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

[jeun28]

So here goes my question, if the current economic policy and foreign policy are not working for everyday folks. McCain is working with the same status quo. So please explain to me if there is no difference b/w the current and mccain administration, why are people being sucked in by mccain or neocon agenda? Mccain is not a real republican too me, he sold out years ago and is part of the neocon agenda

[chendri887]

Why? Well, let's see: First and foremost, most Anglo Americans are not ready to give up the idea of the American exceptionalist myth at this point, and all the baggage that entails. Such baggage includes that America is the superhero of the world; that all of our wars are just and righteous; that we are not imperalists but "liberators;" that we are blessed by God with a special mission to save the world (either through Christ or democracy); and that we are a Judeo-Christian nation. Let's see, uh, which of the two candidates seems to, uh, look more the part for that role? Um, could it be...McCain? And is not that the reason the American left has a harder time in elections, because the great majority of Americans are not ready to relate to the world in a more multilateral way?

[nellie]

If ever there was a case for requiring all presidential candidates to submit to a psychological evaluation, this is it.

[VolvoBirkenstock]

"Optimism is the content of small men in high places."

~F. Scott Fitzgerald, "The Crack Up"

[AdLib]

Excellent!

[LeSamourai]

"My pessimism goes to the point of suspecting the sincerity of the pessimists."

-Edmond Rostand

[flydoghead]

fantastic !

[dolphy]

Fitzgerald could have been talking about the content of Bushes head between the ears.

[byrdland49]

One of the hallmarks of the Rethuglican revolution, characterized by their holy leader, Ronald Reagan, is an absolute inability to discern reality. I suppose it comes as a reaction to Jimmy Carter, who was widely castigated for telling Americans that things were in pretty tough shape. We suffered through the first gas crisis under Carter, and he certainly told us that we would have to sacrifice and conserve If only we had listened to him. Instead, we elected Reagan with his fatuous smile and empty words. Go ahead, America, spend...there's an endless supply of oil out there. Well he didn't exactly say that, but that was the message implicit in his unwillingness to ask the American people to change their ways.

Imagine where we would be today if we had started a national program to create alternative energy sources and cars that got 100 miles per gallon back when Carter spoke, and told us the (difficult) truth. Instead we fell for the Rethuglican happy face lies...and still listen to their fearless, and stupid, leader today.

[6WaysToSunday]

Sad how stupid the voters were than, and remain now. I thought Carter's plan was right on then. It turns out that he was Nostradamus-like in his prophecy. The blame lies on the voters.

Oh, did you forget "lying" leader? Classic Bushco strategy. Say the same lie long enough, loud enough, then enough bigots, bubbas and billionaires (i.e. Repugs and undecideds) will believe it so you and your proxies can get re-elected.

[caldarone]

well I am too young to remember any of that, but It is true, and hey this country has been falling for rethuglicans lies for years. this country get exactly what it deserves..You see the polls want to elect J. MCcain another republican to keep this ball rolling.. so hold on to your seats it going to be bumpy ride,

[chendri887]

Ah, yes, Ronald Reagan. The prophet of anti-envir­onmentalis­m. Did not even believe in acid rain. Told the Prime Minister of Canada, "I can't help you," when asked to work on some kind of bi-country program to deal with this problem. My gosh, the anti-intellectual, anti-rational streak the Puritans and other Protestant religious sectarians brought with them to influence our national mythology never gets old, does it? What a joy!

[Kalima]

When was the last time GB and his cronies went grocery shopping, waited for hours in
hospitals, pumped their own gas or have to let their child go without because they can't
afford it?

[Nochnoi]

LOL! Are those rhetorical questions?

[AdLib]

What do you think? :-)

[Kalima]

Sort of, although the answer would be hardly ever, so he has no idea about
life outside the WH or his "ranch." Like too many others, he thinks that
hardship is inside of your heads. Pass the smelling salts!

[ms.understood]

We need to make the networks promise to keep Bush's lying face away from the microphone!!

