Analysing the state that the U.S. economy is in right now, many facing the crisis in the U.S could recognise themselves with the federal program. Henry Paulson U.S Treasury Secretary believes that the Mortgage aid could infact bring about more harm, than good. Paulson feels that homeowners instead of simply walking away should meet their obligation. Paulson also said that he expected the economy to grow this year. Subprime mortgage is acting as catalyst for turmoil caused by the subprime mortgage. Paulson believes that policy response by the Government could deal with issues like securitisation, rating agencies, disclosures and valuation issues.
After making observation of the China economy an interesting quote made by the Paulson was that ” Frankly if China does well economically, it benefits us in our economy”!