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WASHINGTON (Reuters) - Treasury Secretary Henry Paulson warned on Tuesday that the housing correction would continue to hurt the U.S. economy and financial markets for some time and called for assistance for home owners at risk of losing their primary residences.
Paulson, in remarks prepared for delivery at Georgetown University's law school, said he believed further construction declines lay ahead, but the economy was healthy and would manage to grow.
"But let me be clear, despite strong economic fundamentals, the housing decline is still unfolding and I view it as the most significant current risk to our economy. The longer housing prices remain stagnant or fall, the greater the penalty to our future economic growth," Paulson said.