Bush suggests economy doing OK at the Economic Club of New York

by James Hossack from Yahoo:

NEW YORK (AFP) – President George W. Bush acknowledged Friday that the US economy was going through a tough period but avoided talk of recession, as he sought to reassure voters that better times lay ahead.

Speaking in New York, Bush insisted that despite a weak dollar and soaring oil prices, the US economy remained fundamentally sound and said the biggest challenge was for the US Congress not to overcompensate.

“In a free market there’s going to be good times and bad times. That’s how markets work. There’ll be ups and downs,” Bush told business leaders at the Economic Club of New York.

This sounds more like “Mission Accomplished”. During the C-Span televised event, Bush also made remarks such as the ‘housing crisis is not occurring in all areas of the US’, and the economy ‘will recover and be stronger in the future’.

His statement indicating that the crisis is not occurring everywhere appears he is trying to lessen the appearance of the devastation by localizing it. CNN found that of the 100 largest cities in the US, 86 are facing higher foreclosure rates. Of those, topping the list are Stockton, CA, Detroit, MI, and Las Vegas, NV. States hardest hit include Michigan, Ohio, California, Florida, and Nevada. California and Florida are experiencing record low home prices.

His statement indicating that the economy will recover and be stronger in the future is interesting due to the fact that in less than a year, he will no longer be in office, unless he is impeached before that time. Is Bush showing confidence or hope  that the next president will be able to fix the monumental mess he has created?

RealtyTrac offers the following graph which shows the foreclosure rate increase when compared to the same time in 2007:

foreclosures_chart.gif

RealtyTrac reports that the foreclosure rate, overall, is up 60% when compared to the same time last year.

In response to a recent report from RealtyTrac on the housing crisis: The report suggests that efforts from government and consumer groups to combat the rising number of foreclosures have not had a significant impact, according to Jared Bernstein, a senior economist at the Economic Policy Institute.

“I don’t see evidence that any of the interventions we’ve been implementing are having any effect,” he said. The report “doesn’t show that measures have failed but it’s pretty clear that nothing we’ve undertaken is slowing foreclosures.”

bush-thinking.jpg This all begs the question…Where is Mr. Bush getting his information?

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