Video related to this article is available below.Issue date: 3/25/08 Section: News
On campus, Clinton addresses economy
Colin Kavanaugh
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"In today's world, trouble that starts on Wall Street often ends up on Main Street," the New York senator said, with Philadelphia Mayor Michael Nutter and Pennsylvania Gov. Ed Rendell at her side
Clinton outlined a four-part plan she said would relieve the increasing foreclosure rate and help unfreeze the housing market.
Since 2006, the foreclosure rate on homes in the United States has increased by 75 percent - with 2.2 million foreclosure notices going out in 2007.
In recent polls, voters have consistently named the economy as their top concern leading up to Pennsylvania's April 22 primary.
In an interview before Clinton's address, Rendell said that Pennsylvanians desire "good, high-paying jobs that can't be outsourced," such as those in the life sciences, renewable energy and infrastructure.
In the first part of her proposal, Clinton said she supports legislation in Congress that would "expand the government's capacity" to support mortgage companies that buy and restructure mortgages to make them "more affordable for families."
She then said the Federal Housing Commission should "be a temporary buyer" on subprime mortgages, which would adjust their value to make them more available for low-income families.
In her second proposal, Clinton called for the creation of an "Emergency Working Group on Foreclosures" that would advise on the implementation of the new legislation.
Recently, the Federal Reserve lent $30 billion to JPMorgan Chase to buy up Bear Stearns Corporation to address Bear Stearns' financial crisis and prevent possible collapse.
Clinton said that if the Fed can do that, then it should also "help families and communities" deal with the subprime mortgage crisis.
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