- Location
- Grand Marais, MN
WASHINGTON - The White House throttled back its description of the U.S. economy on Wednesday, labeling it resilient enough to withstand some shocks to the system but refusing to say it is fundamentally sound — the phrase that has jolted the race for the presidency.
At an quickly called White House press meeting today to address the rapidly deflating economic picture, Press secretary Dana Perino said "it's not clear-cut," but didn't offer any perspective or plans.
"Our economy might still have the strength to be able to deal with these shocks," Perino said as financial markets were still reeling from corporate meltdowns.
The economic language that emerges from the White House is always important. It sends messages to the markets and to the masses. And it is designed to find a balance of boosting consumer confidence while also being candid enough to prevent President Bush from appearing out of touch.
When Republican presidential candidate John McCain declared Monday that "the fundamentals of our economy are strong," it drew ridicule from Democratic opponent Barack Obama and his surrogates. McCain later said he meant that the fundamental strength of the American worker remained strong.
In fact, the phrase and variations of it long have been a favorite of Bush's. "I believe the foundations of this economy are strong," he said on July 31.
Given the political atmosphere, Perino declined to say whether the White House still stood by the statement. She deflected or offered silent response to specific questions on how the fiscal torpedo that exploded this afternoon will effect the nation.
"I recognize that this issue of `strength' has come into the 2008 election," she said. "I'm not going to try to get involved in it."
Even when reporters asked for the president's view of the economy regardless of the McCain-Obama race, Perino would not bite. "I know as soon as I say something you're going to turn it around and it will be a part of the 2008 campaign," she said. "I'm not going to play the game."
The last few weeks have seen enough Wall Street turmoil and corporate collapses to prompt a blitz of federal interventions under Bush's watch. It is the kind of taxpayer-supported help for the private sector that might seem at odds with Bush's conservative, free-market economic philosophy.
But Bush and his economic advisers say the government has stepped in to try to keep taxpayers from facing the potential of even worse problems.
The White House on Wednesday defended the latest action, an $85 billion emergency loan for insurance giant American International Group Inc. The government gets almost an 80 percent stake in the company, the most far-reaching intervention into the private sector ever for the Federal Reserve.
AIG teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued.
"While no one would have liked to have ended up in this situation, you have a government that is willing to lead," Perino said.
Bush however, was not willing to talk about it.
He has not fielded questions about the economic upheaval this week and even canceled a statement Tuesday. Reporters have tried each day. When one tried to press Bush in the Oval Office on Wednesday, he said he could not hear the question, and then made light of the moment by saying, "I'm old."
Reporters calls to the Department of Treasury and the Securities and Exchange Commission haven't been returned and the gallery of reporters at the White House this afternoon asked Ms. Perino if there was a problem on the government's switchboard. She responded with a terse announcement that "This meeting is over" an expected 30 minutes before the end of the announced gathering.
At an quickly called White House press meeting today to address the rapidly deflating economic picture, Press secretary Dana Perino said "it's not clear-cut," but didn't offer any perspective or plans.
"Our economy might still have the strength to be able to deal with these shocks," Perino said as financial markets were still reeling from corporate meltdowns.
The economic language that emerges from the White House is always important. It sends messages to the markets and to the masses. And it is designed to find a balance of boosting consumer confidence while also being candid enough to prevent President Bush from appearing out of touch.
When Republican presidential candidate John McCain declared Monday that "the fundamentals of our economy are strong," it drew ridicule from Democratic opponent Barack Obama and his surrogates. McCain later said he meant that the fundamental strength of the American worker remained strong.
In fact, the phrase and variations of it long have been a favorite of Bush's. "I believe the foundations of this economy are strong," he said on July 31.
Given the political atmosphere, Perino declined to say whether the White House still stood by the statement. She deflected or offered silent response to specific questions on how the fiscal torpedo that exploded this afternoon will effect the nation.
"I recognize that this issue of `strength' has come into the 2008 election," she said. "I'm not going to try to get involved in it."
Even when reporters asked for the president's view of the economy regardless of the McCain-Obama race, Perino would not bite. "I know as soon as I say something you're going to turn it around and it will be a part of the 2008 campaign," she said. "I'm not going to play the game."
The last few weeks have seen enough Wall Street turmoil and corporate collapses to prompt a blitz of federal interventions under Bush's watch. It is the kind of taxpayer-supported help for the private sector that might seem at odds with Bush's conservative, free-market economic philosophy.
But Bush and his economic advisers say the government has stepped in to try to keep taxpayers from facing the potential of even worse problems.
The White House on Wednesday defended the latest action, an $85 billion emergency loan for insurance giant American International Group Inc. The government gets almost an 80 percent stake in the company, the most far-reaching intervention into the private sector ever for the Federal Reserve.
AIG teetered on the edge of failure because of stresses caused by the collapse of the subprime mortgage market and the credit crunch that ensued.
"While no one would have liked to have ended up in this situation, you have a government that is willing to lead," Perino said.
Bush however, was not willing to talk about it.
He has not fielded questions about the economic upheaval this week and even canceled a statement Tuesday. Reporters have tried each day. When one tried to press Bush in the Oval Office on Wednesday, he said he could not hear the question, and then made light of the moment by saying, "I'm old."
Reporters calls to the Department of Treasury and the Securities and Exchange Commission haven't been returned and the gallery of reporters at the White House this afternoon asked Ms. Perino if there was a problem on the government's switchboard. She responded with a terse announcement that "This meeting is over" an expected 30 minutes before the end of the announced gathering.
