Bush Tries To Reassure Public On Economy

President Acknowledges "Difficult Time" But Says Rebate Checks Will Provide "Booster Shot"

(CBS/AP)  President Bush said Friday that "it's clear our economy has slowed" and tried to reassure an anxious public that the long-term outlook is good.

"Losing a job is painful and I know Americans are concerned about our economy. So am I," Mr. Bush said during a hastily arranged White House appearance on the heels of a gloomy government economic report.

"I know this is a difficult time for our economy," he said. "But we recognized the problem early and we provided the economy with a booster shot."

Congress passed and Mr. Bush signed a stimulus package that will send tax rebates to many families and businesses. But some fear it will come too late - or that people will use the money to save or pay off debt, rather than go on a spending spree that will boost the economy.

Mr. Bush gently urged people to do the latter. "When the money reaches the American people, we expect it to boost consumer spending," he said.

Earlier, the president's top economic adviser said that the nation's economic growth could dip into negative territory for the current quarter. That tracks with the assessments of many outside experts but is the most pessimistic word to come so far from the White House.

"We don't really know whether it will be negative or not," Edward Lazear, chairman of the White House Council of Economic Advisers, told reporters at the White House. "We have definitely downgraded our forecast for this quarter."

The flurry of activity came as the White House was eager to put a good face on the economic picture, clouded by the release earlier Friday of a report showing the economy lost 63,000 jobs last month, the most in five years.

The highly anticipated report came minutes after the Federal Reserve announced it would take fresh steps to ease credit troubles, including boosting the amount of money it will auction to banks. The move stoked worries that the employment reading would be weaker than expected.

The Fed said it will increase the size of its March 10 and 24 auctions to banks to $50 billion each. The auctions had been slated for $30 billion each and central bank officials said they plan to even bigger amounts for future auctions if need be. Also, the Fed said that it will, starting Friday, begin a series of repurchase transactions expected to reach $100 billion.

The White House says it is "obviously disappointed to see a negative reading on the payroll report," reports CBS News White House correspondent Peter Maer.

Deputy Press Secretary Tony Fratto called it another sign "that this quarter is going to be a difficult quarter for the U.S.economy."

Fratto again refused to say the economy has already entered a recession. He added, "I don't know that there's ever been a recession with a 4.8 percent unemployment rate," reports Maer.

Dow Jones industrial average futures fell 145, or 1.20 percent, to 11,925. Standard & Poor's 500 index futures fell 18.40, or 1.41 percent, to 1,289.50. Nasdaq 100 index futures fell 12.00, or 0.70 percent, to 1,702.25.

Bond prices jumped. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.52 percent from 3.59 percent late Thursday.

The dollar hit a fresh record low against the euro following release of the payroll numbers, while gold prices rose.

Light, sweet crude fell 32 cents to $105.15 per barrel in premarket electronic trading on New York Mercantile Exchange after the jobs report. A slowing economy could dampen demand for oil.

Wall Street had been eager for a read on the jobs picture. While unemployment remains low by historical standards, the increase in unemployment stirred concern among investors worried that it will result in a consumer slowdown. The well-being of the consumer, whose spending accounts for more than two-thirds of economic activity, is key to investors' hopes of avoiding more economic pain amid the ongoing pullback in home values and credit troubles.

The employment figures weren't welcome news a day after concerns about home foreclosures and credit woes rippled through Wall Street. The Dow lost nearly 215 points Thursday, while the broader S&P 500 index fell 2.20 percent.

Overseas, Japan's Nikkei stock average closed down 3.27 percent after Wall Street's decline. In afternoon trading, Britain's FTSE 100 fell 0.93 percent, Germany's DAX index lost 1.53 percent, and France's CAC-40 slid 1.91 percent.

[gce65]

The Dow has lost roughly 15% of it''s value in the last 5 months. And it''s not over.....

I''m going to start telling my creditors that I''m choosing not to pay them this month because I''m doing what the govt does: DEFICIT SPENDING. What''s the famously idiotic Diick Cheney quote: "Deficits don''t matter; Reagan proved that." Ha!

[forthepeopl1]

Carlyle Capital had leveraged $670 million in equity 32 times to finance a $21.7 billion portfolio of highly rated mortgage-backed securities issued by U.S. housing agencies Freddie Mac and Fannie Mae.

The company, to establish financing for the deals, entered into repurchase agreements with banks in which it would post the mortgage securities as collateral in exchange for cash.

