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

[Paul]

Who cares what Bush has to say about anything?

[AdLib]

Hard working white Americans in Appalachia.

[HumeSkeptic]

Elitist.

[borderorder]

McClown. That'll be two cents.

[WFV]

I saw our illustrious leader's speech live today, and it was embarassing. He thinks we are all as stupid as he is. His speech was hollow, and watching him answer the questions afterward was painful. We are lucky to have limped along this far.

[Nochnoi]

Why did you do that to yourself..­..

[AdLib]

Hey Nochoi!

Feels about the same as watching Chen ey hunt and getting shot in the face. BOOsh has exposed America's masochistic side.

[AdLib]

Hey Nochoi!

Feels about the same as watching Chen ey hunt and getting_shot in the face. BOOsh has exposed America's masochistic side.

[JRandomPoster]

"So it is said that if you know your enemies and know yourself, you will fight without danger in battles.
If you only know yourself, but not your opponent, you may win or may lose.
If you know neither yourself nor your enemy, you will always endanger yourself."

-- Sun Tzu

[grumpygranny66]

WFV......w­e were terrible afraid to limp so, we hopped, scotched. and jumped. Hopefully, pretty soon we will be able to walk slowly with a prosperous economy, when BO becomes our Prez.

[ZsaZsa]

Nobody knows what the hell is going on.

[ChiGuy]

That sums it up pretty well.

[MichiganJFrog]

Towelie does.

[AdLib]

Boosh: "Screw you guys, I'm going home!"

[VolvoBirkenstock]

Is that a friend of Cabana Boy?

[MichiganJFrog]

http://supersmallgallery.com/London/towelie.jpg

[gladys46]

"They" know ... they didn't tell Bu$h! Power floats off-shore to Swiss banks! Covert operatives will have to find them (after this administration goes out of office) just to serve warrants!

[HumeSkeptic]

The war hero knows, but he's not tellin' no one. He also knows how to win wars, but you first have to elect him Prez before he reveals the secret.

[LiberTLover]

Funny how he didn't tell the Prez so that all those troops who died might have been saved. Up until now he has said the Prez was right and deserved our admiration.

[jbcowan]

To the "Rocket Scientists" at The New Yorker:

Pres. Bush standing at a podium discussing the Economy...­..now THAT's Satire !

[emmav70]

many thanks .

that was funny . :)

[HumeSkeptic]

No. That's a joke.

[JRandomPoster]

I'd file under tragedy, not comedy, personally.

[Sloppyseconds]

I just have to laugh at all these polls that people get hooked on before the conventions. I guess the media has nothing else to talk about? Moreover, it's a whole new ball game after the nominees take on their VPs. In Obama's case he will add to his ticket someone with strong military and foreign policy credentials which will clearly boost his standing. For McCain - he will need someone with a strong economic portfolio which is looking more and more like Romney everyday. Unfortunately for McCain this will rub evangelicals the wrong way and do more harm than good. Hee-hee!

[rollingdivision]

No recession, continued growth. Change in real GDP predicted by the Fed 2008, 1.0 to 1.6 percent growth; 2009, 2.0 to 2.8 percent growth and 2010, 2.5 to 3.0 percent growth, no recession here.

At the June policy meeting, officials projected that the rate of economic growth by the end of the year would be between 1% and 1.6%, up from 0.3% to 1.2% in their April estimates. The 2009 outlook was unchanged, with officials expecting growth between 2% and 2.8%. The figures are the “central tendency” of the projections, a range of estimates from 17 sitting policy makers excluding the three highest and three lowest. They were released today with Fed Chairman Ben Bernanke’s semi-annual monetary policy report to Congress.

Expectations for the unemployment rate, now 5.5%, was unchanged at 5.5% to 5.7%.

[AdLib]

Gramm was right, there is a recession in some people's head, your brain appears to be receding like a frightened snail.

Your love muffin BOOsh has completely cooked the numbers that represent unemployment and fiscal growth.

Who do you think the public is going to believe, you and your Daddy BOOsh or their own unemployment, foreclosed home and or greater debt?

[VolvoBirkenstock]

Plagiarised from Wall Street Journal

http://blogs.wsj.com/economics/2008/07/15/fed-officials-see-stronger-growth-and-higher-inflation/

When doing a c&p job, winger, you need to use quotation marks and provide a source.

Of course, you probably wanted us to believe you had those figures readily available in your "steel trap" of a mind.

[HumeSkeptic]

So, we should ignore Bernanke because you learnt to plagiarize?

[VolvoBirkenstock]

Being exposed as a plagiarist seems to have driven rollingdivision away.

They just aren't making tr0lls the way they used to.

[jhamm1]

And let's not forget that unemployment rates merely refer to those who are actively collecting unemployment benefits and offer no indication whatsoever to those whose benefits have elapsed as the result of chronic unemployment. Thus, while the "unemployment figures" may technically read somewhere in the five percentile, the actual jobless rate has probably already exceeded 10 percent.

[klandish]

Again, who do you believe?

[gladys46]

Obama!

[doc1400]

Now just who do you trust. On one hand we have a professional economist.

On the other hand we have the worst president in history who has an approval rating
that is the lowest in history and a real delusional, intellectually challenged zero.

