Bush Prods Congress On Mortgage Giants

President Calls For Legislation To Help Prop Up Fannie Mae And Freddie Mac

(CBS/AP)  President George Bush urged lawmakers on Tuesday to move quickly in putting into force legislation designed to help prop up mortgage giants Fannie Mae and Freddie Mac while declaring the U.S. financial system to be "basically sound."

He also called on the Democratic-run Congress to follow his example and lift a ban on offshore drilling to help increase domestic oil production.

"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Mr. Bush told a White House news conference - his first since late April.

CBS News correspondent Mark Knoller reports it was the president's 43rd full-length, solo, White House news conference.

It was an attempt to quiet fears about the economy, reports CBS News correspondent Bill Plante. It's no coincidence that it came on the same day Federal Reserve Chairman Ben Bernanke was testifying before the Senate banking committee. The administration is very concerned about what has happened, particularly about the public perception.

President Bush said the two troubled Freddie Mac and Fannie Mae mortgage companies play a central role in the U.S. housing-finance system and that government action to help them were not bailouts, since the two would remain shareholder-owned companies.

"I don't think the government ought to be involved in bailing out companies," the president said.

Amid soaring fuel prices, the toughest real estate market in decades, falling home prices and financing that's harder to come by, Mr. Bush said: "It's been a difficult time for many American families." But he also said that the nation's economy continues to grow, if slowly.

The president said that despite the woes of Fannie Mae and Freddie Mac and the recent government takeover of California bank IndyMac, U.S. depositors should not worry because their deposits are insured by the government up to $100,000.

"If you're a depositor, you're protected by the federal government," Mr. Bush said.

The Bush administration and the Federal Reserve announced an emergency rescue plan Sunday to bolster Fannie Mae and Freddie Mac, which hold or guarantee more than $5 trillion in mortgages - almost half of the nation's total.

The plan would temporarily increase a long-standing Treasury line of credit that could be provided to either company. Treasury also said it would, if necessary, buy stock in the companies to make sure they have enough money to operate.

The Fed also announced that it would allow Fannie and Freddie to get loans directly from the Fed - a privilege previously granted only to commercial banks until this March, when the Fed extended the borrowing to investment banks to deal with the collapse of Bear Stearns.

At the same time, a housing package was heading toward final congressional passage. It would modernize the Federal Housing Administration and create a new regulator and tighter controls for Fannie Mae and Freddie Mac.

It's this legislation that Mr. Bush urged Congress to pass as soon as possible.

Congress could move as early as this week on the housing legislation to send it to Bush. First, though, House and Senate leaders must strike a deal in consultation with Treasury Secretary Henry Paulson to resolve key differences so Bush, who has threatened to veto the measure, will sign it.

"I think the system basically is sound, I truly do," President Bush said. "I understand there's a lot of nervousness. The economy is growing. Productivity is high. Trade's up. People are working - it's not as good as we'd like. And to the extent that we'll find weakness, we'll move."

The president defended his insistence that the U.S. economy was not in a recession, even though many economists believe it is.

He said the traditional definition of a recession - two quarters in a row of negative growth - had not been met.

"I'm not an economist, but I do believe we're growing," he said. "I'm an optimist. I believe there's a lot of positive things for the economy."

He acknowledged, however, that "it's not growing as it should."

On Capitol Hill, Bernanke warned that inflation seemed likely to move even higher and economic growth would be "appreciably below its trend rate."

"In general, healthy economic growth depends on well-functioning financial markets," Bernanke said. "Consequently, helping the financial markets to return to more normal functioning will continue to be a top priority," he said.

Mr. Bush acknowledged it could take years before opening the Continental Shelf to oil drilling would result in increased U.S. production. But, he said, at least it would put the nation on the right track toward reducing its reliance on imported oil.

"There is no short term solution," Bush said. "The president doesn't have a magic wand. You can't just say, 'Low gas."

It would take a long time for the drilling to have an impact, CBS News correspondent Bob Schieffer reports, and there's no chance that the Congress is going to do it. The Democratic rank-and-file has been a little more receptive to resuming offshore drilling, but the Democratic leaders in Congress are just flat-out against it.

Asked about his comment earlier this year that he hadn't heard of $4 gasoline, Bush said: "I've heard of it now."

[sgtrds10-4]

Bush has been the opposite of having the Midas touch. Instead of everything he touches turning to gold, it all turns to cr*ap. Why should anyone listen to what this loser wants on anything when he''s shown himself to be the most ignorant and incompetent creature ever to sit in the Oval office, on either side of the desk.

