of Recent Economic Reports

Washington, D.C. - “Today’s economic reports indicate that there are still serious threats to our nation’s economic health. The continued decline in the housing market, as evidenced by the over 8% fall in new homes sales last month, is a source of serious concern. This is especially true considering that this number does not capture the millions of Americans who are trapped in unaffordable subprime Adjustable Rate Mortgages (ARMs) who may soon face foreclosure. While there is no single solution to the housing problems that confront us, there are some answers, including modernizing the Federal Housing Administration, and I urge my colleagues in the Congress to act on the legislation that I have authored and passed out of the Senate Banking Committee. “It is welcome news from the Bureau of Economic Analysis that our economy grew at 3.8% in the second quarter. After a year of economic growth below 2%, our economy needs prolonged strong growth, so that working families can reap the benefits that they ought to, considering that they form the backbone of the world’s strongest engine for economic growth. I am concerned though, that growth at this level can not be sustained going forward because of continued poor economic policies from this Administration. Second quarter economic growth was revised downward today, in large part, because trade figures were worse than what was originally anticipated. With the dollar at record lows against the euro, it has failed to adjust with respect to the yuan, because of continued currency manipulation by the Chinese. Yet the President fails to even acknowledge that the Chinese are manipulating their currency, much less take appropriate action. Senator Shelby and I have authored legislation that takes strong and responsible steps to address unfair currency manipulation by China and other countries as well as the denial by those countries of free and fair access to their markets by American financial services firms. This legislation has passed the Banking Committee and urgently needs to be enacted.”