The U.S. economy “has turned down sharply” according to U.S. Treasury
Secretary Henry Paulson, speaking to the Council of Institutional
Investors in Washington, D.C. on Thursday morning.
He said the greatest risk to the economy was the housing sector.
However, Paulson noted some positive developments recently, particularly
in the Hope
Now alliance, and an increase in market share from Fannie
Mae and Freddie Mac.