2008 Woodie Awards
Video related to this article is available below.Issue date: 3/25/08 Section: News
On campus, Clinton addresses economy
Colin Kavanaugh
She called for the creation of a "one-time emergency $30 billion fund that would go directly into cities and states," which would be used to purchase foreclosed or distressed properties and sell them as affordable housing.
In the speech, Clinton compared her plan to proposals already in place in Philadelphia and Pennsylvania, including Rendell's similar emergency program that has "saved up to 40,000 homes" in the state.
The final point aimed to protect mortgage companies that try to restructure mortgages for families but that are at risk of being sued by investment banks.
However, not all market experts agree with Clinton's plan.
Wharton finance professor Jeremy Siegel, who is widely regarded as an authoritative financial analyst, said there are a "number of problems" with Clinton's proposal.
Siegel said he expects the Fed to "get back every penny" of its $30 billion loan to prevent Bear Stearns' collapse.
Siegel also said the Fed would get back nothing if it lent that same amount to localities, where he said there is "a lot of room for corruption."
He added that the plan would not help the banks that face the most risk right now.
"To worthy people who were misled, some relief is worthy," Siegel said, but he added that the overall economy would be better served through assistance to financial institutions.
In the speech, Clinton compared her plan to proposals already in place in Philadelphia and Pennsylvania, including Rendell's similar emergency program that has "saved up to 40,000 homes" in the state.
The final point aimed to protect mortgage companies that try to restructure mortgages for families but that are at risk of being sued by investment banks.
However, not all market experts agree with Clinton's plan.
Wharton finance professor Jeremy Siegel, who is widely regarded as an authoritative financial analyst, said there are a "number of problems" with Clinton's proposal.
Siegel said he expects the Fed to "get back every penny" of its $30 billion loan to prevent Bear Stearns' collapse.
Siegel also said the Fed would get back nothing if it lent that same amount to localities, where he said there is "a lot of room for corruption."
He added that the plan would not help the banks that face the most risk right now.
"To worthy people who were misled, some relief is worthy," Siegel said, but he added that the overall economy would be better served through assistance to financial institutions.
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