[singingrick]

Translation:


"Somebody please clean up the mess I''ve made."



lol!

[ubrew12]

I know, lets cut taxes!

Honestly, if you were the Dem Congress, why would you act now and give this oil-bought catastrophy what he wants? Wait for a Dem president and then act. Oil prices have gone up ever since Bush cut taxes and Greenspan lowered interest rates to create their ''house of cards'' economic recovery in 2001-2004. Why? The smart money understood that the American economy couldn''t handle the resulting trillions of dollars of extra debt. So, they dumped dollars and bought euro and oil, BOTH of which have gone up in response. Now, Bush is blaming Congress for this? And holding up his primary victims, the American people, as their victims? Amazing!

[petro49l]

The Saudis pay graft to George W. Bush for his silence and support for the $150 a barrel price on oil. Politicians are often indicted for accepting and paying bribes. PA State Politicians Jeff Habay and Mike Veon face prison sentences for campaign corruption. Prosecution for political favors should reach the White House. How Richard Nixon avoided federal prison is another story.

[singingrick]

b48151


Are you a moron? That''s a rhetorical question. If the ban was lifted today, we wouldn''t see the first drop of oil for 5 to 7 years. Even then, it would not be enough to increase world supply significantly and it wouldn''t lower the price.

Bushco has had 7 years to do this. Why did he wait till oil reached $140 a barrel? Answer: Because high oil prices make him and his friends a lot of $$money$$.

[vranger]

More typical moronic Bush bashing below. The White House had nothing to do with either a global increase in the demand for crude oil, or a move towards poor lending practices by banks.

Bowever, idiots like those below, who have no clue about what causes what, must have a convenient target ... it would be tragic if they actually had to pay attention or, heaven forbid, THINK.

In fact, there is very little that the White House can act upon with unilateral control, and 99% of the things that effect the economy are not in any way under the direct control of any Executive Branch division.

Congress has MUCH more to do with ebbs and flows in the economy, and we have benn stuck with the self-admitted "do nothing Democrat run Congress" for years now.

You know, nothing can stop you guys from ignorance and mis-targeting, but it doesn''t do anyone any good to mis-target, it just lets the real perpetrators off the hook.

[hungry1968]

I''ll go you one further: The Republicans view taxes as evil, and want to privatize all government functions.

Now, are they really eliminating taxes?

Posted by ibsteve2u at 11:14 AM : Jul 15, 2008





This is one of the BIGGEST scams of all time - all fueled at American tax payer expense.

You have a federal government employee doing a job, for $40,000 a year with benefits. They REPLACE that employee with a contract to a private company to do the EXACT SAME job for $80,000, and then tout "smaller government" as though it''s beneficial to our country.

Then the real kick in the teeth, comes when the "contractor" outsources the job to someone in India, that can''t do the job NEARLY as efficiently as an American could, OR the American contractor hires an illegal alien from Mexico, and pays them slave wages, under the table, so they don''t have to pay taxes.

And they tout this as "good" for America.

[blitzder]

"These people in Afghanistan, have no disregard for human life". Bush today.

Incompetent,ignorant and out of it. What a mess of a man and the Presidency!?.

[hungry1968]

DRILL HERE DRILL NOW PAY LESS...got that you pathetic libs....over 70% of the country wants this..this will be hung around your necks in Nov.

Posted by b48151 at 11:17 AM : Jul 15, 2008






You won''t "pay less" because of a moratorium on drilling. The states will sue to PREVENT drilling, no matter what Bush or the Congress does. Florida, California, and the Carolinas are just 4 states that are opposed to it.

Nice try at perpetuating Bush''s BS though.

[sgtrds10-4]

The idea that we can drill ourselves into lower gas prices is ridiculous. The refineries in America are running at full capacity (except of course when one of the oil companies create a "problem" at one to drive prices up at the pump) so more oil supply is not the problem, increasing refineries would be a good first step and show more results more quickly then drilling. Besides even if we do drill the oil companies have and continue to refuse to legally pledge they won''t just sell the oil to the Chinese for bigger profits.

[frootloop47]

"I readily concede it won''t produce a barrel of oil tomorrow, but it will reverse the psychology," Mr. Bush told a White House news conference.
---------------
Yeah, more Republican smoke and mirrors. DISGUSTING!

[oscarez]

George Bush and D!ck Cheney Dumb and Dumber. Lets vote for John McCain for more of the same except it will be Old and Dumber.

[hungry1968]

Congress has MUCH more to do with ebbs and flows in the economy, and we have benn stuck with the self-admitted "do nothing Democrat run Congress" for years now.

