Sean Patrick Maloney: “the President says his policies are working to make the economy strong and that all Americans are benefiting. But…”

“the President says his policies are working to make the economy strong and that all Americans are benefiting. But evidence of a slowing economy is building, and anxiety over the state of the economy remains high. The credit crunch, the worsening housing slump, market volatility and weak consumer confidence point to a gathering storm that could drag down the economy, taking thousands of American jobs with it. Risks in the housing market and weak business investment point to the growing uncertainty of which way the economy is heading. We are facing a tsunami of defaults and foreclosures in the subprime market which could have broader implications for the overall economy. RealtyTrac reported that foreclosures in August increased 36 percent since July and 115 percent since this time last year. Expectations are that the next 18 months will be even worse as many subprime loans reset to higher rates. The ability of American consumers to keep spending may be flagging with the cooling housing market. Consumer spending has been propping up the economy, but high energy prices and a worsening housing slump could force consumers to cut back, putting the economy at even greater risk. American families are understandably worried about the future because the economy is weakening even before many have shared in the gains from the economic growth we have seen so far. Employee compensation has lagged far behind productivity in this recovery.”