Bush takes a question at Thursday's news conference. (AP Photo by Ron Edmonds.)
by Mark Silva
With the stock market on a roller coaster, mortgages foreclosing, the housing market off and new questions being raised about the nation's infrastructure, President Bush is striving to assure Americans that the economy is "strong.''
He stopped at the Treasury Department earlier this week to deliver encouraging words -- while promising to veto congressional spending that threatens to raise taxes -- and then called a press conference yesterday to tout some elements of an American Competitiveness Inititiative which he had proposed and which made their way into law.
"The American economy is the envy of the world, and we need to keep it that way," Bush said, conceding that "I'm not an economist'' but maintaining that he sees strong basic indicators in the state of the economy. "The fundamentals of our economy are strong. ... Job creation is strong. Real after-tax wages are on the rise. Inflation is low."
And with these words the president headed out for an August break, starting in Kennebunkport, Maine, last night and moving on to Crawford, Texas, next week.
For more on Bush's message, see the story in today's Tribune:
President insists
economy is strong
Congress must stay focused
on fiscal priorities, he says
By Mark Silva
Washington Bureau
August 10, 2007
WASHINGTON - Facing an economy beset by volatile stocks, troubled mortgages, a struggling housing market and questions about the stability of the nation's infrastructure, President Bush sought Thursday to reassure Americans that the economy is strong and that his policies will ensure it stays that way.
But the stock market at least remained beyond Bush's reach, as the Dow Jones industrials dropped more than 200 points within minutes of the opening bell and plummeted a total of 387.18 points by day's end to 13,270.68.
The 2.83 percent decline came after more signs that the credit crunch rippling through the nation is spilling into overseas markets. Thursday's big sell-off, the second biggest of the year, was sparked by a French bank, which froze three funds that had invested in subprime mortgages in the United States.
Bush, in a press conference before his vacation, made his second statement on the economy in two days, signaling an apparent desire to avert any anxiety that the economy is stumbling.
"The American economy is the envy of the world, and we need to keep it that way," Bush said. "The fundamentals of our economy are strong. ... Job creation is strong. Real after-tax wages are on the rise. Inflation is low."
The unraveling of the subprime mortgage industry -- higher interest loans made to individuals who have weak credit -- has sent the U.S. markets on a roller-coaster ride for the past several months. The announcement by the French bank BNP Paribas sent fears through markets that the tightening credit might prevent individuals and businesses from borrowing the money they need to keep the economy moving. A move by the European Central Bank to inject more than $130 billion in overnight funds to banks only heightened concern Thursday on Wall Street.
Holding the line
As Bush had a day earlier at the Treasury Department, he portrayed himself Thursday as holding the line for a strong economy by fighting Democrats' spending decisions and efforts to raise taxes.
"The problem in Congress is they have trouble actually focusing on priorities," Bush said. "Appropriators take their title seriously and they all feel like they've got to appropriate, which means there's a myriad of priorities. So the role of the president, it seems to me, is to help Congress focus on that which is important."
The remark prompted a testy response from Senate Majority Leader Harry Reid (D-Nev.).
"It is laughable that a man who has turned record surpluses into record deficits would lecture anyone about proper investments for our nation," Reid said.
Bush will have little time, in the months before the presidential primaries claim the nation's attention, to salvage what is left of a tattered agenda. This fall the agenda largely involves securing continued war spending and enacting a 2008 budget free of new taxes.
When Congress returns from recess, Bush will face Democrats intent on forcing his administration to reveal more about the firings of federal prosecutors, accept some of their spending priorities and justify continued spending on the Iraq war. Gen. David Petraeus, commander of U.S. forces in Iraq, is scheduled to deliver a progress report in mid-September that is certain to determine the course of the debate in Congress.
Bush convened the press conference before a vacation that will be interrupted by work. The president plays host Saturday to French President Nicolas Sarkozy at his family's home in Maine. And he will visit Canada on Aug. 20-21 for a summit with the leaders of Canada and Mexico. But the economy took center stage Thursday, as Bush confronted the impact of a turbulent economy in which mortgage foreclosures have put the stock market on shaky ground.
While conceding, "I'm not an economist," the president maintained that the building blocks of the American economy were sound. "My belief is that people will make rational decisions based upon facts, and the fundamentals of our economy are strong," Bush said.
'A soft landing'
He also offered tentative reassurance on the troubled housing market. "At this point in time that it looks -- we're headed for a soft landing," Bush said.
The president said he would oppose direct grants to homeowners who have lost their mortgages, but would support moves to make mortgage lending more "transparent" and give lenders greater flexibility in mortgage refinancing.
Bush acknowledged that his administration is examining the possibility of cuts in corporate tax rates, but he insisted that any proposal would have to be revenue-neutral, meaning it would not cost the government anything. That could mean eliminating some tax deductions as well as lowering rates.
