A Tale Of Two Economies: Bush, Bernanke Differ On Where US Is Heading

On the same day, President Bush and Federal Reserve Chief Ben Bernanke gave two very different assessments of where the US economy is going. Bush was Mr. Positive while Chairman Bernanke's testimony forewarned of the pain to come. Read excerpts from the two takes below.

Bush:

President Bush said Tuesday the nation's troubled financial system is "basically sound" and urged lawmakers to quickly enact legislation to prop up mortgage giants Fannie Mae and Freddie Mac. 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.

Amid soaring gas prices, the toughest real estate market in decades, falling home prices and financing that's harder to come by, 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.

Bush 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

Bernanke:

Federal Reserve Chairman Ben Bernanke told Congress Tuesday the fragile economy is facing "numerous difficulties" despite the Fed's aggressive interest rate reductions and other fortifying steps.

At the same time, Bernanke, testifying before the Senate Banking Committee, sounded another warning that rising prices for energy and food are elevating inflation risks. This problem looms even as officials try to cope with persistent strains in financial markets, rising joblessness and housing problems.

Comments

[AbolishTheFed]

Cops to IndyMac bank customers: Remain calm or face arrest:

Police ordered angry customers lined up outside an IndyMac Bank branch to remain calm or face arrest Tuesday as they tried to pull their money on the second day of the failed institution's federal takeover.
http://www.dailynews.com/breakingnews/ci_9887404

[3arthling]

Welcome the good ol' US of A, where they protect the thieves and arrest the victims. It's "Bizzaro World" (for you Superman fans out there).

[AbolishTheFed]

From his office in clouded cuckoo land: Bernanke's Dour Message:

The Fed chief says the economy should improve "gradually" over the next two years, but warns of "considerable uncertainty" about that outlook
http://tinyurl.com/5ndmul

[StillAmused]

I see they're still quoting the delusional imbecile.

[Vinca]

Even though I know Bush can't speak truth, I sometimes listen to his News Conferences, ,just too see if he screws up, CONYERS AND PELOSI BOTH NEED TO BE VOTED OUT OF OFFICE FOR ALLOWING THIS CRIMINAL TO REMAIN OFFICE< VINCENT BUGILOSI WAS RIGHT< < GO BUY HIS BOOK

[AbolishTheFed]

FIAT EMPIRE - Why the Federal Reserve Violates the U.S. Constitution‏
http://video.google.com/videoplay?docid=5232639329002339531

http://www.fiatempire.com/

[jpshotwheels]

EVERYONE IN AMERICA SHOULD GO TO WORK AND CHANGE THEIR W2 FORMS, DON'T LET THEM TAKE ONE MORE DIME FROM YOU TO PAY FOR THESE BANK BAILOUTS. KEEP YOUR MONEY SO YOU CAN KEEP YOUR HOUSE. THEY HELP THE BANKERS, THE ONES THAT CAUSED THE PROBLEM, AND SCREW THE HOMEOWNERS, BUT THATS OKAY YOU HAVE TO PAY TO BAIL THEM OUT, IN THE MEANTIME YOU LOOSE YOUR HOME.

I SO SICK OF GEORGE W. BUSH, WHEN IS HE LEAVING OFFICE. SORRY FOR THE CAPS FOLKS, BUT I AM DOWN RIGHT ANGRY.

[WLA]

"WHEN IS HE LEAVING OFFICE."

==

Noon Eastern Time on Jan. 20, 2009.

[arkgrfx61]

That would be 6 months, 4 days, 4 hours, 29 min and 30 seconds...

but whose counting.

[whizkid]

Another pathetic speech by the worst president ever.

http://www.youtube.com/watch?v=Eb2MWDY65sQ

[AbolishTheFed]

You are giving undue credit. Bu$h was NEVER duly elected, nor re-elected, so is NOT the President & never was.

[LaFeminazi]

On a scale of 1 to 10, 10 being the maximum, which of these two is credible.

Bush: 0

Bernanke : 3

Otherwise its the same old garbage.

What they should have said is:

The government will throw your tax dollars at the problem (thus exploding the debt) until the banks start turning a profit again. After which the rich can walk away with the profits.

If you are going to socialise the losses, how about dividing up the profits equitably?

Its time to nationalise these two GSEs.

[AbolishTheFed]

UMMM, I think you must have accidentally hit the three instead of the zero for Bernanke.

Or did you forget to hit the minus before the three?

[Naithom]

George isn't seeing the glass as half full or half empty, he's looking at it through the bottom of the bottle....

[sean6886]

Only the rich are getting richer.
People are getting laid off, and the only jobs available are low paying, non-realistic retail or food service jobs. Try getting one of those after you've been laid off from a good $30-$40 thousand a-year job and see if you can survive???
Productivity is high...IN CHINA where all the manufacturing jobs are moving!
Taxpayers will pay for the bank bailouts, but FU to those losing their homes-we can't help you. I don't think we should bailout homeowners in trouble, but readjusting their loans so they can pay it back without losing everything is what can be done. At least the taxpayer won't be responsible. These banks knew what they were doing and yet Bush is more than willing to bail them out. I'll shut up now, I guess I'm whining!

