George Bush is so insignificant to the economy except for the inexcusable abuse of his administrations authority to get our country into this situation. His recent one minute speechifying is proof that he is irrelevant at this point in time:
9:40 A.M. EDTSo, in the one minute it took George Bush to deliver his comments, has he been able to restore your faith in his leadership to deliver us from the mess he helped cultivate? Right, of course our economy will be fine in the long run. We recovered from the Depression right? It's what's happening right now that hurts.
THE PRESIDENT: Mr. Secretary, thank you very much for coming by today to talk about the economic situation -- we'll be meeting later on this afternoon with the President's Task Force on Financial Markets.
First of all, the Secretary has given me an update. One thing is for certain -- we're in challenging times. But another thing is for certain -- that we've taken strong and decisive action. The Federal Reserve has moved quickly to bring order to the financial markets. Secretary Paulson has been -- is supportive of that action, as am I. And I want to thank you, Mr. Secretary, for working over the weekend. You've shown the country and the world that the United States is on top of the situation.
Secondly, you've reaffirmed the fact that our financial institutions are strong and that our capital markets are functioning efficiently and effectively. We obviously will continue to monitor the situation and when need be, will act decisively, in a way that continues to bring order to the financial markets.
In the long run, our economy is going to be fine. Right now we're dealing with a difficult situation and, Mr. Secretary, I want to thank you very much for your steady and strong and consistent leadership.
Thank you very much.
END 9:41 A.M. EDT
Pretty soon, they are going to foreclose on the undelivered FEMA trailers and then what? Too bad George can't think past saving his pals in big business. If he was so keen to screw the little guy by routing the Chapter 11 laws, why wouldn't they have let Bear Sterns sink in it's own sauce?
When it gets right down to it, we see the President and his staff doing the time honored W, Rove and Co thing, saving their friends asses, screwing the little guy, and then blaming some one else for the economy they delivered.
Q For people who are losing their homes, or losing their jobs, and then they see the government helping engineer this $30 billion line of credit for Bear Stearns, and help for other financial investment firms on Wall Street, how do you reconcile the two?Right, so they are suggesting the 300 or 800 so dollars you and I get are the equivalent of the multi-billion dollar bail out of the investment industry? Right. When was the last time Reagan applied strategy of "trickle down economics" actually worked to help leverage the little guy up out of an economic hole she or he didn't create?
MS. PERINO: Well, the way I would answer that question is in two parts. One, this isn't about bailing anyone out. These actions are intended, as I said earlier today, to minimize financial market disruptions. And investors in Bear Stearns are taking large and significant losses in this transaction. And that's not what happens in a bail-out. They bought into a company, they took a financial risk -- and it had paid off quite well for them a while ago, but today they're looking at a stock that's only worth $2. And the Fed, what they did last night, is try to provide liquidity to the markets so it would stabilize, and we could have orderliness in the system.
But I would also say that a major market disruption would have very damaging consequences and be very painful for everybody, from the small business owner to the homeowner, for everybody all the way up and down the economic food chain. And the goal here is to prevent a major disruption in financial markets. And the Fed is taking decisive action when necessary, and that is what they saw last night.
In addition to that, homeowners and small business owners and everyone across America needs to know that we've acted on multiple fronts, starting back in August -- that was when the President recognized that we might be heading into some headwinds in the economy, with several different aspects of it. And if you look back consistently over those past several months, he has said that we needed to take some action. And over time, we proposed legislation, dealing with the housing market. We also worked with the private sector to help homeowners, through HOPE NOW, and then Project Lifeline. We supported legislation that would not penalize people for writing down mortgage debt when they did a refinancing. And that finally became law.
We haven't had Congress act on one of the most important things they could do, which is Federal Housing Administration -- changes in reforms that we've asked for. It's been about seven months since the President first announced that, and Congress is now and again on a two-week recess, and nothing is going to happen.
But at the same time, back in January, the President said, when we worked on the stimulus package, that the reason that we're doing that is because we could see in the future there could be a potential downturn in the economy. And so if things were to get worse, we would have a stimulus package in effect. We called that, remember, an insurance policy, a booster shot, that we said would take effect and have impact later in the summer. And the President and Congress were right to work together on that bipartisan package, because those tax rebates will be going out to people all across the country, including the homeowners that you talk about.
Q But, Dana, how does this square with sort of traditional conservative economic principles of limited government involvement in terms of, sort of, maybe culling the herd a little bit, letting the firms that are going to fail, fail, and thus more can sort of live on the back end?
MS. PERINO: Well, I would point out again that, remember, investors -- Bear Stearns basically went from a company that was doing quite well to failure, and at $2 a share, I should think that those investors are seeing -- feeling today the consequences of that risk in a marketplace. But I would remind you that what's right for the markets and stability for the financial system had to be taken into consideration. And that's what the Fed decided to do, is to act quickly, to act decisively, to make sure that we could provide what's needed right now, which is stability and liquidity and orderliness.
And the Treasury Department is able to answer lots more of detailed questions, and the Fed certainly on historical questions in this matter.
Q But people who are facing, say, foreclosure, the individuals, the little guys who are facing a foreclosure are looking at the big guys getting government, if not brokered, certainly they're overseeing deals that are engineered to sort of keep the big picture financial community afloat, and they're saying, well, where's my boost of liquidity?
MS. PERINO: They're going to get that boost of liquidity in the form of a stimulus package and a tax rebate that's coming to them the second week of May.
Q But that's not going to save their houses.
MS. PERINO: The other way to help work on the housing issues is to take advantage of some of the programs that we have in place, to talk with HOPE NOW or Project Lifeline, for those who are in more serious dire straits, and also to work -- for us to continue from the administration to call on Congress to finally take action on Federal Housing Administration reforms, which we think are necessary to help homeowners across-the-board.
But I would remind you, and remind consumers all across America, that the decisive action taken by the Fed yesterday was precisely to prevent long-term economic harm to everybody in the United States, including, as you said, the little guy.