Obama's 2nd press conference live-blog

by Frank James

9:05 pm -- The press conference is over, not having gone the full hour. Obama didn't make any news either way. There won't be any new controversies coming out of this press conference, which is the first way of measuring the success or failure of these staged events. The main benefit for Obama is that tonight gave him another prime time opportunity to show off his mastery of the issues, his confidence, and his optimistic message that the nation will get through its current difficulties. Obama should probably get a pretty high grade for his performance. He only tried to dodge one question, the one about not immediately expressing outrage at AIG and when he did answer it he did so with humor. His purpose was to clearly explain to Americans why the actions he's taken on the economy are the right ones and to insist on his agenda. It looked like he succeeded from my perspective.

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8:58 pm -- "Last question" shouts someone who must be Robert Gibbs. It's on the Middle East. "The status quo is unsustainable," Obama says. "We're going to be serious from day one" in trying to move the parties together. Cites the Irish model, that peace between sworn enemies can happen. "If you stick to it, if you are persistent, then these problems can be dealt with..." Says he will be emphasizing persistence in the coming months and years. "I'm a big believer in persistence," he said. Obama wants Americans to see everything through this prism of persistence, that changes in domestic and foreign policy won't happen quickly but they will happen. It's a big ocean liner, not a speed boat, he said.

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8:48 pm -- The Washington Times reporter asks Obama if he spent a lot of time wrestling with his stem cell question. "By the time an issue reaches my desk, it's a hard issue." Obama says strong moral guidelines are needed in human life sciences issues and abortion and that the guidelines meet the ethical test. If science shows that adult stem cells work better, great Obama said. But he doesn't want to pre-empt science. Does scientific consensus dictate what should be done? is the followup. No, says Obama. Got to look at the ethical dimension.

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8:46 pm -- Can I ask you about race? ask Ann Compton. "You may" Obama says. Has he seen any impact of his race so far in his presidency. Obama says the pride about his historic presidency lasted "about a day." He's been spending his time thinking about the economy.

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8:44 pm -- Kevin Chappelle, the first black reporter to get a question in the first two press conferences, asks "What would say to homeless children." Obama answers this softball by saying "I'm heartbroken." Then he talks about the way his administration has tried to extend the safety net. "The homeless problem was bad even when the economy was good. Part of the change I want to see in Washington and around the country" Is that homeless children and families is unacceptable in a rich country.

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8:40 pm -- Mike Allen of Politico asks if the president is reconsidering the smaller tax deduction for charitable giving. Obama says no. He explains that he's trying to reduce the inequality of the tax code by going back to the Reagan era rates. Obama says if it's really about charity, getting a smaller deduction shouldn't affect whether one gives to the homeless shelter down the street. "It's not going to cripple them. They'll still be well to do... " But it's the charities, Allen follows up. Are you confident the charities are wrong. "Yes" Obama says. Fixing the economy will do more for charities.

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8:37 pm -- Question about the foreign response to the economic crisis. Obama says he and other leaders are asking the major economic nations that they must take steps to boost global demand. Obama mentions the strength of the dollar as an indicator of confidence in the U.S. Also says that the steps that his administration is taking have raised confidence.

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8:35 pm -- Finally a question about AIG, it comes from Ed Henry of CNN. Why were you so quiet initially about AIG, Henry asks. The CNN reporter also asks about the federal debt and doesn't the president worry about it for his daughters and future generations. Obama says he does worry about it but the best way to "bend the curve" is to slow health care costs. Goes back to his talking points about why it's important to invest in the way he wants to energy, education and health care and to reduce the federal deficits. He was about to dart away from Henry when Henry followsup on AIG. Why did it take a couple of days to say something? "It took a couple of days because I like to know what I'm talking about when I speak," Obama says and gets laughs.