The president also spoke especially sharply about a proposal by Rep. Jim Oberstar (D-Minn.) to raise gas taxes to fund an overhaul of the nation's bridges. Complaining that lawmakers have spent gas-tax revenue to suit their own priorities at home, rather than where they're needed most, Bush suggested that needs can be met with existing revenue.
"Before we raise taxes, which could affect economic growth, I would strongly urge the Congress to examine how they set priorities, and the bridges are a priority," Bush said. "Let's make sure we set that priority first and foremost before we raise taxes."
Comments
We've got dead people in a river in Minneapolis and Dubya is working on corporate tax rates?
Where's his plan to fix our crumbling infrasctucture? If he's of the opinion that it's up the individual states, then all he has to do is say so.
At the moment his silence is deafening.
Posted by: Doug Zook | August 10, 2007 8:19 AM
Doug, states are responsible for the roads. Who is handling the Dan Ryan reconstruction project: Illinois and Chicago. The feds supply some of the money, the rest is supplied by the state and projects are overseen by the local and state governments.
Anyway, didn't a preliminary report just say there was a design flaw in the bridge that may have lead to the collapse?
What happened in Minnesota should not be a partisan bickering point, but somehoe that is the only way those on the Left can live.
Posted by: John D | August 10, 2007 9:01 AM
I wonder if Bush would agree that repairing our existing bridges is a better use of federal funds than building new "bridges to nowhere" in Alaska.
Posted by: Jeff V | August 10, 2007 10:07 AM
[quote]
Doug, states are responsible for the roads.
Posted by: John D | August 10, 2007 9:01 AM
[/quote]
Except when it's a federal highway. The bridge that collapsed was part of INTERSTATE 35; that's not a state or local road - that's a national highway. Thus, it's the responsibility of the federal government to maintain.
Posted by: BC | August 10, 2007 10:26 AM
John D.,
Gusset plates on some bridges are only the beginning of our infrasctructure problems. Overloaded/dilapidated bridges, airports, roads, railways and schools are all part of the equation too.
All of this degrades our quality of life and productivity.
Posted by: Doug Zook | August 10, 2007 10:32 AM
If the economy is so great, why am I working two jobs and making less than I did in 2001?
Posted by: Angela | August 10, 2007 10:36 AM
Angela,
I am working one job and making more than I did in 2001. So are most of my friends and family members. I'm not belittling your situation, only stating that your situation doesn't necessarily indicate that the economy is bad, any more than my situation, or those of others I know, indicates that it is good.
Posted by: JB | August 10, 2007 10:59 AM
Did Bush list out those strong fundamentals? Did anyone in the press ask him to? Or was he allowed to just change the subject and bash Congress.
Posted by: kb | August 10, 2007 11:21 AM
While conceding, "I'm not an economist," the president maintained that the building blocks of the American economy were sound.
Let me first say that things are going "okay" - they could always be worse right?!
But what building blocks would those be Mr. B?! The deficit? Record consumer debt levels (fueled by those "generous" "tax cuts" perhaps?) Record trade imbalances? Global political instability caused by irresponsible foreign policy? An unstable dollar, lending market, and stock market? The wages for my profession have remained the same for well over a decade now. While the sky is not yet falling, things could always be better. Since you are "the commander guy" and are not "an economist", please refrain from making statements that you know nothing about! Just "stay the course" playing with all of those "building blocks" of yours for the rest of your time in office. Thank you Mr. President!
Posted by: The Decider | August 10, 2007 11:28 AM
Of course the administration is going to state the economy is strong and all is good. This is like reading a chapter, not an entire book. Just because some incomes are up and some taxes may be down doesn't necessarily indicate the economy is strong and in sound shape. Property taxes, health care costs, gasoline, food, and the prices of many goods and services have risen substantially in the last few years. Bush fails to mention that fact.
Posted by: Doug R. | August 10, 2007 11:39 AM
You looney leftists wouldn't know a good economy if it bit you. The stock market now in a correction has been great all year hitting 14,500 at one point it will go back up. Because of the tax cuts government has trillions of tax dollars it never had before. For you tax cuts for the rich dopes, I've got a message from the IRS some 44 percent don't pay taxes at all so they shouldn't worry about fair across the board tax cuts for people that pay taxes. Unemployment at 4.6 percent is at a 40 year low. More people own homes in America today than ever before even under slick Willie. I see a great life ahead I'm glad W is my President and other than being irritated by leftist Dems in Congress I'm good. One other thing global warming is nonsense. Now the bridges do worry me but, not enough to raise taxes the Congress needs to set priorities instead of sin taxes, gas taxes and 70's ideas of how to ration gas just like old Jimma Carter. Jerry White,Springfield, IL
Posted by: Jerry White | August 10, 2007 12:07 PM
Jerry,
You definitely need to get out of Springfield more and stop borrowing John D's insults.