You know, nothing can stop you guys from ignorance and mis-targeting, but it doesn''''t do anyone any good to mis-target, it just lets the real perpetrators off the hook.


Posted by vranger at 11:24 AM : Jul 15, 2008






Funny how YOU blame the "democratic led congress" that hurt us "for years now", (even though it''s only been 1-1/2 years), yet you AMAZINGLY seem to exonerate the republicans that had the white house AND BOTH houses of congress for the 6 years previous.

And then you spout "mis-targeting"?

LOL!!! Laughable!!!!

[dchu76]

So companies get public money for bailouts so shouldnt thier profits be part of the public as well.

[walt1944-2009]

The Great Emperor Bush II called on Congress to "prop up Fannie Mae and Freedie Mac and allow oil drilling anywhere and everywhere".

Naturally, the Great Emperor could care less about the average "whinner" living in the "imaginery world" of "Doctor" Phil Gramm, but is thinking of the enormous profits that could be made in the banking industry and especially with BIG OIL, drilling holes everywhere and making the USSA look like the surface of Mars (The Great Emperor could not get to Mars, so let''s bring Mars HERE!) and selling any oil found, NOT to the USSA, but to India, Japan, and China who will pay in HARD currency, not WORTHLESS DOLLARS!!!

The Great Emperor Bush II FULLY expects the Whimpo-cratic Congress to, ONCE AGAIN, CAVE on his demands, as the Whimpo-crats have always done in the past.

So expect to see an oil rig arriving in your community soon!!!!!

SIG HEIL, BUSH!!!!
sig heil, DEFINITELY MORE OF THE SAME, McCain!!!!!

[simplemind2]

Hey - George, yep, you George, instead of trying to side-step the real issue here - what about stop wasting the tax-payers''
hard-earned 3 Billion dollars PER week in IRAQ?
Bring our brave troops home now.
You - sir - are the biggest spender in the history of the good old US of A.
Just imaging instead of wasting 3 Billion dollars PER week in IRAQ, used that 3 Billion dollars PER week right here as WEEKLY
Economics Stimulus Payment - I''m willing to bet we won''t see the sinking Economy any more in a heart beat!

[bobnjersey]

[President George Bush urged lawmakers on Tuesday to move quickly in putting into force legislation designed to help prop up mortgage giants Fannie Mae and Freddie Mac while declaring the U.S. financial system to be "basically sound." ]

basically sound? what''s this mean?

doesn''t he have some brush to clear on the ranch? how about a vacation ... a long one ... seems long overdue ... say five months or so.

[oscarez]

"Amid soaring fuel prices, the toughest real estate market in decades, falling home prices and financing that''s harder to come by, Mr. Bush said: "It''s been a difficult time for many American families but one bright spot is that we rich folk have been getting richer."

[mcvet]

Wouldn''t it have been WONDERFUL if this slimy piece of trash had spoken up when McCain''s Co-Chair was creating the Enron Loophole?? How about when all those Regulations were being removed that would have PREVENTED this?? But it doesn''t end there.. OH NO! This LOSER and his PARTY just HAD to change the Bankruptcy Laws which restrained Lenders from lending to people who couldn''t afford it. Gosh!! Now who listens to these people or their Party anymore.... those that do have some SERIOUS mental problems.

[nolalou]

I have to laugh every time I hear someone whine that Democrats will tax & spend us to death. This administration sure got the spending part down, but instead of taxing, they just borrow the money to the tune of trillions of dollars (Yes, Trillions with a "T"), most of which we owe to communist China! Funny, how we still have an embargo against Cuba, to punish those communist heathens, but hey, it''s okay to trade with China, heck we''ll even fund our wars with their money! Guess who gets stuck with the tab? U.S Tax payers, and the next generation! Some legacy to leave our children!

[singingrick]

The banking crisis was caused by Republican deregulation of the banking system. Sky high oil has been caused by Repubilcan deregulation of the futures markets (google Enron loophole), the invasion of Iraq, record Republican deficits that lowered the value of the dollar, and backasswards Republican energy policies.

[anecdote1]

How about we stop the $10 billion a month war?

[armydog2]

Bailing out freddie mac and fannie mae is going to cost us the taxpayer,Billions in Iraq is costing us the taxpayer, high gas prices because of speculation and the ENRON LOOPHOLE is killing us the taxpayer.To solve the problem of high oil prices that loophole has to go and it won''t because that is bush''s baby.

[ioweign]

"I don''t think the government ought to be involved in bailing out companies," the president said."

