Avoid overcorrecting economy, Bush warns

AP on Yahoo ^ | 3/15/08 | Terence Hunt - ap

[NormsRevenge]

WASHINGTON - President Bush on Saturday said the government must guard against going too far in trying to fix the troubled economy, cautioning that "one of the worst things you can do is overcorrect." Democrats said Bush was relying on inaction to solve the problem.

Bush, in his weekly radio address, said the recently passed program of tax rebates for families and businesses should begin to lift the economy in the second quarter of the year and have an even stronger impact in the third quarter. But he urged caution about doing more, particularly about the crisis in the housing market where prices are tumbling and home foreclosures have soared to an all-time high.

"If we were to pursue some of the sweeping government solutions that we hear about in Washington, we would make a complicated problem even worse — and end up hurting far more homeowners than we help," the president said.

The economy has surpassed the Iraq war as the No. 1 concern among voters in this presidential election year amid big job losses, soaring fuel costs, a credit crisis and turmoil on Wall Street.

"In the long run, we can be confident that our economy will continue to grow, but in the short run, it is clear that growth has slowed," Bush said. He was spending the weekend at the Camp David presidential retreat in Maryland's Catoctin Mountains after delivering a speech in New York about the economy and helping raise $1.4 million for the national Republican Party.

Democrats said they would try to strengthen the economy with measures dealing with housing, energy efficiency and renewable energy.

"The president continues to convince himself that inaction is the cure-all for the economic problems hurting hardworking Americans," Senate Majority Leader Harry Reid said in a written statement. "But Democrats know that wait-and-see is not a responsible strategy for an economy that is teetering on the brink of recession."

"Wages and home values are down," Reid said, "but prices for everything from health care to tuition to energy are up. Just this week, oil and gas prices reached record highs while the value of the dollar reached historic lows. I hope the president, who has been slow to acknowledge this problem, joins us in recognizing how urgently we need a solution."

Bush said he opposed several measures pending on Capitol Hill to deal with the housing crisis. They included proposals to allocate $400 billion to purchase foreclosed-upon and now-abandoned homes, to change the bankruptcy code to allow judges to adjust mortgage rates and to artificially prop up home prices.

"Many young couples trying to buy their first home have been priced out of the market because of inflated prices," the president said. "The market now is in the process of correcting itself, and delaying that correction would only prolong the problem."

Bush said his administration has offered steps offering flexibility for refinancing to homeowners with good credit histories yet are having trouble paying their mortgage. He cited other measures which he said would streamline the process for refinancing and modify many mortgages.

He said there were steps Congress could take, as well.

"As we take decisive action, we will keep this in mind: When you are steering a car in a rough patch, one of the worst things you can do is overcorrect," the president said.

"That often results in losing control and can end up with the car in a ditch," Bush said. "Steering through a rough patch requires a steady hand on the wheel and your eyes up on the horizon. And that's exactly what we're going to do."

[vietvet67]

The Fed always overcorrects..

[Southerngl]

The left can’t see past the nose on their face. FIX IT NOW, 3 years from now be damned!

However, SOMETHING has to be done soon. I hope it corrects itself quickly.

[MNJohnnie]

This is an absurd argument coming from the same Democrats who are going to deepen and lengthen the recession by repealing the Bush tax cuts. The Democrats plan for a “cure” is going to be far worse then the supposed “disease” would of been if they, and Bush, actually DID nothing.

[BGHater]

They shouldn't ‘fix’ anything. The Free Market needs to work.

Anytime, someone wants the ‘Gov’t’ to fix something, question their sanity.

[Kolokotronis]

“Bush, in his weekly radio address, said the recently passed program of tax rebates for families and businesses should begin to lift the economy in the second quarter of the year and have an even stronger impact in the third quarter.”

What a clown!

“But he urged caution about doing more, particularly about the crisis in the housing market where prices are tumbling and home foreclosures have soared to an all-time high.”

Unless of course we’re talking about Wall Street. The we’ll spend whatever we need to spend. The idiots on Main Street can take the hit and pay for bailing out Bush’s globalist buddies. You know, its like he wants to assure the Democrats win in November. Kyrie eleison!

[REPANDPROUDOFIT]

I am so tired of hearing about the lousy economy. Maybe we are going through some tough times. But, I challenge the talking heads to go into their homes, and into the homes of most Americans, and just look around. We lead a pretty good life, even if it is looking like we will be paying more for it.

[LouAvul]

The Fed always overcorrects..

Remember Paul Volker and 24% prime interest? Those were "exciting" times.

We can thank Volker for one thing, viz. America blamed that idiot Carter for the economy. Reason #1038 why Carter lost re-election.

[ex-snook]

A good place to start would be to figure out what went wrong before correcting it.

We have tried the constant stock market placebo of cutting interest rates and bailing out Wall Street. Maybe someone should look at the effect on our economy of spending almost a trillion dollars every year in trade deficits, installing democracies in the Mideast and being Robocop for the world.