The government is spending more than it rakes in, our trade deficit is monstrous, credit card debt is at records, energy prices are near records, social security is a timebomb, Americans are not saving, healthcare costs are out of control, the dollar is in the toilet, and home foreclosures are about to reach those with good credit.
Now what were you saying?
Posted by: Kenny Bunkport | August 10, 2007 12:28 PM
I'm making money, hand over fist!!! This economy is freaking awesome!!!
Posted by: War Profiteer | August 10, 2007 12:35 PM
"MY CREDIT CARD WORKED, DIDN'T YOURS"
300 - 400 POINTS, WHAT IS THAT, I DON'T LOOK AT THE POLES THEY REALLY DON'T SAY MUCH.
HEY DICK, HOW'S CHENEY RANCH DOING DOWN IN ARIZONA? GREAT GEORGE, WE HAD 75 FORECLOSURES AND I, I MEAN HALLIBURTON WAS ABLE TO BUY ALL OF THEM FOR ABOUT 1.6 MILLION DOLLARS LESS THAN WHAT THEY PAID FOR THEM.
FORGET OUR ECONOMIC FORECASTERS, WHAT DO THEY KNOW ABOUT THE ECONOMY, I WENT TO PRINCETON, SOME OF THE TIME, AND HEY, ITS OKAY BECAUSE IF ANYTHING HAPPENS, WE WILL JUST BLAME IT ON AL QUEDA OR THE MEXICANS OR THOSE BLACK PEOPLE DISPLACED BY KATRINA AND HAVEN'T BEEN ABLE TO LEASE A NEW BOAT TO GET HOME.
$1.29 FOR A LOAF A BREAD, THE DOLLAR ONLY BEING WORTH $.73 CENTS WITH A .08 TAX.
HEY GEOGEY PORGEY CAN YOU LOAN AMERICA .64 CENTS TO GET A LOAF OF BREAD?
LIFE IN AMERICA GEORGE BUSH STYLE JUST FOR YOU AND ME.
GOD WANTS WORLD CUP AMERICA NOT FALSE PROPHETS!
Posted by: Roger Morris | August 10, 2007 12:36 PM
I tricked a bunch of low class rubes into signing complicated and deceitful mortgage agreements. Bless this economy and a complicit Congress that will leave my industry loosely regulated as long as we pour money into their re-election accounts. Sweet, sweet crony capitalism!!
PS Life is great when you can take advantage of people who cannot afford a financial advisor who would no doubt explain the terms of these agreements in terms they could more easily understand. The best part is my allies will show up on blogs such as this and blame the victims.
Posted by: Shady Jackson | August 10, 2007 12:58 PM
"Now the bridges do worry me but, not enough to raise taxes..."
Jerry White,
Finish this sentence - Wish in one hand and
And these bridges will fix themselves how?
Goof.
Posted by: Doug Zook | August 10, 2007 1:05 PM
I read Jerry White, Springfield,IL's comments in the Springfield Journal Register while I was there visiting last weekend - and it sounds just as.... well, different, for lack of a better description, as it does here. He must be proud.
Posted by: Jack | August 10, 2007 1:08 PM
"Because of the tax cuts government has trillions of tax dollars it never had before"
Mr. White in beautiful Springfield Illinois:
I think you might have those "trillions of tax dollars [the government] never had before" confused with the trillions of dollars that the Chinese are lending us.
These tax "cuts" ("cut" as in rich fu%*'s cuttin' & runnin' away with money that should at least be in government coffers and out of Chinese hands or in the pockets of the middle class; or perhaps "cut" as in cut fat reimbursement checks to the Chinese for the next 100 years because we spend too much on bs and don't generate enough revenue) really are not that complicated once you read the code and look at the numbers.
Posted by: Anonymous | August 10, 2007 1:28 PM
Alternate Caption;
'If I could only...,,,'
Never mind, too easy.
Posted by: C.Morris | August 10, 2007 1:51 PM
"Now the bridges do worry me but, not enough to raise taxes"
Jerry White, you are THE ESSENCE of the Won't Do American. In one sentence you summed up just about everything wrong with your party (the "GOP") and this country.
To paraphrase ol' Jerry White: "I know there's a problem that needs to be addressed but I WILL NOT PAY FOR IT and want it to just solve itself."
This is why Republicans are going to be even more thoroughly trounced in 2008 than they were in 2006. We want people with a Can DO attitude, who see problems, and instead of whining like little babies about it, will do what it takes to fix it. If that means raising taxes, well the Daddy Party will have to raise taxes while the Mommy Party cries like Jerry White from Springfield.
Is this still a Can Do nation Jerry White?