This is a real tough choice.

[HumeSkeptic]

I go with du_m_bya. He has hair where it's supposed to be.

[VolvoBirkenstock]

He also has it in places where it shouldn't be.

[1proudinfidel]

Since the President does not control the economy, you should focus the complaints to the most ethical, most do-nothing-except to chase Karl Rove- Democratic congress; which happens to have the lowest approval ratings in history.
Your Bush derangement syndrome has you blind to the real culprits.

[neoconsareliars]

hello, any neurons in there? didn't see any by the post. must be a neocon derangement brain syndrome problem.

[PierreLeClerke]

LEADERSHIP through intelligent policy. and for the common good not for the corp masters.

Public servant not private facilitator!

[jesuswazasocialist]

America should increase the minimum wage, think about it.
Our Australian dollar is almost on par with your US Dollar and our Minimum wage minimum say for Retail is $54,000 a year http://content.mycareer.com.au/salary-centre/retail/saless).
You Americans are sure getting ripped off.
Its good that we don't have Mexico on our border, but we do have NZ.

[gladys46]

Who told you Mexicans were getting anything near living wages here in America!!?

[VolvoBirkenstock]

You might want to re-read the post.

No such claim was made.

[jesuswazasocialist]

I know Mexicans get paid less then the average American of course they do. They would have to being illegals and all.

[Nochnoi]

What do you have against Kiwis?

[grumpygranny66]

jesus
It's obvious your Govt. is looking out for the welfare of it's people,
our Govt. is looking out for himself, and 2% of the people in America.
That's what happens when you live in a country govern by criminals.­.

[LeSamourai]

Off topic of the economy, but still on topic of the spin cycle which will never end:

The newest one - now that the International Red Cross has stated that the Bush administration is guilty of war crimes is....

To make the International Red Cross seem petty in what their definition of "war crimes":

http://www.cnn.com/2008/WORLD/americas/07/15/colombia.red.cross/index.html

If one didn't have a brain, one would actually HATE the good people of the International Red Cross.

...and be a registered Republican.

[cruisepuppy7452a]

Bush needs to be tried for treason.l watched in horror yet again another person forced to live out of thier car as they lost thier home, all of thier assets. The sad part of this, nobody seems to care. Those who have lost it all, ended up in banckcruptcy, we care. Yes, it can be told years back Cruz ended up in her shoes. Its a horrible feeling watching that happen to you. You lose your dignity, hope, everything. Millions of Americans are now in that same spot. Don't tell us the economy is great. We know better. Good, hard working, educated people, losing it all. I faught back, ended up slowly rebuilding my credit, life, now have a great job, but still have to watch every penny. There is a falacy, tht this can't happen to you. Oh really? Tell that to those whom it has happened to, is still happening to. Nobody is immune. Those who choose to profit from others demise are pure evil, those who want to keep them down, crimminal. Bush belongs in federal prison. Let's help get him there for all of those who lost it all, stand to lose it all.

[VolvoBirkenstock]

United States Constitution

Article III

Section 3.

"Treason against the United States, shall consist only in levying War against them, or in adhering to their Enemies, giving them Aid and Comfort. No Person shall be convicted of Treason unless on the Testimony of two Witnesses to the same overt Act, or on Confession in open Court. "

Treason is the only crime defined in the United States Constitution. The Founders wanted the definition clear so that the crime could not be changed by statute. It was the habit of the Crown and Parliament to change the definition of treason to seek retribution on political opponents.

While Bu$h may be guilty of many crimes, and should be investigated, indicted and tried if evidence so shows, treason, as defined by the U. S. Constitution is not the proper charge.

[combatveteran]

The remarkable item not discussed this week was the fact that Phil Grahm has been John McCain's economic pastor, for how long, lauded almost weekly basis during this campaign. His name proudly displayed every time the word economy was mentioned around or about Mr McCain. How is it that he can dismiss him with one swift stroke. Isn't that a bit naive. Would anyone mind asking the question. "Does John McCain feel the same way, but just too political not to say it".

[Vurt]

I remember a budget surplus and Alan Greenspan telling me the greatest threat to the american economy was the danger of paying off the debt to quickly.
Oh yeah, I remember the iraq war paying for itself too.

[TAC]

"Oh yeah, I remember the iraq war paying for itself too."

And I remember..­.

Defense Secretary, "It is unknowable how long that conflict will last. It could last six days, six weeks. I doubt six months."

Vice President, "I think things have gotten so bad inside Iraq, from the standpoint of the Iraqi people, my belief is we will, in fact, be greeted as liberators. . . . I think it will go relatively quickly, . . . (in) weeks rather than months."

[CindyKay]

Hey,,,,,,,,,,,,, Why is Everyone So Upset ?

When You live in Two Americas You Have Two Economies!

Note: The Above Is Sarcasm.

[JRandomPoster]

Just like the ownership society.

We all divide up into owners and owned.

[ZsaZsa]

There is no longer any difference between sarcasm and truth.

[layman]

Bushco is doing it again, cooking up an economy to fool the public , like he did cooking bogus iintelligence and led us to war.

[forpeace]

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layman
..........­like he did cooking bogus iintelligence and led us to war.
============

Exactly!

Unfortunately there are some fools who believe him.

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