January 16, 2008

Paulson doesn't see home prices reverting to mean

WASHINGTON (Reuters) - Treasury Secretary Henry Paulson on Tuesday said he did not expect housing prices to revert to their mean level after the sharp run-up in recent years, although the sector had seen a long run of unsustainable growth.

"I am not predicting a mean reversion," Paulson said on CNBC television. But he added: "We had a number of years of unsustainable growth."

"There is no silver bullet. There's nothing we can do to let us avoid the problem that is implicit" in the sharp run-up in U.S. housing prices in recent years.

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