[PepeLepew]

Is Bush living on another @#$%ing planet, or what?
Geez, give this guy his lithium!

[dolphy]

Cyanide would be better.

[chappelforpres]

OK. Let me restate my censored post.

W? The man's as useless as "t*ts on a Hog"

[dadw5boys]

but he was elected 2 times!!!!!!

must be the lipstick on that pig.

[nellie]

You mean, he stole two elections.

[layman]

Wall Street had a down day in the red today.
Guess The Street percieved Bernanke's telling the truth, and Bush, A LIAR

[dolphy]

It's been a pattern the last several years. Whenever Boosh speaks about how good the economy is, stocks fall. His base knows him.

[dadw5boys]

Just grab your ankles taxpayers!­!!!!!!!!!!

[AdLib]

Taxpayers? When haven't they been getting it in the end for the last 7 years, while the wealthiest 3% has been getting more and more in their pockets thanks to the government?

Tax the wealthy their fair share, stop the handouts to Big Oil and other corporate interests and end the Iraq war that's buried our nation in debt.

[VictorLudorum]

when the price of real estate goes down is when many lucky buyers come out.....

when the oil prices are settled beforev oil is dug the prices are settled to support few economies....


when decisions are made with force oir fighting relationships are marred and when relationships are marred the world market decreases. ]sometimes affairs are literally explained]

thye us economy cannot be in shape but money is pouring in from everywhere illegally or where is all the money going. ? why has us allowed banks like citibank that have been allotted instead of being built.allotted to share revenues with UBS from the one leftover case of world peace 'LEGELISE DRUGS' because i will..And since you cannot jump start economies i have ..There is no force to utilise a full Soveriegn Wealth Fund or it will be a mnere detraction and not so fancy..

im happy that time is improveing and more better programmes are recognised by The World Society Government.

USA may not be jump starting Globalisation for my sake but the Us Corps and professors have played thier role...

The rest of the world and wallets can only be built by trillions because all other 'sums' have played thier card ..................

[jbcowan]

How's that Hooked-on-Phonics working for ya ? Cuz you can't spell SH*T !

[dadw5boys]

most of the defaluted loans were taken out by investors not actual homeowners. the tax paers are bailing out not onlt investment bankers butr realestate investors also.

[GiannaX]

"most of the defaluted loans were taken out by investors not actual homeowners"

U'mm, what parallel universe are you living in? That is totally NOT TRUE!

[dolphy]

Did you encrypt your post?

[VolvoBirkenstock]

SEC issues emergency rule to curb short sales
By Rachelle Younglai and Emily Chasan
1 hour, 54 minutes ago

WASHINGTON/NEW YORK (Reuters) - U.S. securities regulators issued an emergency rule on Tuesday to limit certain types of short selling in major financial firms, including Fannie Mae (FNM.N) and Freddie Mac (FRE.N).

The rule is the latest effort by the U.S. Securities and Exchange Commission to clamp down on market manipulation that some blame for the sharp declines in financial stocks and the demise of investment bank Bear Stearns in March.

The rule will go into effect on Monday, July 21, and last through July 29, although it could be extended to last up to 30 days. The SEC said it will consider rules to address short selling issues across the entire stock market.

http://news.yahoo.com/s/nm/20080716/bs_nm/sec_shortselling_dc

Finally!

People should not be able to make money betting that the price of a stock will go down.

One of the first sensible things they have done in years.

Many speculators just lost their shirts. GOOD!

[AdLib]

Though we'll have to wait until 0bama is president to get the SEC to halt speculation on oil.

[LeSamourai]

Curious, that...

If oil is such a vital part of our national security as this administration likes to tout... why are speculators even part of the equation?

Aren't THEY one of the biggest threats to said commodity, and thus our national security?

[woundedduck]

If we could harness the power of Bush's bubble, the energy crisis would be licked.

[Docbcs]

Right...the economy's fine. And (to quote Dorothy Parker) I am Marie of Roumania.

[SCG]

Replay of Obama's foreign policy speech on C-Span now.