Bush: Massive Government Bailout Not the Answer
The president says the economy will rebound and that tampering could cause harm.
March 14, 2008— -- NEW YORK (AP) -- Trying to calm jitters about the economy, President Bush conceded on Friday that the country "obviously is going through a tough time" but expressed confidence about a rebound.
In a speech to The Economic Club of New York, Bush said this was not the first time the economy has been rattled and that he is certain that it will ride out its troubles. "These are uncertain times," he said.
The president spoke as evidence of an ailing economy piled up. The dollar fell, oil and gold hit record highs, the economy is shedding jobs, retail sales saw a big drop and the effects of a severe credit squeeze linger. Economic worries have replaced the Iraq war as the No. 1 concern of voters in this presidential election year.
Bush acknowledged that prices are up at the gas pump and grocery stores and housing values are down -- leading to worries among everyday "hardworking Americans." But he said low unemployment and strong productivity are proof of the economy's fundamental strength and resilience.
"Every time, this economy has bounced back better and stronger than before," Bush said.
The president also praised the work of the Federal Reserve. After cutting interest rates several times, the Fed said Friday it has voted to endorse an arrangement to bolster troubled Bear Stearns Cos. and stands ready to provide add liquidity to a combat a serious credit crisis.
"It was strong action by the Fed and they did so because some financial institutions that borrowed money to buy securities in the housing industry must now repair their balance sheets before they can make further loans," the president said.
"Today's events are fast moving, but the chairman of the Federal Reserve and the secretary of the treasury are on top of them and will take the appropriate steps to promote stability in our markets," Bush assured his audience.
The president chose American's financial center as the backdrop -- and the titans of finance and commerce as the audience -- for his attempts to calm nerves from Wall Street to Main Street.