If the value of the security held as collateral falls, the lender has the right to ask for more collateral -- a "margin call" -- to secure the loan.

If the borrower does not meet the margin call by putting up more collateral, the lender may sell the security.

so all the banks used the inflated houseing prices to get large sums of cash, our mortages that they lied in the first place saying a home is valued at 400000 or 500000 and it was really worth 200000, then go to investers and say look we have so much equity that if they go bad we still make billions..OOPS THE VALUES HAVE COME DOWN TO WHAT THE HOMES ARE REALLY WORTH, OOPS, WHAT DO WE DO?????? LETS JUST RIGHT IT OFF...NO MATTER THE GOVERNEMNT WONT LET US GO DOWN..

GREAT JOB..CONGRESS HOW ABOUT SAVEING US AMERICANS INSTEAD OF THE ONES THAT LIED AND CHEATED US...

[bm6005]

It is "reassuring" that the current recession does not hurt Bush and all his wealthy friends.
The pols in Washington are so out of touch with reality as they sit in their ivory towers. They have no idea what it is like for the majority of Americans.
All the Washington old-timers should be voted out of office......
Posted by tibu987

And the majority of them are LAWYERS! Any question as to why they''re so sleezy, self-serving,
thieving, dealing scum.

[bm6005]

Vote out ALL incumbents in November!!!

[mcvet]

SOME CLAIM THAT WE WENT TO IRAQ FOR THE OIL!
BUT IT SEEMS THAT ISN''''T SO!
DID SOMEONE FORGET A SMALL DETAIL?
OOOOPS!


--------------------------------------------------------------------------------

Posted by prairiefox1 at 04:19 PM : Mar 09, 2008
+ report abuse

Yeah now the Senate, Democrats and REAL Republican''s are starting to ask questions about that Oil... the Oil that was supposed to pay us back in Iraq! Oh well, guess we can add another lie to the list for the LIAR in Chief. Sieg Heil Bush

[dwt8]

what''s taking them so long on the stimulus package.
I already planning on how I''m going to spend it.

I need to put gas in my car.

[tibu987]

It is "reassuring" that the current recession does not hurt Bush and all his wealthy friends.
The pols in Washington are so out of touch with reality as they sit in their ivory towers. They have no idea what it is like for the majority of Americans.
All the Washington old-timers should be voted out of office as they are responsible for dragging this country down domestically and internationally, for the last 40 years.
We need young, idealistic people to govern us.
Insist on term limits and then vote for them.
This 72 year old will be voting for Obama.

[prairiefox1]

SOME CLAIM THAT WE WENT TO IRAQ FOR THE OIL!
BUT IT SEEMS THAT ISN''T SO!
DID SOMEONE FORGET A SMALL DETAIL?
OOOOPS!

[prairiefox1]

Encourage you to read the recent statement by Barack Hussein Obama "ADMITTING" that Al-Qaida WAS IN FACT IN IRAQ?....well, well, well, if we Cut-and -run from Iraq, who do you think will fill-in the vacuum? Iranian Revolutionary Guards? Hezbolla? Al Qaida?....and excuse me MCVet isn''''t cut-and-run another name for SURRENDER?

Posted by dumbshun at 01:22 PM : Mar 08, 2008

Going to war with Iraq was a huge mistake. There was no Al-Qaida when Saddam was in power.
Sunni secular Saddam opposed the religous fanatics in Iran, our real enemy.
Now, Iran and Iraq are friends.
The US is rebuilding Iraq, costing us Trillions and we get nothing in return.
The real Al Qaida and the Taliban are plotting against is in Afganistan.
If we stay in iraq for 100 years it would cost us 80 Trillion.



--------------------------------------------------------------------------------

Posted by sueann702
((((((((((((((((((((((
JUST BECAUSE CHOCOLATE SAYS SO DOESN''T MEAN IT IS SO!

[DiMcSwan]

Please sign the petition to have Florida and Michigan''s votes counted as they stand. Everyone''s vote should count regardless of your party affiliation or for whom your vote was cast. This is America.

It only takes a minute of your time. Anyone can sign the petition. Thank you.

http://www.ipetitions.com/petition/seatourdelegates/

[slim1h2o]

Posted by MCVet at 10:27 AM : Mar 09, 20

Exactly!!!

[cattlekate]

McSame, is proposing to continue the same tired old policies. Now after decades and decades of these promises any fool should be able to figure out they do NOT work.

