The housing market is in a major slump - the worst since the Great Depression. While the slump shows no signs of easing up anytime soon, numerous individuals have clamored to be the ones to call 'the bottom' in the housing market.

The latest individual is none other than Henry Paulson, the Treasury Secretary. In an interview with a small group of reporters outside of the Treasury last week, Paulson refused to answer several questions relating to hedge fund troubles and other matters, but he did willingly offer up his thoughts on the current housing market slump and the effect it will have on the economy.

'We have had a major housing correction in this country,' Paulson told reporters. 'I do believe we are at or near the bottom.'

Some might say that his comment is just another example of why there is so much confusion over the state of the housing market and where it is heading - at every turn, there has been someone saying, 'This is it. Housing has finally hit bottom.'

There is, however, no evidence that this is the case. Home sales have slowed to a crawl, builder confidence is at an all time low and a glut of inventory is threatening to drown entire neighborhoods. There is also an increasing amount of foreclosure activity and problems in the subprime lending sector that are just too large to ignore.

These factors are predicted to batter the already battered market throughout 2007 and into 2008. Millions are expected to lose their homes during this period and another significant portion of the population could be out of a job as the shrinking market puts pressure on employers. Bank of America Corp. analysts, housing experts, home builders and numerous economists have referred to the current problems as the 'tip of the iceberg'.

Still, Paulson maintains that losses have been 'largely contained' and the issues don't 'pose a risk to the economy overall'. Many of the comments seem to be little more than an echo of what Paulson said in April when he referred to the U.S. economy as 'very healthy' and 'robust', but it sort of makes those who follow the market wonder if he believes what he is repeating or if he is simply trying to avoid telling it like it is.