President Bush Voices Optimism About Economic Outlook

Thursday, September 20th 2007, 7:52 am
By: News On 6

WASHINGTON (AP) _ President Bush on Thursday cited ``some unsettling times'' in the U.S. housing and credit markets as he sought to assure jittery Americans that the economy basically is in good shape despite worries about a recession.

``I say that the fundamentals of our nation's economy are strong,'' Bush told a White House news conference.

Bush said that inflation is down, markets are steady, unemployment is relatively low, exports are up and corporate profits ``seem to be strong.''

``There is no question there are some unsettling times in the housing markets and credits associated with the housing market,'' the president told reporters at a White House news conference. But he said he didn't see that spreading to the broader economy.

Some economists suggest the housing slump could lead to a recession even in spite of action earlier this week by the Federal Reserve to cut short-term interest rates by a half-percentage point.

Bush said he was optimistic about the economy. ``I would be pessimistic if I thought Congress was going to get their way and raise taxes,'' he added.

Pressed on whether he was concerned that the nation was nearing a recession, Bush said, ``You need to talk to an economist.''

On the subject of Iraq, Bush said there was progress in local communities in Iraq but that people are disatisfied with the central government.

``Part of the reason why there's not this instant democracy in Iraq is because people are still recovering from Saddam Hussein's brutal rule. Sort of an intersting comment, I heard somebody say, `Where's Mandela?' Well, Mandela's dead because Saddam Hussein killed all the Mandelas.''

It was a reference to the charismatic former leader of South Africa who helped reconcile his country after decades of racial division. Mandela is still alive.

Bush opened the news conference with a statement challenging Democrats on their proposal for a $35 billion increase in a children's health insurance program. Bush has threatened to veto the bill.

Watch the video: President Bush Seeks Renewal Of Children's Health Insurance Program
The $35 billion increase for the State Children's Health Insurance Program, called SCHIP, would bring total spending to about $60 billion, or twice the level sought by the administration.

The president urged lawmakers to send him a simple extension of the current program _ which expires at the end of this month _ if both sides cannot agree on terms of a new measure.

``Members of Congress are putting poor children at risk so they can score political points in Washington,'' Bush said. He said that ``more than a million children could lose health coverage'' if the program is allowed to expire.