###

Like Arlington, Texas and your Texas Rangers - Right...

[ubrew12]

ozilot said: "low supply, high demand, higher prices, and record profits...see no problem at all! "
Prove that supply is low. Statistics I''ve seen suggest we''re in a bit of a glut for this time of year.

[singingrick]

The banking crisis was caused by Republican deregulation of the banking industry. Sky high oil has been caused by Repubilcan deregulation of the futures markets (google Enron loophole), the invasion of Iraq, record Republican deficits that lowered the value of the dollar, and backasswards Republican energy policies.

[darnedsocks]

YOU KNOW THE ILLEGAL IMMIGRANTS ALL WORK TOGETHER TO HELP CAUSE THIS PROBLEM....COUSIN JUAN WORKS AT THE MORTGAGE COMPANY AND APPROVED COUSIN ALICIO''S $595,000 MORTGAGE, WHO REALLY DOESN''T MAKE 120K YEAR, BUT ONLY MAKES 50k YEAR...ONLY BECAUSE COUSINS 3, 4, & 5 ALL CONTRIBUTE AND PUT THEIR MONEY TOGETHER. THIS WHOLE MORTGAGE DEBACLE WOULDN''T HAVE TAKEN PLACE IF IT WEREN''T FOR THE ILLEGALS NETWORKING AND USING OUR SYSTEM. NOW AMERICAN CITIZENS ARE LEFT HOLDING THE BAG!

[fixhist]

Oh! My Gash!
Such a bold step from wrong Path,to right Path?
He must have asked directions from a lunatic hanging upside down from a tree and surely at his own steam,by wish or prerogative :)
What can you say about,what to expect from Lunatics.
If some one Realy,Realy and truely wants to know,what a Lunatic is thinking,I can''t answer to what makes some people LUNATIC & not others, My proposed Referal would be Ardeshar Cowasji.
Probably he can give couple of visiting Lecture on foras like usually held in Places Like, Heritage Foundation, Nixon center (Introductory contribution by Conrad Black)

By the way, People who wouldn''t understand What Media Mugal or a Mughal King Bahadur Shah Zafar is?
Try to find through Google,mostlikely you cant get one or other,as search results are spread out your PC IP address, so good Luck.

[Gary Kempf]

"I don''t think the government ought to be involved in bailing out companies," the president said

George what color is the sky in your world??? Have seen Alice? Since you seem to travel in some unknown wonderland. You have had Bernanke doing just that for how many weeks and how many millions of dollars.....

Wait, your statement is your deniability....

[dchu76]

John Mccain finished 894th of 899 in his class, 5th from the bottom. Has said that he knows nothing about economies. Keeps on talking about non existent countries, dont know the leaders from some of the major contries out there. I say if you are rich and white, elect mccain just for the hillarity that will ensue for the next 4 years. You can be sure that people like Jon stewart are hopping for a mccain victory.

[ianlou]

Bush Economics: Socialism for Big Business, Capitalism for the Middle Class.

[sgtrds10-4]

"I readily concede it won''''t produce a barrel of oil tomorrow, but it will reverse the psychology," Mr. Bush told a White House news conference.

It wont produce a single barrel for at least 10 years..everbody knows this but do think looser would concede that concept?

Posted by jocro12 at 11:51 AM : Jul 15, 2008

The best thing Bush could do for America''s "psychology" would be to quit now.

[underdogus06]

WAR with Iran closer then ever: Israel and US between a rock and a hard place ( US BANKRUPTCY IMMINENT)

[ioweign]

The banking crisis was caused by Bill Clinton and the liberals. I have no idea how they did it but they did it alright, they are very clever in their America destroying missions.

Posted by GOP_forever at 11:46 AM : Jul 15, 2008

Clueless here fails to see that the GOP controlled Congress from 1994 to 2006. Veto proof legislation at its finest...

[sgtrds10-4]

I agree the war has reduced confidence in the economy, thereby affecting the housing and stockmarket, however 2003 through 2006 were the best years america has seen in decades

Posted by yurpallid at 11:55 AM : Jul 15, 2008

ROTFLMFAO!!!!! They were a joke compared to the economy of the 1990''s!

[hungry1968]

The best thing Bush could do for America''''s "psychology" would be to quit now.

Posted by SgtRDS10-4 at 11:52 AM : Jul 15, 2008





When ancient Japanese samurai used to fail at a task, it was considered a disgrace, and there was only ONE honorable way out.......

