Bush: US Is on Top of Financial Crisis

WASHINGTON — President Bush, trying to calm turmoil in financial markets, said Monday that his administration is "on top of the situation" in dealing with the slumping economy.

"One thing is for certain, we're in challenging times," the president said after meeting with Treasury Secretary Henry Paulson and other senior economic advisers. "But another thing is for certain: We've taken strong, decisive action."

The president commended the Federal Reserve for its urgent actions over the weekend. He praised Paulson for working with the Fed and showing "the country and the world that the United States is on top of the situation."

Bush spoke on a day of turmoil and plunging prices on global financial markets. Oil prices hit a record in Asian trading, U.S. stock index futures fell sharply and the dollar hit record lows.

The White House moved quickly to raise Bush's public profile Monday, and he continued to send an upbeat message, even in acknowledging a downturn that keeps roiling the economy and the country's people as well.

Bush said "our financial institutions are strong" and "our capital markets are functioning efficiently and effectively."

Still, Bush said his administration is monitoring economic developments closely.

"When need be, we'll act decisively in a way that continues to bring order to financial markets," Bush said.

He did not indicate any other steps his government might take, or when.

"In the long run, our economy is going to be fine," Bush said. "Right now we're dealing with a difficult situation."

The Federal Reserve, in an extraordinarily rare weekend move, became a lender of last resort for Wall Street investment houses to begin securing short-term emergency loans. The central bank also approved a cut in its emergency lending rate to financial institutions to 3.25 percent from 3.50 percent.

White House press secretary Dana Perino said later that Bush had been kept informed of the Fed's intended actions through a variety of people, but that he was not personally involved in making or approving the decision.

She defended the dramatic intervention on behalf of the financial markets as necessary, even as Bush himself warned only on Friday against excessive government intervention in the housing markets. "The concern about possible future market disruptions is real, and a concern not only just to the president but also to world markets," Perino said.

She also said the administration was taking action to help individual homeowners suffering from higher mortgage defaults, and that there is "a responsibility on the part of the media to really explain" that assistance.

Later Monday, Bush met with his Working Group on Financial Markets, which includes Paulson, Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission Chairman Christopher Cox.

Afterward, Paulson rejected the notion that the government had bailed out Bear Stearns with a $30 billion line of credit for a takeover by JPMorgan Chase. "If you would ask the Bear Stears shareholder in what has happened in terms of their value, I don't think any of them would think this is a good outcome for them," Paulson told reporters in the White House driveway.

"This was an easy decision," he said. "It was the right outcome."

Comments

[MissingAmerica]

07:50 AM on 03/18/2008

Bush remains delusional, failing to see the disastrous results of his inept leadership (or lack thereof).

His record, which was not released until after he stole the first election, showed a record of bankrupting corporations and failed business ventures. He is doing no less with America.

Bush says we're fine when, in fact, he is breaking the back of America. He says, "I'm on top of it". He is, because we are allowing him to remain there. Meanwhile, we are the ones buried underneath it.

Finally, the 1,000,000+ votes to impeach have made it, and I am amazed at how many of those votes were cast within the past few days! We are five years into an illegal war and our economy is the worst its been since WWII.

It's time for us all to email Pelosi and our representatives and tell them that if they do nothing to protect us, we will do nothing to protect them. We still have the votes. We put them in and we can vote them out, even (and especially), Nancy Pelosi.

It is time to impeach Bush and Cheney and hold them and their posse accountable for the damage they have done to this country. Bush on top? Let's put him down here with us! Impeach now!

[WorkingClass]

07:12 AM on 03/18/2008

Bush is a one trick pony. Look you in the eye and lie. Its the only thing he does well. But thats not what made him the most hated man in history. He is hated because he is a bully, a coward, a thief and a murderer. George Bush is a lightning rod for evil. Some say America is being punished for allowing abortion. Some say for condoning homosexuality. Some say for bombing Japan or for slavery or genocide. Whatever the crime - George Bush is the punishment.

[Novista]

03:52 AM on 03/18/2008

"In the long run," as some economist comedian said, "we are all dead."

Yeah well.

I've been wondering when Bush's portrait would appear on some denomination of US (fiat) currency. Oh, wait ... that's only supposed to be DEAD presidents. Excuse the intrusion ...

[ssaz]

01:38 AM on 03/18/2008

How is it that we have a president that continues to insist, with all evidence to the contrary, that our economy is going down the tubes. How is it that every economist agrees we are slipping into recession and quite possibly even depression. How is it that the Monkey in chief and his side-kick hitler clone are allowed to continue driving this country directly into the ground all while continuing to prop up and defend big oil and their own special interests. What exactly will it take for Americans to OPEN their eyes and do something. Will it take a nuclear weapon on Iran before our congress will impeach these hitler like leaders? Our rights are being diminished, he constitution has all but been dismantled, and here we sit blogging about it while congress sits on their asses doing absolutely NOTHING! When the good old US of A collapses I guess all the repugnicans will do the monday night quarterbacking but today they don't have a clue except follow Bush and Cheney like lemmings over the cliff!

[forpeace]

11:57 PM on 03/17/2008

*

Bush on the Economy: I Am an “Optimistic Fellow”

While more than 70 percent of economists now believe the nation is in a recession, President Bush continues to insist the foundation of the economy is solid. He spoke on Friday at the Economic Club of New York.

http://www.democracynow.org/2008/3/17/headlines#5

*

[rex1933]

11:53 PM on 03/17/2008

Bush will be on top of everything when the declares a Constitutional Dictatorship just prior to November 2008. If he needs an excuse, then his cabal will make one, like the terror threat is so great that change of administration would put the United States in greater peril. I'll bet he has a plan for just that move.

