The economy didn't falter overnight, "and it's going to take a while for the credit system to thaw," Bush said just before the markets opened, speaking across a park from the White House at the U.S. Chamber of Commerce building, a symbolic headquarters of American business.
Despite a flurry of radical actions by the Bush administration and the Federal Reserve, banks in the United States and abroad are still wary of lending money to each other and to their customers. The credit clog is depriving the wheezing U.S. economy of oxygen.
Financial and credit problems have dragged on for more than a year and took a dangerous turn for the worse last month. All the fallout threatens to plunge the U.S. economy — as well as the world economy — into a painful recession.
That has led to erratic trading on Wall Street, where the Dow Jones industrials have swung widely, slashing a trillion dollars of wealth from the markets one day, only to pile some of it back on the next. The Dow fell more than 200 points shortly after opening on Friday, then recovered slightly.
Bush defended the recent deep government intrusions into private business, which would have been extraordinary for any U.S. administration but have been particularly so for a Republican president.
"I would oppose such measures under ordinary circumstances," Bush said. "But these are not ordinary circumstances."
Seeking to calm fearful investors, Bush said the steps are "big enough and bold enough to work."
From The Associated Press
Do you agree with the President? Are these steps actually going to work? Are we already in a recession? If you think so, how long do you think it will take us to get out of it? Voice your opinion: click “Comments” below.
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