[Moonman62]

President Bush on Saturday said the government must guard against going too far in trying to fix the troubled economy, cautioning that "one of the worst things you can do is overcorrect."

I wonder if Sarbanes-Oxley would be a good example of overcorrecting.

[E. Cartman]

Maybe someone should look at the effect on our economy of spending almost a trillion dollars every year in trade deficits, installing democracies in the Mideast and being Robocop for the world.

Bingo! When Bush abandons some of those madcap schemes, his advice might again be worth something.

[SaltyJoe]

I think a lot of people have the "wait and see" attitude concerning investing.

"Wait and see" who's going to be elected. Then I'll know how I'll spend my effort. I won't tell you beforehand because I know it will be futile. Until then, I'll do my job, pay my taxes, and as always, look out for my interests first (relationship with God, family, etc.).

"Ask not what your country..." uh, no. This present age is the product of giving too much to secular temporal power.

If America can tighten its military secrets, expand its own fossil fuel exploitation (like drill in ANWR), and lower the tax burden for all Americans, then there's no real global competitor that will put our way of life in danger. Spirituality (lack of,) is a weakest aspect. It led to secrets being sold, enslavement to oil producers who'd hold over a barrel literally, and ridiculously high taxes that keep us from individual progress.

Lack of spirituality leads to addictions of the flesh and laziness to do one's own work. That's why there are professional politicians who'd rather drill a young call girl or staff intern and sell their office to our competitors to keep their life easy.

[Wallace T.]

The best thing the Federal government can do at this point is to let the chips fall where they may and not intervene. As for the Fed, lowering interest rates and inflating the money supply are not wise moves. During the Panic of 1920, nonintervention was the rule, and the Federal Reserve did not disconnect the currency from gold, as happened in 1933. The economy took the shock and rebounded nicely in short order.

[count-your-change]

In all the comments I’ve read on what is taking place in the economy I’ve seen precious little about economic theory. Maybe reading about the effects of following the ideas of Keynes while trying to slip in a bit Marx’s labor theory would be instructive. At least it might make clear that following bad theory and advice gets people and governments into trouble.

[calex59]

How about this for a thought: The government should get their a** out of the economy period, kill the fed reserve and let things alone. The reason for the huge inflation this country has had since my childhood in the 1950s is because of the fed reserve and the ability to print as much money as we need, regardless of worth of said money. Government needs to stay out of our lives as much as possible, the reason we fought the revolution against the British was to do away with as much government as possible. Now look at us, what a fall we have had.

[Southack]

"As for the Fed, lowering interest rates and inflating the money supply are not wise moves. During the Panic of 1920, nonintervention was the rule, and the Federal Reserve did not disconnect the currency from gold, as happened in 1933. The economy took the shock and rebounded nicely in short order."

What stumbling idiot told you that above?! Go shoot her to put her out of her misery. The U.S. didn't recover from the Crash of 1929 until the end of WW2 in 1945.

That ain't short order, wasn't a nice way to rebound, and wasn't without intervention.

[RightWhale]

Democrats said they would try to strengthen the economy with measures dealing with housing, energy efficiency and renewable energy.

This is rich. Especially energy efficiency and renewable energy. How can they possibly imagine that anything having to do with these with strengthen the economy? These are total luxuries and are exactly those things that promise to destroy the economy. Housing, FedGov style has been disastrous except for those winning FedGov contracts.

[calex59]

What stumbling idiot told you that above?! Go shoot her to put her out of her misery. The U.S. didn't recover from the Crash of 1929 until the end of WW2 in 1945. That ain't short order, wasn't a nice way to rebound, and wasn't without intervention.

You are confusing the crash of 1920 with the crash of 29. In 1920 the government stayed out of the economy and it rebounded quickly, '29, not only did the government stick their face in with outlawing gold but the idiot FDR raised taxes and prolonged the depression way past when it would normally have ended. It was his plan to get people dependent on government, he was a huge socialist and thought he was right. He was wrong and the economy proved it, people were brainwashed by the press into thinking he was great when in reality his policies kept the depression alive. BTW, the depression of '29 started to ease in '33 but did not end totally until the start of WWII, not 1945, that was the end. The beginning of the war stopped what was left of the depression in 1942.

[lonestar67]

President Bush is not a clown.

Your arguments lack good Christian character.

I think your tagline should be modified to accommodate your bad attitude.

[Kolokotronis]

“President Bush is not a clown”

You’re right. That’s an insult to all good clowns and there’s absolutely nothing even remotely funny about him or what he has done.

“Your arguments lack good Christian character.”

Tell me something LS67; can one fully support Bush and still call oneself and actually be a Christian? Clearly, one can kill Christians and blow up their churches while being a major supporter of Bush and call oneself and actually be a Mohammedan.

“I think your tagline should be modified to accommodate your bad attitude.”

Really? I think it should stay the way it is to remind folks that in the end, the plans of the New World Order types like Bush and McCain and their Mohammedan bankrollers will come to nothing.