by Mark Silva
President Bush traveled this week to the scene of the crime that has befallen the economy -- Wall Street -- to voice his optimism about the path ahead.
"In the long run, we can be confident that our economy will continue to grow, but in the short run, it is clear that growth has slowed,'' he added with his weekly radio address today.
He has taken action, he says -- with tax rebates reaching some 130 million households in May. But it would be wrong, he says, to takeexcessive action.
"When you are steering a car in a rough patch, one of the worst things you can do is overcorrect,'' the president said. "That often results in losing control and can end up with the car in a ditch.
"Steering through a rough patch requires a steady hand on the wheel and your eyes up on the horizon. And that's exactly what we're going to do.''
See the rest of the address here:
This is the text of the president's radio address:
Good morning. On Friday, I traveled to New York City to talk about the state of our economy. This is a topic that has been a source of concern for families across America. In the long run, we can be confident that our economy will continue to grow, but in the short run, it is clear that growth has slowed.
Fortunately, we recognized this slowdown early, and took action to give our economy a shot in the arm. My Administration worked with Congress to pass a bipartisan economic growth package that includes tax relief for families and incentives for business investment. I signed this package into law last month -- and its provisions are just starting to kick in. My economic team, along with many outside experts, expects this stimulus package to have a positive effect on our economy in the second quarter. And they expect it to have even a stronger effect in the third quarter, when the full effects of the $152 billion in tax cuts are felt.
A root cause of the economic slowdown has been the downturn in the housing market. I believe the government can take sensible, focused action to help responsible homeowners weather this rough patch. But we must do so with clear purpose and great care, because government actions often have far-reaching and unintended consequences. If we were to pursue some of the sweeping government solutions that we hear about in Washington, we would make a complicated problem even worse -- and end up hurting far more homeowners than we help.
For example, one proposal would give bankruptcy courts the authority to reduce mortgage debts by judicial decree. This would make it harder to afford a home in the future, because banks would charge higher interest rates to cover this risk.
Some in Washington say the government should take action to artificially prop up home prices. It's important to understand that this would hurt millions of Americans. For example, many young couples trying to buy their first home have been priced out of the market because of inflated prices. The market now is in the process of correcting itself, and delaying that correction would only prolong the problem.
My Administration opposes these proposals. Instead, we are focused on helping a targeted group of homeowners -- those who have made responsible buying decisions and could avoid foreclosure with a little help. We've taken three key steps to help these homeowners.
First, we launched a new program that gives the Federal Housing Administration greater flexibility to offer refinancing for struggling homeowners with otherwise good credit histories. Second, we helped bring together the Hope Now Alliance, which is streamlining the process for refinancing and modifying many mortgages. Third, the Federal Government is taking regulatory steps to make the housing market more transparent and fair in the long run.
And now Congress must build on these efforts. Members need to pass legislation to reform Fannie Mae and Freddie Mac, modernize the Federal Housing Administration, and allow state housing agencies to issue tax-free bonds to help homeowners refinance their mortgages.
Congress also needs to take other steps to help our economy through this period of uncertainty. Members need to make the tax relief we passed permanent, reduce wasteful spending, and open new markets for American goods, services, and investment.
By taking these steps and avoiding bad policy decisions, we will see our economy strengthen as the year progresses. As we take decisive action, we will keep this in mind: When you are steering a car in a rough patch, one of the worst things you can do is overcorrect. That often results in losing control and can end up with the car in a ditch. Steering through a rough patch requires a steady hand on the wheel and your eyes up on the horizon. And that's exactly what we're going to do.
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Comments
Mr Bush is living in a dream world that only he can see. He created it and has no resemblence to what is going on in the real world. His push for his leaders for globalization has pre-cluded his responsibilities for taking care of America. Like Ronald Reagan, he is creating Billionaires and poor people. Try to go to work at the same pay and pour $4 per gallon of gas in your car and say everything is great.
Posted by: bronellione | March 15, 2008 10:36 AM
Wisdom from the man in the White House:
"When you are steering a car in a rough patch, one of the worst things you can do is overcorrect,'' the president said. "That often results in losing control and can end up with the car in a ditch.'
