Glory
March 17th, 2008, 04:22 PM
President Bush, trying to calm turmoil in financial markets after a dramatic weekend, declared
Monday that his administration is "on top of the situation" and dealing decisively with the slumping economy.
"One thing is for certain, we're in challenging times," Bush said after meeting with Treasury Secretary Henry Paulson and other senior economic advisers. "But another thing is for certain: We've taken strong, decisive action."
Bush spoke as the financial markets absorbed the stunning news that 85-year-old Wall Street powerhouse Bear Stearns had agreed to be acquired by rival JPMorgan Chase for the fire-sale price of $2 a share. Bear Stearns, which traded at nearly $160 a share less than a year ago, collapsed after losing billions of dollars on mortgage-backed securities.
Bush commended the Federal Reserve for its urgent actions over the weekend, which included guaranteeing financing for the Bear Stearns deal and making available more credit to Wall Street investment banks. Fed policymakers are scheduled to meet again Tuesday and are expected to lower a key short-term interest rate by as much as three-quarters of a percentage point.
The White House moved quickly to raise Bush's public profile Monday, and he continued to send an upbeat message, even in acknowledging a downturn that keeps roiling the economy and the country's people as well.
Bush said "our financial institutions are strong" and "our capital markets are functioning efficiently and effectively." He praised Paulson for working with the Fed and showing "the country and the world that the United States is on top of the situation."
Still, Bush said the administration is monitoring economic developments closely.
"When need be, we'll act decisively in a way that continues to bring order to financial markets," Bush said.
He did not indicate any other steps the government might take, or when.
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Monday that his administration is "on top of the situation" and dealing decisively with the slumping economy.
"One thing is for certain, we're in challenging times," Bush said after meeting with Treasury Secretary Henry Paulson and other senior economic advisers. "But another thing is for certain: We've taken strong, decisive action."
Bush spoke as the financial markets absorbed the stunning news that 85-year-old Wall Street powerhouse Bear Stearns had agreed to be acquired by rival JPMorgan Chase for the fire-sale price of $2 a share. Bear Stearns, which traded at nearly $160 a share less than a year ago, collapsed after losing billions of dollars on mortgage-backed securities.
Bush commended the Federal Reserve for its urgent actions over the weekend, which included guaranteeing financing for the Bear Stearns deal and making available more credit to Wall Street investment banks. Fed policymakers are scheduled to meet again Tuesday and are expected to lower a key short-term interest rate by as much as three-quarters of a percentage point.
The White House moved quickly to raise Bush's public profile Monday, and he continued to send an upbeat message, even in acknowledging a downturn that keeps roiling the economy and the country's people as well.
Bush said "our financial institutions are strong" and "our capital markets are functioning efficiently and effectively." He praised Paulson for working with the Fed and showing "the country and the world that the United States is on top of the situation."
Still, Bush said the administration is monitoring economic developments closely.
"When need be, we'll act decisively in a way that continues to bring order to financial markets," Bush said.
He did not indicate any other steps the government might take, or when.
continue story
http://news.mobile.msn.com/en-us/articles.aspx?afid=1&aid=23673100