McSAME! I love it! Thanks, skyk!

Has anyone here checked McSAME''s web page? Could someone please tell me how his policies are any different from Bush''s?

[skyk-2009]

How do you take a BALANCED BUDGET and a SURPLUS and turn it into what we see before us today??? Just how INCOMPETENT do you have to be to take over a POLICY and an ECONOMIC PLAN that was working VERY well indeed and revert back to the failed policies of the past? It wouldn''t be so bad but the Imposter to be, McSame, is proposing to continue the same tired old policies. Now after decades and decades of these promises any fool should be able to figure out they do NOT work. Well at least they aren''t out there saying they want a Balanced Budget Amendment!! That would be an insult on top of this insult!!

[mcvet]

Encourage you to read the recent statement by Barack Hussein Obama "ADMITTING" that Al-Qaida WAS IN FACT IN IRAQ?....well, well, well, if we Cut-and -run from Iraq, who do you think will fill-in the vacuum? Iranian Revolutionary Guards? Hezbolla? Al Qaida?....and excuse me MCVet isn''''t cut-and-run another name for SURRENDER?

Posted by dumbshun at 01:22 PM : Mar 08, 2008

So some who have been against our invasion from day ONE decide to become part of the Group that Attacked us. This means what? For some reason you people can''t figure out that IRAQ was NOT involved with the Attack nor were they pals with Bin Laden. We KNOW who attacked us and they are NOT in Iraq!! I repeat myself, WE invaded that nation, WE freed these people, now it''s time to get back to the fight with the REAL Enemy. Time to do what we should have been doing BEFORE the 935 lies and the INCOMPETENCE of the Bush Administration. Sieg Heil Bush

[brianbwb-2009]

"Mr. Bush gently urged people to do the latter. "When the money reaches the American people, we expect it to boost consumer spending," he said.

Sorry, you lying cowardly, corrupt mass murderer, Americans who still have jobs will use it to pay off debts. You obviously don''t bother to look out the window at real life, do you? Even if a few do go on a spending spree, the maximun of $1,000 dollars will buy at most a new Japanese HDMI TV, or make a mortgage payment, then what''cha gonna do?

Idiot.

[sueann702]

The Terrorists have won if you think about it.
Now it''s ok to spy on Americans, detain them in secret prisons without a trial, torture, end to habeus corpus, the right to assemble or have a revolution is gone, the president can now have absolute power without congress approval thru martial law. Bush is now trying to cripple our economy to force us into accepting the Amero to compete with the Euro.
Noth America Union and Fema Camps are coming next.
If you vote for McCain you are voting for another Bush.

[sueann702]

Encourage you to read the recent statement by Barack Hussein Obama "ADMITTING" that Al-Qaida WAS IN FACT IN IRAQ?....well, well, well, if we Cut-and -run from Iraq, who do you think will fill-in the vacuum? Iranian Revolutionary Guards? Hezbolla? Al Qaida?....and excuse me MCVet isn''t cut-and-run another name for SURRENDER?

Posted by dumbshun at 01:22 PM : Mar 08, 2008

Going to war with Iraq was a huge mistake. There was no Al-Qaida when Saddam was in power.
Sunni secular Saddam opposed the religous fanatics in Iran, our real enemy.
Now, Iran and Iraq are friends.
The US is rebuilding Iraq, costing us Trillions and we get nothing in return.
The real Al Qaida and the Taliban are plotting against is in Afganistan.
If we stay in iraq for 100 years it would cost us 80 Trillion.

[neobrian-2009]

Extra Extra Read All About It
jwind (bag) gets brain transplant,..he can now walk,chew gum and Praise his King All at once !
the operation took three days,..they had to remove 37 lbs. of Shrub feces to find his old brain,the pea size node was removed,then the donor brain( a six yr.old tragically killed) was then transplanted,..His family (jwind`s) could Only hope that his new brain does not get diseased like his old one.But,old habits are hard to break and he started babbling about King Shrub soon after recovery.Oh Well,..He just repeats his mistakes,.just like All GOP followers,..He has No Ideas,Just a Brain-dead Bushbot ! Pathetic!

[trillion1]

Kind of like Jack the Ripper reassuring somebody about surgery.

[mcv57]

Posted by tucanofulano

Haven''t you realized by now, that the BinLaden is just an escape-coat (remember Oswald). Bin Laden is just a world government stooge.