[skindoggy]

09:41 PM on 03/17/2008

Bush's expression says it all.................."What me worry???"

We saw the same look on Sept 11th

We saw the same look during Katrina

We saw the same look at "Mission Accomplished"

and we will see the same look when we become a third world nation.

Skindoggy

[wordvarc]

09:13 PM on 03/17/2008

The Saving and Loan fiasco, Energy deregulation, Home land Security, and unjust war. The so called "tax and spend democrats" have never spent taxpayer dollars and expanded government like these RNC self proclaimed "risk takers" and wanabe "benevolent dictators." How many more of these RNC presidents will claim they are Lincoln, preach small government and conservativism but really pander to the rich, increasingly burden the poor and middle class, start wars and deregulate whole sectors of the economy for short term financial gain of cronies (even bailing them out with taxpayer dollars) at the expense of working people. The RNC is crucifying democracy and the United States of America. The Republican party has succumbed to the greedy arrogant idiots Eisenhower warned us about. ..

[BPCentrisAmerican]

05:40 PM on 03/17/2008

Little Bush has never been able to admit that he’s wrong, adjust course, or has even been remotely honest about anything, if he told me it was a bright sunny day, I would look up. Supply side is a FAILURE and the Republicans keep on resurrecting it.

Republicans are beginning to through Bush over the side; they are saying that George Bush is ruining the Republican brand. No, the Republicans ruined their own brand, by constantly pushing wedge issues and praying to Milton Friedman on their keens every night. Bush summons his tools in the Dixirepublican leadership to the big white house and he tells them to jump and they respond how far. Bible belt social conservatives and right wing / new left neo-cons, with the help of a compliant to radically right wing media, both TV and radio, have ruined the Republican brand, period.

[outnow]

05:39 PM on 03/17/2008

The US is losing the war in Afghanistan more than the war or occupation in Iraq. The economy is in the tank. We are not any safer from terrorist attacks, we are less safe, according to the NIE.

Why does anyone worry about "family values" in a failing economy and while we are at perpetual war.

If Americas vote for the same issues of Guns, Gays and God while their families are going without health care, their children are without a good education, and the financial system cannot be trusted with money, I just wonder what they are going to do in the next Great Depression. When Americans are picking grapes for two dollars per day maybe they will finally understand that they can do without their gun, that gays are not to blame, and that God is not the issue that they need to worry about.

We used to look to the president as the president not a commander-in-chief of failed wars. We expected to be able to trust what the president said - at least to some extent.

There will never be any way of determining how much junk mortgages are being dumped into the financial system. Investment bankers have poisoned the well in commercial banking. Where is the accountability and the transparency?

[Nova16]

05:36 PM on 03/17/2008

Bush is not to blame for the mess at home and abroad. The incompetence, ignorance. lack of intellect and arrogance that he brought to the highest office in the land was observable and predictable the day he announced his run for the presidency. He was elected twice. The blame for the mess at home and abroad is the direct result of an electorate with a lack of interest and concern for the daily activiies of this administration and its enablers in and out of congress which includes the media, talk radio, Faux News and the network evening news programs that coverd a myriad of insignificant items rather than the important ones.. Yes, we are in an endless war killing and maiming tens of thousand and squandering hundreds of billions of dollars with no end in sight, Yes, we are in a recession at home heading into a depression, Yes, our democracy and the future of our children are in jeopardy, Yes, we have lost our prestige and honor around the world and, Yes, it was all predictable. The only way this electorate can vindicate the errors of the past two elections is to kick every republican out of office. They are all fascists. Vote republican at your peril.

[WIpatriot]

07:52 PM on 03/17/2008

Oh, dear, what is a poor Republican to do?

You don't give them an acceptable choice...lol.

[ssaz]

01:54 AM on 03/18/2008

You don´t have to give them a choice. They are like lemmings, they will continue to follow McCain right over the cliff.... While very well stated, the above comments will not ring true with the republicans if you burned every square of the USA to the ground. Even then, they would continue driving wedge issues into the forefront in an effort to stack the supreme court on a radical right-wing agenda!

[forpeace]

11:59 PM on 03/17/2008

*

Nova16

...........The incompetence, ignorance. lack of intellect and arrogance that he brought to the highest office in the land was observable and predictable the day he announced his run for the presidency. He was elected twice...........

==================

Well said!

*

[momofsonofwar]

05:10 PM on 03/17/2008

Quick, someone bail me out !!!!! And I will give you nothing !!!!!

[Iownpeterbilt]

04:50 PM on 03/17/2008

I have read clear through the thread, and not even one neocon defender......

[gcallaghan]

06:11 PM on 03/17/2008

they await their talking points from rush and are unable to post without those - this is not a bad thing.

[hmmmmmer]

04:10 PM on 03/17/2008

On top of it, like the missionary position? Are we, the middle class the ones being screwed here, while Bush and his cronies, billionaire oil and money market drain our society. they reap all the rewards and the welfare that the Republicans just can't seem to help out the poor with, but will immediately help out the rich. Bush says his tax cuts help, but how long have them been in effect and how many of the middle class and poor have benefited? Wake up America, it is time to throw the bums out of office and replace them with something new and less smelly.

[Sumocat]

03:28 PM on 03/17/2008

"In the long run, our economy is going to be fine," -- The same could be said of The Great Depression. Doesn't mean it didn't suck.

[MajorKong]

08:27 PM on 03/17/2008

"In a hundred years we're all dead" - John Maynard Keynes

[Donk]

02:28 AM on 03/19/2008

Probably twenty...