In a recent speech to The Economic Club of New York, President Bush made comments addressing the economy and the state of the US housing market. He confirmed that that the economy was suffering and also said he believed the country's economy would ride out these troubles.
Bearing this in mind, many economists feel that the housing sector is the largest factor in holding back the economy. Yet President Bush also made it clear that he opposes several proposed solutions to the problem.
Key troubles are seen in the US economy currently. The dollar's value continues to fall and gold as well as oil have both reached record highs. More so, the economy has seen job losses and retail sales bottom out. Many of these things, economists believe, are due to the housing market's fall and the credit squeeze that followed soon after.
Bush has been faced with opposition in his measures to address the problem. There are several proposals on the table which he does not back. This includes a plan to provide US $400 billion to be used to purchase abandoned and foreclosed properties by local and state governments and a plan to change the bankruptcy code to allow judges to change mortgage rates and prop up home prices. Bush says these measures will not help the mortgage companies or the financial markets.
In comments reported by the Associated Press, Bush said, "It's important not to overcorrect, because when you overcorrect, you end up in a ditch. It's important to be steady."