Americas Watchdog and its National Mortgage Complaint Center are contesting claims made by Henry Paulson, Jr., the Treasury Secretary, at an appearance he made on May 7, 2008. Paulson stated that the U.S.' credit crisis is nearing an end, and, in response to this statement, Americas Watchdog called the statement "a self-serving lie, from a U.S. political appointee."

"A very greedy Wall Street, and a bought and paid for Congress and (the) Bush administration got us into the worst real estate disaster since the great depression, and now the best they can do is lie about the very dire future for the U.S. economy," Americas Watchdog said via a press release. "All of the perceived U.S. real estate equity supposedly gained between 2003 and 2006 has vanished, or is in the process of vanishing, and Secretary Paulson thinks the credit crisis is nearing an end?"

The consumer advocacy group intimated that a better, more accurate statement would be that more than $2 trillion in perceived equity has vaporized as U.S. banks lent money on the equity. Now, these funds are gone, the group said, as the banks sold these mortgage loans to pension funds, and are now being forced to buy them back.

The group added that the administration and Congress have only furthered the problem by offering many U.S. taxpayers a $600 rebate, which it deems as "one more pathetic waste of money from Congress."

In addition to the stimulus package, Americas Watchdog found further fault with Congress for proposing what it called "a $50 billion bail-out" aimed at saving those facing foreclosure. Acording to Americas Watchdog, this aid is a drop in the bucket that would be needed, and the legislation only helps out real estate flippers; people who put zero down on a home they could not afford; people who did not bother to read their mortgage before they signed it; and people who have not made a mortgage payment in a year.

The consumer advocacy group claims that it stated, as far back as 2004, that the U.S. real estate frenzy would end in a disaster, and believes the new legislation leaves taxpayers picking up the tab. Furthermore, in response to efforts by the Federal Reserve to correct market anxiety, Americas Watchdog believes it failed miserably.

"While they have given big U.S. banks and investment bankers lower interest rates, these cuts have done little to dramatically lower mortgage rates," the group stated. "The National Mortgage Complaint Center is on record as saying, 'U.S. real estate prices will drop an additional 10 percent or more in 2009'... which begs the question, why buy a home today if it will be worth 10 percent less in 2009?"

According to Americas Watchdog, solutions to these problems start with leadership and integrity from representatives in Washington, D.C. These solutions would start with a Congress that does the people's business as opposed to one back room deal after another, the group reiterated.

Lastly, the consumer advocacy group drew attention to what it deemed a "huge mortgage kickback called a 'yield spread premium.'" The group said that while mortgage brokers are required by law to disclose this kickback, banks and mortgage bankers are not required to do so.

"If anyone really wants to understand why we have a biblical-type U.S. real estate disaster, one look no further than a very greedy Wall Street... and U.S. banks that had no obligation to provide a consumer with transparency with respect to the outrageous fees they were making on home loans, and the U.S. Congress that accepted big bucks, to look the other way," the group stated. "Fifty million U.S. homeowners pay a higher monthly mortgage payment because a bank or mortgage banker was not required to disclose the kick back they received for inflating a homeowners interest rate/monthly mortgage payment."

The group is demanding that now is the time for honesty and wants integrity from the U.S.' elected leaders, blaming the subprime mortgage meltdown on the lack of integrity found in the nation's capital.

"It's time for real honesty and transparency before it's too late," the group added.