[Beachchick]

The factory workers in China are slaves to neoliberalism, too. We get Wal-Mart; the Chinese get sweat shops. Pick your poison.

[vippy]

But we are at fault - we keep voting for the same crappy people time after time again.
These people in congress and senate been therre forever and need to go. All they do
is stuff their pockets, take bribes from lobbyists and we just look on and give them more
time in office. How stupid are we?

[Beachchick]

The tax payers have to bailout the financial sector for the stock holders and those fat CEO bonus checks. Oh, but wait - this isn't a bailout according to King George. The stock holders still own Fannie and Freddie. I am still trying to figure out his logic, but then again, why hurt my head.

Nationalize Fannie and Freddie. We are paying to keep them solvent, so why not have the benefits of ownership? Nope - not in this rigged system. Wealth is only redistributed from the poor to the obscenely rich.

[Adiam]

Last

Somebody Stop Me Moment

Q Mr. President, thank you.I wonder in light of the Supreme Court's decision if you could tell us what you plan to do with Guantanamo?

THE PRESIDENT: Steven Lee, we're still analyzing -- "we" being the Justice Department -- are still analyzing the effects of the decision, which, as you know, I disagreed with. And secondly, we're working with members of Congress on a way forward. This is a very complicated case; it complicated the situation in Guantanamo. My view all along has been either send them back home, or give them a chance to have a day in court. I still believe that makes sense. We're just trying to figure out how to do so in light of the Supreme Court ruling.

THE SUPREME COURT RULING AND HIS ALLEGED VIEW IS THE SAME. PUT THEM ON TRIAL OR SEND THEM BACK.

Are You Serious?

Why have you not sort of called on Americans to drive less and to turn down the thermostat?

THE PRESIDENT: They're smart enough to figure out whether they're going to drive less or not. I mean, you know, it's interesting what the price of gasoline has done, is it caused people to drive less. That's why they want smaller cars, they want to conserve. But the consumer is plenty bright, Mark. The marketplace works.

SMART ENOUGH TO VOTE YOU BACK IN OFFICE.
3/ 2003 A BARREL OF OIL $23.00
07/08 $147.00

[dolphy]

The banking system is sound but we have to bail them out. WTF is that?

[6WaysToSunday]

Dolphy,

That's why it's sound. No matter how bad bankers behave, we CYA them!

(BTW, federally insuring deposits in banks denotes circular logic. If people lose their savings, then they are replaced by the taxpayers, the people who lost savings to begin with. Classic. Net effect: if well-off Rethugs lose money at the bank, then middle and lower class taxpayers cough up more than the rich Repug, ,who preferentially save more at banks than the poor, who never have any food stamps... err... loose change left over at the end of the month to save.)

[6WaysToSunday]

Bush: "The Economy Is Growing. Productivity Is High. Trade's Up. People Are Working"...

"There are three kinds of lies: lies, damned lies and statistics." Well with due deference to Misters Disraeli and Twain, "There are three kinds of lies: lies, damned lies and Bush speak."

Mr. Bush, my conservative retirement fund in down about 20% the past 6 months. Care to make a donation to it, Mr. Bush? Didn't think so. And my effective buying power is down owing to the skyrocketing cost of fuel (I drive a small car, thank goodness) and food. Care to buy me dinner, Mr Bush? Or even a bag of groceries? You pass on that too.

Mr. Bush, you are welcome for my tacit financial contribution to your Iraqi War. I didn't want to retire in five years at 62 after a life time of disciplined saving of 15% of my gross income.

[Beachchick]

And let's face it, as much as we may have believed or wanted to believe, the wonder prez doesn't have a magic wand to command low gas. I am so disappointed.

[dolphy]

Maybe Booosh is talking about the economy slowly growing like an in-grown nail. It's torture! Dang! It hurts! FY, Booosh!

[poliscibabe]

Proof-positive that this administration and the GOP have run this country into the ground. Let's count the ways shall we?
1. Ignored terrorist threats and were unprepared for 9/11
2. Started an ill-conceived war with Iraq, costing us 750 BILLION dollars to date
3. Encouraged deregulation of major industries - Energy, Financial Services - major meltdowns in both industries have resulted in slow growth and lost savings
4. Instead of improving government where it made sense they stripped government agencies of critical responsibilities resulting in the disaster that was the Gulf Coast after Katrina

I could go on but you get the point -- there is a method to the madness of the GOP - don't fall for it this year!!!

Obama 08

[AbolishTheFed]

1. Ignored terrorist threats and were unprepared for 9/11
They didn't ignore terrorists threats, they ignored the false trail they were laying for 9/11 guilt.

4. Instead of improving government where it made sense they stripped government agencies of critical responsibilities resulting in the disaster that was the Gulf Coast after Katrina
According to plan, they wanted to get rid of the poor people in N.O.LA. They used a similar plan for the Tsunami.

Explosives experts have told me that the tsunami could have VERY EASILY have been man made. And as far as Katrina, you may want to look into H.A.R.P.. I'm not certain about that, yet I AM CERTAIN they BLEW the LEVEES (EYEWITNESS TESTIMONY).