Read "The Can't Do Nation"
http://www.washingtonpost.com/wp-dyn/content/article/2007/08/02/AR2007080201752.html
And rebuttal:
http://blog.washingtonpost.com/achenblog/2007/08/outlook_rebuttal_america_still.html?nav=rss_blog
Posted by: Bryan | August 10, 2007 1:54 PM
Alternate Caption:
"If the Congress doesn't pass my budget the way I want them to, I'm gonna hold my breath until I turn blue. Then they'll all be sorry!"
Posted by: Tony | August 10, 2007 1:58 PM
"Unemployment at 4.6 percent is at a 40 year low. "
Jerry White - Liar and nut.
Unemployment was at 3.8% in April 2000, so a 4.6% rate is not a 40 year low.
Unemeployment was at 4.2% in January 2001, so unemployment has INCREASED during Bush's term. The 4.2% in January and February 2001 was also the lowest unemeployment has been at any point during Bush's term.
Posted by: Tony | August 10, 2007 2:31 PM
On word describes this occupant . . . IDIOT!
Posted by: rje | August 10, 2007 2:38 PM
Jerry White in Springfield Illinois- If there are trillions of dollars in the U.S. Treasury, why have we been running deficits for the last 6 years??
And if Dubya Bush is your great President, why is his approval rating like 26%??
You are clueless and pathetic.
I hope you don't do anything drastic down there in Springfield Illinois when Hillary gets nominated.
Posted by: Doug R. | August 10, 2007 3:00 PM
Where's Robin Hood when you need him!!!
Posted by: Logic Prisoner | August 10, 2007 4:08 PM
Looks like all of those lies are constipating him a bit.
Posted by: Rick/Sneads Ferry, NC | August 10, 2007 6:09 PM
Rick S,
Yeah, he has the 'white man's burden' in spades.
Posted by: C.Morris | August 10, 2007 6:38 PM
From the Guardian - a UK paper (ya know chicken hawks, Brits, people that supported the troops, but you'll blast them anyways)
GuardianUK:
Central banks on both sides of the Atlantic pumped billions into the financial system to calm nerves over an impending credit crunch today - but their actions only served to heighten alarm, prompting a fresh plunge in global share prices.
The European Central Bank injected an emergency €95bn (£64.5bn) into the markets in its first intervention since the turmoil triggered by the 9/11 terrorist attacks on New York and Washington DC in 2001.In America, the Federal Reserve added $24bn (£12bn) in temporary reserves to the US banking system to shore up liquidity and bring down short-term interest rates, while the Bank of Canada mounted a similar operation.
The moves, however, seemed to fuel a sense of crisis over defaults in America’s mortgage lending industry which are causing a ripple effect through the banking industry as much of the debt is bundled up and sold on.
On Wall Street, blue chip shares suffered their worst day for four months as the Dow Jones Industrial Average plummeted by 387 points to 13,270. Stock prices swung wildly and trading volumes hit an all-time record with 2.8bn shares changing hands. Of the Dow’s 30 component stocks, 29 ended the day lower.
I got yer "fun"damentals right here.
Posted by: snitramc | August 10, 2007 6:51 PM
I guess its time for the one person who works to chime in.
BC,
States manage the maintenance of federal highways.
Angela,
Two jobs and still time to blog? Two jobs, can't make what you did in 2001? Look in the mirror first.
The economy is good, unemployment is not at an all-time low, but still at a very nice level. The ecoonomy has been growing for almost six years. The deficit in terms of the size of the economy is not large.
Posted by: Terry | August 10, 2007 9:08 PM
Doug you are wrong W's approval ratings are now at 40 percent I guess that's hard for a liberal to follow but, it's the truth and you need to embrace the truth. Jerry White, Springfield, IL
Posted by: Jerry White | August 10, 2007 9:43 PM
Deficits have nothing to do with money going to the Treasury they are based on programs that liberals like Hil and you want pork--you believe that all of America must be a liberal or else. Hey, Doug we believe in personal responsiblity --try it works! Doug you are hopeless and Hil won't win sorry-- Jerry White,Springfield, IL
Posted by: Jerry White | August 10, 2007 10:02 PM
Doug you are wrong W's approval ratings are now at 40 percent I guess that's hard for a liberal to follow but, it's the truth and you need to embrace the truth. Jerry White, Springfield, IL
Posted by: Jerry White | August 10, 2007 9:43 PM
Jerry, I think you are referring to the poll that asked how Bush is doing learning Chinese.
Posted by: Anonymous | August 10, 2007 11:47 PM
Alternate Caption:
I shouldn't have eaten that bean burrito...Oooh, my eyes are burnin'
Posted by: Kevin | August 11, 2007 1:00 AM
I think Bush Administration was all about cover-ups. He will tell you our economy is okay but after a week or two, all you hear in the news is about big companies filing for bankruptcy. He messed up big time...
Posted by: Asx trading | July 28, 2010 1:06 AM