WASHINGTON, Jan. 4, 2008
Bush Optimistic Amid Uncertain Economy
Calls Financial Markets "Strong" Despite Slowing Economic Growth; Warns Against Tax Hike
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President Bush, with Vice President Dick Cheney, is seen at the end of a meeting with members of the President's Working Group on Financial Markets, Friday, Jan. 4, 2008, in the Roosevelt Room of the White House in Washington. (AP)
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Interactive Eye On The Economy In-depth features on U.S. markets, taxes, employment and the Federal Reserve.
Bush spoke after getting an update from his top economic advisers, who are helping him decide whether to offer a package to stimulate the U.S. economy as it weathers the housing slump, rising oil prices and an uptick in unemployment.
"This economy of ours is on a solid foundation, but we can't take economic growth for granted," Bush said. "And there are signs that will cause us to be ever more diligent and make sure that good policies come out of Washington."
Sitting around a table with his economic advisers in the Roosevelt Room, the president warned Congress against taking steps that would increase taxes. "If the foundation is strong yet indicators are mixed, the worst thing that Congress can do is raise taxes on the American people and on American businesses," Bush said.
Bush met with the advisers — his first with them as a group — the same day that the Labor Department reported that hiring practically stalled in December, driving the nation's jobless rate up to a two-year high of 5 percent. The report, which fanned fears of a recession, indicated that employment conditions are deteriorating, strained by the housing crisis and credit crunch that are sapping economic strength. On Wall Street, stocks tumbled.
"While there is some uncertainty, the report is that the financial markets are strong and solid," Bush said.
He described the nation's economic indicators as mixed.
He said there have been 52 straight months of job creation, but job growth slowed last month; core inflation is low, but U.S. consumers are paying more for gasoline and for food; and consumer spending is strong, yet the values of many U.S. homes are on the decline.
"For those of you who are paying more and are worried about your home, we understand that," Bush said. "That's why we have an aggressive policy to help creditworthy people stay in their homes."
He urged Congress to pass legislation to help homeowners refinance. Bush also called for expanding petroleum refining capacity and exploring for energy in "environmentally friendly ways."
"We have got to understand that if we are worried about gasoline prices, we ought to expand refineries here in the United States, and we ought to explore for oil and gas in environmentally friendly ways in the United States," he said.
The White House is not ready to say if Bush will offer a stimulus package — possibly coinciding with his State of the Union address on Jan. 28.
Deputy press secretary Tony Fratto said before the meeting that the president and his advisers are looking at ways to keep the economy open for foreign investments, open up markets for U.S. exporters, and fight against efforts to raise taxes. They are also looking at shorter-term threats to economic growth, including the downturn in the housing market. Tax cuts are among the things being considered for a possible stimulus package, he said.
"We're not ready to say whether we will, in fact, have something or not, at this point," Fratto said. "We need a little bit more information. There are lots of ideas out there. Obviously tax policy is an important component, but we'll see. We want to take in more data."
Vice President Dick Cheney and other White House officials joined Bush in his meeting with his working group on financial markets, an interagency panel led by Treasury Secretary Henry Paulson that meets regularly to discuss market conditions and regulatory policy. Others around the table included: Federal Reserve Chairman Ben Bernanke; Chris Cox, chairman of the Securities and Exchange Commission; Walt Lukken, acting director of the Commodity Futures Trading Commission; Ed Lazear, chairman of the president's Council of Economic Advisers; and Treasury Undersecretary Robert Steel.
On Monday in Illinois, Bush is expected to give a "status check" on the economy at the Union League Club of Chicago. The president, however, is not expected to tip his hand about what he might propose to reinforce the economy.
The December employment picture was much weaker than economists were expecting. They were forecasting the unemployment rate to bump up to 4.8 percent, not 5 percent.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
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See all 32 CommentsA man goes into a tatoo parlor, somewhat drunk, and asks the artist to tatoo his butt cheeks. He tells the artist that he''d like a tatoo of Osama Bin Laden on one cheek and a tatoo of Mohammed on the other cheek. The tatooist does his best effort, announces he''s finished and hands the drunken patron a mirror. The man lets out a wail and exclaims. "Why this is terrible work that doesn''t at all look like them". The artist defends his work and tells him its because of the patrons having to look at the work in a mirror and being inebriated and after some time of argument they both agree to abide by a disinterested 3rd parties decision. The tatooist grabs the first fellow he sees on the street, brings him inside and tells the drunk to show him the work. The drunken man pulls his pants down and bends over. The tatooist asks him what he sees and the man from the street exclaims, "Wow! Tatoos, and beautiful work. If I''''m not mistaken that one on the right cheeck looks somewhat like Osama and the one on the left looks a little like Mohammed. But the one in the middle is definately ole'' dubya!" Give em h3ll''''
He only cares about the 3% of Americans at the top who he believes matter, and for them the days are as good as they were for their heroes, the robber barons at the turn of the 20th century.
"The dogs bark but the caravan moves on ..."
Of course, he''s optimistic,,,while we all will be in soup lines,,he''ll be perched on his ranch,,with all that money he horded!!
How can they conjure up a story such as we are posting under?
How can he even speak of lowering taxes when our national debt is trillions? And when he''s planning on spending MORE!
And why should we not tax business? They pay NOTHING!
How can you be credit worthy when the cost of food and gasoline has eaten away at the capacity for you to make your house payments?
That is nuts! This man is CRAZY!
Don''t worry,,,he''s been posting nonsense aa day!!
Posted by underdogus at 05:54 PM : Jan 04, 2008
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Is he deriding the US Army by insinuating they collect all the dregs of American Society? Or is he advocating the unemployed could be suitably used as canon fodder?
I am not sure I understand the writer.
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