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Press Office
Evolution of an Economic Crisis?: The Subprime Lending Disaster and the Threat to the Broader Economy
Wednesday September 19th, 2007

Until recently, most mainstream economic experts—including Federal Reserve Chairman Ben Bernanke—have suggested that the widespread and serious problems in the subprime mortgage market, while a problem for the holders of subprime borrowers and their communities, would have a minimal impact on the larger American economy. However, a number of recent economic developments—including this summer’s credit crises in global financial markets, driven almost entirely by fears about the collapsing American subprime mortgage market, the accelerating slump in housing markets across the country, and the startling August jobs report—have made it increasingly clear that the economic spillover from the subprime mortgage meltdown is unlikely to be contained to one sector of the economy.

The Joint Economic Committee, will investigate the economic threat that the subprime mortgage mess poses to the broader economy, and to help us learn more about the kind and size of economic problems this crisis may produce going forward.

Opening Statements: Senator Schumer's Opening Statement
  Representative Maloney's Opening Statement
Witnesses: The Honorable Peter R. Orszag, Director, Congressional Budget Office
  Dr. Robert J. Shiller, Stanley B. Resor Professor of Economics, Yale University
  Mr. Martin Eakes, Chief Executive Officer, Center for Responsible Lending
  Mr. Alex J. Pollock, Resident Fellow, American Enterprise Institute
Charts and Data: Chart - Number of Homes for Sale and Months of Supply
  Chart - Interest Only and Negative Amortization Share of Originations
  Chart - Percent of Subprime Mortgages in Foreclosure
  Chart - Real US Home Prices, Real Owners Equivalent Rent and Real Building Costs
  Chart - Residential Investment as Percent of GDP and Real Federal Funds Rate
Location: 216 Hart Senate Office Building
Time: 9:30am

Schumer to Hold Hearing to Investigate Threat of Subprime Lending Turmoil to the Broader Economy

Watch the Hearing