Bush Tries to Calm Markets With Mortgage Plan
By Reuters
Reuters
| 31 Aug 2007 | 01:31 PM ET
President Bush tried to calm financial market turmoil from the credit crisis by announcing proposals intended to prevent homeowners from defaulting on risky mortgages.
Rising U.S. defaults on so-called subprime mortgages to less credit-worthy borrowers have caused volatility in financial markets around the world and raised concerns that the U.S. economy could fall into recession.
In trying to soothe those worries, Bush said the U.S. economy was healthy enough to weather the credit crisis and that the subprime market problems represented only a "modest" part of the economy.
"The recent disturbances in the subprime mortgage industry are modest. They're modest in relation to the size of our economy," he said.
Read more here:URL: http://www.cnbc.com/id/20521776/
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