Economy Solid Despite Housing Fiasco

Recent problems in the subprime lending industry have affected broader financial markets in the U.S. and reverberated throughout the global economy. Without minimizing the problems — or the strains that they have placed on many American homeowners — it is important to remember that our economy remains fundamentally strong. The fallout from imprudent mortgage lending practices and reckless real estate speculation has undeniably been painful, but our free market system is working to address the hardships arising from these excesses.