[ubrew12]

My basic problem with his offshore oil move is that he''s done nothing but pay lip service to alternative energy. Drilling for oil wont solve Global Warming, for example. Even fellow oil man T Boone Pickens is putting up wind farms and recommending existing stock of natural gas as a solution to foreign oil dependence. Pickens is pretty smart: he sees what''s going on. Unlike Bush, I dont think he''s ruined any companies and wasn''t born with a silver spoon.

Wind is the lowest cost energy source out there. Bush will give away billions in OUR oil resources to oil companies, but wont spend a dime on these alternates.

ozilot: oil prices are set on a open market that includes dollars, euros, etc. The dollars fall and continued saber-rattling in the MidEast (esp about Iran) are behind the latest oil runup. Bush is holding us hostage to USE this crisis he helped create to give offshore oil to his buddies, just as they''ve gotten no-bid contracts to exploit Iraqi oil that other Americans have died for. And YOU are helping him.

[mcshame]

Just saw that there''s a big list of banks on the verge of failure.

[frootloop47]

... and about that "Enron Loophole" :
In 2000, with the Republicans in charge of Congress and Gramm chairing the Senate Banking Committee, the exemption on electronic trading was approved without a Senate hearing.
Posted by mascarponi at 11:53 AM : Jul 15, 2008
----------------------------------
It is also interesting to note the Senator Gramm''s wife just happens to be in the commodies/futures business. Ref: Wiki

[hungry1968]

WAR with Iran closer then ever: Israel and US between a rock and a hard place ( US BANKRUPTCY IMMINENT)

Posted by underdogus06 at 11:53 AM : Jul 15, 2008





I''m sure our "friends" in Israel will help us out - right?

[sgtrds10-4]

When ancient Japanese samurai used to fail at a task, it was considered a disgrace, and there was only ONE honorable way out.......

Posted by hungry1968 at 11:57 AM : Jul 15, 2008

Sadly for us Bush has no honor. None whatsoever.

[hungry1968]

I agree the war has reduced confidence in the economy, thereby affecting the housing and stockmarket, however 2003 through 2006 were the best years america has seen in decades

Posted by yurpallid at 11:55 AM : Jul 15, 2008






The housing market has been "overvalued" by as much as 40% by some estimates!!!

Unemployment numbers were also "altered" for the first time during that period. Prior to 2004, unemployment numbers DID NOT calculate "part time" employment. Bush''s Dept of Labor changed that, so that ANYONE working over 30 hours a week, counted as "employed". Altering the numbers used to keep track of the economy, doesn''t make the economy anymore sound - it just makes the numbers altered.

[hungry1968]

Sadly for us Bush has no honor. None whatsoever.

Posted by SgtRDS10-4 at 11:59 AM : Jul 15, 2008





True.

"Pretzel, Mr. Bush?"

[dchu76]

I''''m sure our "friends" in Israel will help us out - right?
--------------------------------------------------------------------------------

posted by hungry1968 at 11:59 AM : Jul 15, 2008

Oh i am sure they will help us, they can start by paying america 140 billion they owe us. To do the math that is about 30$k per american.

[Michael Arnold]

Washington will bailout its banking friends, but not its citizens. Citizens in general. are at the very bottom of the barrel.

[dchu76]

Top Israeli officials have gone to Washington DC to ask for special financial aid, to help the country deal with the vicious economic downturn.

Israel is not saying how much money it is looking for, but the domestic media speculate that it could be as much as $24bn, of which $4bn would be military aid and $20bn grant.

About $5.9bn in grants and aid are routinely awarded each year.

Loan guarantees also would allow Israel to borrow at rock-bottom rates.

[singingrick]

The banking crisis was caused by Republican deregulation of the banking industry. Sky high oil has been caused by Repubilcan deregulation of the futures markets (google Enron loophole), the invasion of Iraq, record Republican deficits that lowered the value of the dollar, and backasswards Republican energy policies.

[shoebox119]

"If you''re a depositor, you''re protected by the federal government," Bush said.

__________


Is this the same federal government that is currently running record annual deficits under your "decider" ship and is teetering under a 9.5 trillion-dollar debt?

Wow, that''s comforting to know.

[ianlou]

With a Whitehouse full of Bible College Graduates I hope they are doing all that their education has trained them to do. Praying.

[dchu76]

who is the bigger enemy to the U.S., Bush and cheney, Bin Laden, or Israel?
tough question isn''''t it.
--------------------------------------------------------------------------------
Posted by getoffmine at 12:08 PM : Jul 15, 2008

Well isreal and bin landen is the same thing, considering most of the annimosity from the arabs is because of our one sided view or the arab world and our aid of isreal.