The US Housing Market and the Subprime Mortgage Crisis (B): Impact on the US Economy
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
“The Federal Reserve is not currently forecasting a recession.”1
- Ben Bernanke, Chairman of the US Federal Reserve, in January 2008.
“The economy is strong, flexible and dynamic enough to weather this storm.”2
- George W. Bush, President of the United States, in December 2007.
“Housing has been providing a headwind to the economy, and there is a penalty to growth from the current situation in housing.”3
- Robert Steel, the US Treasury Under-Secretary for Domestic Finance, in October 2007.
1] “Fed Boss Says 2008 Outlook Worse,” http://news.bbc.co.uk,
January 11, 2008.
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