Politics | Hillary Clinton Feds Must Ward Off Stagnation, Clinton Says Says buying mortgages might be necessary to avoid prolonged skid By Jim O'Neill Posted Mar 27, 2008 11:15 AM CDT Copied Democratic presidential hopeful Sen. Hillary Rodham Clinton, D-N.Y., hugs her daughter Chelsea Clinton a rally at Daughters of the American Revolution (DAR) Constitution Hal in Washington, Wednesday. (AP Photo/Lawrence Jackson) The government should step into the mortgage mess on a broader scale, Hillary Clinton told the Wall Street Journal yesterday, suggesting monetary policy alone can’t ignite a recovery and warning that procrastination could lead to stagnation similar to Japan’s weary economy. Clinton said the Federal Housing Administration should buy troubled mortgages in combination with a program to auction defaulted loans. Clinton and rival Barack Obama—who delivered an economic policy speech in New York today—have similar economic plans, although Clinton’s suggests a deeper governmental role in resolving the housing crisis—an approach criticized yesterday by Treasury Secretary Henry Paulson. Clinton is launching a six-day "Solutions for the American Economy" tour of North Carolina, Indiana, and Pennsylvania. Read These Next New York Times ranks the best movies of the 21st century. Actor Sam Rockwell gets residuals from movie he wasn't in. A man has been deported for kicking an airport customs beagle. White House rolls with Trump's 'daddy' nickname. Report an error