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President Bush Tries To Boost Morale About Economy

(KDKA) With all the financial numbers looking bad and many people worried about the future, President Bush decided it was time to step in and pump up public morale today.

"I think the system basically is sound," said President Bush. "I truly do."

Call it a national pep rally, the President tried to change the public mood about the economy by emphasizing the positive at a news conference.

"Bottom line is this, we're going through a tough time. But our economy is continuing growing, consumers are spending, businesses are investing, exports are increasing and American productivity remains strong," he said. "We can have confidence in the long-term foundation of our economy and I believe we will come through this challenge stronger than ever before."

But the President says he understands how Americans are being hurt especially by high gasoline prices, but he can't solve that problem overnight.

"The President doesn't have a magic wand, you can't just say, 'Low gas,'" President Bush said. "It took us a while to get here and we need a good strategy to get out of it."

The White House strategy is to lift restrictions on drilling off-shore.

"I readily concede that it's not going to produce a barrel of oil tomorrow, but it is going to change the psychology," he said.

President Bush once again called on Congress to increase drilling in America.

As for the banking system, the President said not to worry about deposits.

"The depositor must understand that the federal government and the FDIC stands behind the deposit up to a $100,000 and therefore that leads me to say if you're a depositor you're protected by the federal government," President Bush said.

At a Senate hearing today, Senator Bob Casey read comments from a Centre County woman to Federal Reserve Chairman Ben Bernanke.

"Quote, 'Pretty much we have reprioritized, the house payment is first, then day care, then we worry about gas, then food,'" read Sen. Casey.

Casey asked if the government still insisted that we were not in a recession.

"I certainly would never make the claim that even if we were not in a technical recession that it was not a serious situation," said Bernanke. "I just want to assure you that everything the Federal Reserve does is intended to promote the welfare of the average American."

President Bush, for his part, said Americans are strong enough to cope.

"As much as I regret that the gasoline prices are high, and they are, I also understand that people are going to make adjustments to meet their own needs," he said.

But despite the President's reassuring words, one local financial advisor says too many Americans are no longer listening to him.

"I definitely think it's harder for this President to reassure us that things are okay because he has lost a lot of credibility over the years, so it's unfortunate," said Carrie Coghill Kuntz.

Economists say that it is how the public perceives their own lives and financial resources that really dictates whether folks buy, invest and grow the economy.

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