Can any serious person believe that a man in his high posaition talks this way to people?
This is like something you'd hear from your barber or bartender.
Of course, Bush should know about vehicles and going into ditches. He had a long history as a drunk and was stopped for impaired driving in Maine.
And now his driven the economy into the ditch.
Posted by: John Chuckman, Toronto, Canada | March 15, 2008 10:37 AM
Let me get this straight:
Individual homeowners: NO
Bear Stearns: YES
Guess who I'll vote for in November...
Posted by: Kenny Bunkport | March 15, 2008 10:38 AM
Bush: ' Steering through a rough patch'
=
Bush: 'You're doing a heck of a job, Brownie."
Rev. William Hayashi
Posted by: Rev. William Hayashi | March 15, 2008 10:45 AM
I'm just certain I saw Bush say in an interview a couple of weeks ago that we are NOT in a recession, more or less assuring all of us that, despite what we perceive and actually FEEL, things are just fine.
That's the same day he was startled to learn that some analysts are predicting gas will hit $4 / gallon by summer.
He's such a pathetic example of an American that it's embarrassing.
The worst of it is that he's so protected by wealth and privilege that he'll never feel any of this pain. No matter what happens, his life will move along with no change whatsoever. Disgusting.
Posted by: Emmy in Evanston | March 15, 2008 11:51 AM
What a visionary!
Posted by: MPJ | March 15, 2008 11:54 AM
[quote="Bush"]and your eyes up on the horizon[/quote]
My eyes are on the horizon, and I see Bush, and his fellow Republicans, going over a cliff. I'll be 'steering clear' of that mess.
Posted by: jimfitter | March 15, 2008 12:26 PM
we have a saying in Texas, thats bull! this country is in a 8 yr rough patch.
Posted by: Carmen/texas | March 15, 2008 1:04 PM
He's also now a little concerned about his "legacy." Maybe he should have been considering that for the last 7 years -- things for the entire world, including the US, might have been entirely different and BETTER. Too little, too late on his part.
Posted by: Emmy in Evanston | March 15, 2008 1:15 PM
"Car in a ditch."
Nah, I'm thinking more like train wreck.
Posted by: Doug "Hussein" Zook | March 15, 2008 2:13 PM
Let's take bets on how many months it will be until Mr. Bush can say the word "recession." My guess, a few more months to go, and even then, he will probably mispronounce it.
Posted by: Mike | March 15, 2008 3:10 PM
It constantly amazing me with his speech writers ability to reduce a situation to the level even he can understand.
How can a person of such high status sound like a complete dolt just rambling through a crisis?
Do the true believers out there feel proud when they hear him speak or are shivers sent up their spines knowing what a mistake he was?
Posted by: john | March 15, 2008 4:18 PM
Let's see now. We had the big push to get the government off the backs of financial institutions to help them run more freely. After cutting regulations so financial instutions could operate more freely, the financial instutions drive themselves neck deep into poo-poo. Now that many financial instutions are neck deep in poo-poo, they are crawling back to the government to bail out their rear-ends. Isn't it funny how the government is bad because of regulations and now the government is good because it is the only place the money guys can get their rear-ends saved.
Posted by: Harvey Wallbanger | March 15, 2008 5:18 PM
I think we can all agree that America has come to the realization that the emperor has no clothes.
How's that Kool-Aid tasting now?
Posted by: Radian | March 15, 2008 5:22 PM
"It constantly amazing me with his speech writers ability to reduce a situation to the level even he can understand. How can a person of such high status sound like a complete dolt just rambling through a crisis? Do the true believers out there feel proud when they hear him speak or are shivers sent up their spines knowing what a mistake he was? Posted by: john | March 15, 2008 4:18 PM"
...the answer is in the question. he sounds like a dolt because he is a dolt. and he's never done anything BUT ramble through crises. 9/11, the wars, katrina, the housing crisis.
and he has spent more time on vacation than any other president in history.
i can understand how cheney goes through the motions with bush. cheney has had his hands on the levers of power for decades, going back to the gerald ford white house.
sadly, i can also understand the people who voted for bush because he seemed like a good ol' boy, or because he indulges their need to hear soothing words around social and cultural issues.
the people who mystify me are the likes of condoleezza rice. i think she may be running out of steam. i think even she can see what a mess bush has made of things. but her years spent defending him, and with a vigor that was shocking, left me shaking my head.
what did she see in him? was it just about being near power? having power?
anyway, it's time for the congress to do what's needed to right the economy and force bush into action.
