Obama says `little doubt' country in recession
Quote:
By GLEN JOHNSON, Associated Press Writer 1 hour, 12 minutes ago
SAN DIEGO - Barack Obama said Saturday there is "little doubt we've moved into recession," underscoring the country's need for a second economic stimulus package, swift steps to shore up the housing market and a long-term energy policy to reduce reliance on foreign oil imports.
In addition, Obama lifted the veil on his upcoming trip to European capitals and U.S. battlefronts in Iraq and Afghanistan.
He said he would be accompanied by Sen. Chuck Hagel, R-Neb., and Sen. Jack Reed, D-R.I. Despite their differing political parties, each has been mentioned as a potential Obama vice president
tial running mate.
"I have little doubt that we've moved into recession at this point, and the sooner we can get money into people's pockets, the sooner that we can stabilize the housing market, and the sooner that we can send a message to the markets that we're serious about creating an energy policy that will create greater energy efficiency over the next decade or so, I think the sooner we're going to get our fundamentals right," he said.
_Said he has been closely monitoring the financial health of mortgage providers Fannie Mae and Freddie Mac. Concerns falling home values may require a government bailout prompted a Wall Street sell-off Friday before markets recovered.
"There are a lot of different definitions of what a `bailout' would look like," Obama said. "There are issues related to the short-term liquidity — can they borrow money? — versus issues related to whether the underlying assets of the two corporations are really unsound. And I think we need to watch carefully and see how it plays out before we make a decision about which steps need to be taken."
Obama says `little doubt' country in recession - Yahoo! News
I suppose there are several aspects to this:
1. He wants to discredit the republicans by calling a spade a spade (woops, that wasn't a racist comment) It may not fit the classic definition of a recession, but I think it's close enough to have merit, and it discredits Bush and to some proxy extent, McCain.
2. He'll try to paint himself as the change agent to reform the mortgage and housing crises. Good luck on this.
3. Energy crisis. Again, he'll continue to hammer that McCain represents the same old thinking, and he represents change.
Good strategy overall, and Obama is finally starting to aggressively go after McCain with these moves.
Bush remains upbeat on economy
:rofl:
All signs are pointing to a further downturn in the US economy but the president has said that the economy will bounce back.
Even as George Bush spoke on Tuesday, however, the dollar plunged to a new low against the euro, while the price of oil continued to fluctuate wildly.
Ben Bernanke, the Federal Reserve chairman, had told congress earlier in the day that the fragile US economy was facing "numerous difficulties'' including persistent strains in financial markets, rising unemployment and housing problems.
Bernanke, who was testifying before the senate banking committee, sounded another warning that rising prices for energy and food were increasing inflation risks.
Despite Bernanke's remarks, Bush expressed confidence in the US economy, saying the country would emerge "stronger than ever before" from its current slump.
"We're going through a tough time, but our economy is growing, consumers are spending, exports continue increasing and American productivity remains strong," Bush said.
On Sunday, the US government announced a plan giving the companies, who underpin about half of all US home loans, access to Federal Reserve credit and a temporary increase, pending congressional approval, of their lines of credit from the US treasury.
Al Jazeera English - Americas - Bush remains upbeat on economy
Oh George. :gwbush: What an embarassment.