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8:32 pm -- Stars and Stripes' reporter ask where will the administration find cuts in the defense or veterans budgets. Obama says veterans should be held harmless. Defense contracting is another matter. "There is uniform acknowledgement that the procurement system doesn't work. Not just my opinion, that's John McCain's opinion." He's talking about programs with cost overruns of 30 percent. Obama says $40 billion of savings have already been found in defense spending.

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8:28 pm -- A question from a Univision reporter about the new border plan. Will troops be sent and is it a national emergency. Obama side steps that question saying "Let's look at what we did today" which is basically a surge of U.S. agents to the Southwest border and help to Mexico. Obama says if the additional steps don't work, his administration will do more. Nice shot of a Lincoln bust behind the president. No accident there.

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8:23 pm -- It looks like there are no TelePrompter screens on either side of the presidential podium. All the TelePrompter jokes may have gotten on some nerves over at the White House.

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8:22 pm -- Chip Reed asks about the big national debt that Obama's budget would pass onto the next generation, a criticism made by Republicans. Obama says the GOP has a short memory since they left him a $1.3 trillion debt. He says its all about economic assumptions and that the administration's fall within the range economists forecast. Then he says if healthcare and energy aren't tackled "we won't grow." Now he starts trash talking Republicans saying they should put up or shut up by producing their own budget for everyone to see.

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8:17 pm -- Jake Tapper of ABC tells the president the Democrats are not including some of his agenda in their budget, like energy reform. Would he veto such a budget without his priorities? Obama says the Democrats know what he wants on energy, education, health and halving the deficit at the end of his term. Says he didn't expect the Senate Dems to "Xerox" his agenda in their budget but he expects to see his priorities in the final product. Obama's answers are definitely shorter and punchier tonight than they were in his first press conference.

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8:13 pm -- Why are you asking for no sacrifice from the American people? asks NBC's Chuck Todd who says the economic crisis has been likened to war. Obama says his administration has put conditions on those receiving bailouts, so those folks are clearly asking for sacrifice. Then he says the American people are sacrificing in a number of ways, including furloughs to save their coworkers jobs. That was the right answer. Hard to sacrifice more than you sacrifice when you're laid off or taking pay cuts.

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8:10 pm -- First question is about the new power to regulate non-bank companies that was asked for by Geithner and Bernanke. Why should we trust you with this power given how unimpressive the federal response has been to date? asks the AP reporter. Obama says the reason why AIG created such dangers when it got into extremis was the lack of authority. He thinks Congress and the American people will give their support.

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8:06 pm -- The president is finally using a TelePrompter that is in front of him. So he's looking at the audience and not swiveling his head back to the left and right without looking directly into the main camera or the TV audience.

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8:04 pm - We're still waiting for the good part, the questions and answers.

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8:03 pm - The press conference begins. Obama starts with an "update" of where we are with the economic crisis and his solution. He's essentially hitting the administration's talking points of the last month or so, in short, the administration inherited the problems but that its responses like the economic stimulus are working. The signs are there of improvement, Obama says.

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8:00 pm -- The doors were just opened to the Cross Hall so we can see the president when he strides up the red carpet to the podium.

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We'll be live-blogging President Obama's second prime-time press conference tonight which is due to start in minutes.

At his first press conference, the president provided lengthy answers that were the equivalent of running down the clock in basketball.

It limited the number of questions the media got to ask. It worked so well for the president, it would be surprising if he didn't try it again.

Obviously, he should get a lot of questions about the economic and financial crises, specifically about the new toxic-asset plan and the AIG bonuses.

He'll likely be questioned about Treasury Secretary Tim Geithner and Federal Reserve Chair Ben Bernanke saying they want the authority to regulate non-bank institutions like AIG, especially when it comes to managing such companies when they become insolvent.

He'll also likely get questions about his proposed $3.6 trillion budget which Republicans say spends and taxes too much and which he's been defending every chance he gets.

On foreign policy, this will be the first press conference since his videotaped outreach to Iran so tonight would be a good time to ask him about that.