Posted by: I'd Say | March 15, 2008 5:24 PM
With Bush at the helm no wonder we are 'Steering through a rough patch'.
It's not "we" George, it's us. Your buddy's in the oil industrie sure are not going through tough times.
A President is suppose to lead his people...not use them. Worse President this country has ever had or will have I bet.
Posted by: Hit-n-Run | March 15, 2008 6:24 PM
HEY GEORGE, YOU DUMMY, YOU AND RICHARD C. ARE THE ONES THAT PUT THE COUNTRY INTO A CRASHING DIVE, YOU IDIOT, YOU CREEP, YOU ANTI-AMERICAN TERRORIST! You copped out of the Texas Nat''l Guard, didn''t go to Vietnam, didn''t defend our country in any way, picked a needless fight with a tin-horn just like your own self, you have spied on Americans illegally, you and perhaps you alone are the wost danger this country has ever faced. Why don''t you quit this job like you did the Guard, you coward.
Posted by: tucanofulano | March 15, 2008 7:08 PM
Bush: 'Steering through a rough patch'. Yeah, and the 'Great Pumpkin' is about ready to jump out and scare the heck out of all of us. The recent Fed bailout of Bear Stearns breaks with four (4) decades of Fed policy. A rough patch? Man, he really thinks we are stupid or a deja vu of his cheerleading days are returning. Either way, we're screwed. No one can convince me the Fed did not see the mortgage crisis coming down the pike. If they didn't, they fell asleep at the wheel AGAIN.
Posted by: Anonymous | March 15, 2008 7:31 PM
I want to apologize to everyone. I voted for this guy's first term. But the more I have seen of him over the years and the more he dictates our policies... the more embarrassed I am for being an American.
He is completely out of touch with reality. And I suspect, his Presidency will rank right up there with the worst periods of our nation's history.
The scary thing is, that we actually have a candidate, who wants to continue his policies.
Posted by: wolf | March 15, 2008 7:46 PM
Here's the thing;
Bear Sterns is too big to fail.
Joe Sixpack it small enough to fail.
Posted by: C.Hussein.Morris | March 15, 2008 8:54 PM
Steering through a rough patch?, or careening madly toward the complete economic, moral, political, and military meltdown of America?
That's your legacy, Mr. Bush. Enjoy your retirement.
Posted by: TheReamer | March 15, 2008 9:55 PM
Bear Stearns--5th largest bank in America. Why not bail out National City in Cleveland? Will I get stock in the private BS bank for my tax dollars bailing them out? Or, interest on their interest to be paid--if they pay any? James Cayne, the ex-CEO of Bear Stearns bought a 25+ Million dollar condo at the Plaza in NYC this month. We really must keep pumping public tax blood into the private hands of private corps who give all to private CEOs. If not tax dollars--who is behind the curtain printing the money? I think this scene would only have played out as it has with Bush in office. Bushonomics. Any other prez--a real market solution. I wonder if many buddies, or brilliant Bush banking brothers or Cheney/Bush/hand holding lobbyists are tied to BS.
Posted by: Vivian | March 15, 2008 10:44 PM
Count your blessings swampers. At least Mark Silva was kind enough to spare us from any pictures or video clips or the Commander Guy.
Posted by: Tom O | March 16, 2008 1:47 AM
I want to know about the rumor we have heard about Pres.Bush giving each house hold money.
Is this true and if so can you Share what this will entale for each family. I heard 2nd week in May checks would start being sent out. Anyone have info here that would like to share!!
Posted by: BFAmason | March 18, 2008 12:49 AM