Paulson reversed down the U.S. economy look bad.

<P> U.S. Treasury Secretary Henry Paulson said Thursday that the U.S. economy has "significant downward reversal",'s remarks that he recently described as the most pessimistic on the economy. .U.S. blue-chip index of economic indicators survey also shows that most American economists believe the U.S. economy in recession, or will fall into recession this year. .</ P> <P> While fear may further undermine investor and consumer confidence, Paulson avoided using the word recession, but these goals are ambitious still pessimistic remarks inevitably affect market confidence. .</ P> <P> (http://finance.) Paulson Committee to institutional investors, said a speech, policy makers are still very concerned about the foreclosure of collateral by the sharp increase in housing caused by difficulties of financial markets. .He is expected to be approved by Congress in early summer prior to the over one hundred million Americans a tax rebate economic stimulus package will be able to have a positive impact, I believe can make a substantial improvement in the U.S. economy. .</ P> <P> Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) and other government-sponsored mortgage companies have been reached with the relevant regulatory bodies to increase the capital of the agreement, this Paulson .One approach was welcomed, but also because of the government not to make legislative changes to these enterprises deplored. .</ P> <P> Paulson also called on Congress to push forward the reform of the Federal Housing Administration; He said this was for the battered U.S. housing market is very important. .He said the housing market is causing a major factor in the capital market turmoil, housing there is a complex mortgage-backed securities, which means that resolving the crisis have yet time. .</ P> <P> He added that regulators plan to encourage lending institutions, mainly through increased capital market volatility to control the impact of the economy. .He suggested that the company needed additional capital capital increase, and should not expect the federal government's assistance. .In addition, the Federal Reserve (Fed) as a long-term loans to people, organizations should monitor their borrowers. .He said the President Working Group on Financial Markets will carefully discuss the issue. .</ P> <P> Turning to the recent announcement of the Ministry of Finance on the U.S. financial regulatory reform plan, Paulson pointed out that before the advent of the current market turmoil, this plan has been discussed for a long time, and many of the planned changes will require the .years to be implemented. .One of the controversial project the U.S. Securities and Exchange Commission proposed merger (SEC) and Commodity Futures Trading Commission (CFTC). .Paulson expressed, CFTC regulated exchanges of more modest means will be more flexible, more effective, but that does not mean the SEC's enforcement responsibilities should be relaxed. .</ P> <P> At the same time, Bernanke answering questions after a speech in Richmond, said he thought the decision-makers can not completely eliminate the financial crisis, but the government can take a lot of measures to strengthen the financial system, and improve financial .the way the system response to the crisis. .</ P> <P> Although policy-makers tried to save the people's confidence, but in an increasingly grim situation is difficult to play effect. .U.S. blue-chip index of economic indicators survey found that more than half of the respondents economists believe the U.S. economy in recession, or will fall into recession this year. .Meanwhile, half of the respondents think the U.S. job market this year, economists will tell atrophy. .But economists also believe that the recession was relatively mild, because the Fed cut interest rates again and again and the government's economic program will help support the economy. .</ P> <P> The survey pointed out that personal spending is expected this year will show a minimum increase of seventeen years, corporate profits before tax appears to reduce the first time since 2001, fixed investment from overseas will also be the lowest since 2003 .growth rate, while industrial production will also be the smallest increase since 2002. .</ P> <P> This survey was implemented in early April, and economic indicators over the past month, economists surveyed so pessimistic economic outlook, including the largest index of economists is to show continuous employment in March .the first three months of decline. .</ P> <P> economists surveyed in the first quarter U.S. economic growth forecast of 0.1%, the same with the previous survey, but the forecast for the second quarter was revised down 0.1 percentage points, from 0.2% to .0.1%. .As for the economic growth rate this year, economists now forecast is 1.4%, 1.5% lower than the previous survey, it is less than the Federal Reserve cut interest rates in September last year, when the forecast of 2.6%. .</ P> <P> since last September, the Fed has cut the federal funds rate a full three percentage points, while the Fed is expected to hold policy meeting later this month will continue to cut interest rates. .</ P>.