Will wonders never cease? First, Hillary Clinton proves the media wrong and wins the New Hampshire presidential primary with a comfortable number of votes just 24 hours after some polls said she would lose by as much as 15 percent.
And now, George W. Bush has finally come to recognize what most of the world already knew–the economy is sick and the primary cause is the subprime mortgage debacle.
Bush actually has said that he is watching the U.S. economy carefully now (wasn’t he doing that before?) to help him decide whether the federal government needs to do more before the ship of state takes on too much water.
Of course, Bush is not one to come out and just say, Hey, I was wrong! But, this comes close: “I’m optimistic, as I’ve seen this economy, you know, go through periods of uncertainty,”Bush said. “I like the fundamentals, they look strong, but there are new signals that should cause concern. And, one of the signals is the fact that the housing market is soft.”
Well, yeah! Guess you could say the housing market is soft: the value of homes all across the country has gone down;more and more homeowners find themselves in foreclosure or are about to be;and, the credit market is tighter than a clam shell.
So,yeah,guess you can say the housing market it soft.
And, the President admits this is no short term crisis : ” It’s going to take awhile to work through the downturn,” said Bush.
In another sign that the administration is starting to sweat it, Treasury Secretary Henry Paulson told CNBC the administration is thinking about new ways to help some borrowers who will take a beating from adjustable rate mortgages.
It is, of course, welcome news that the President now understands there is a real problem here. Too bad he didn’t come to that realization months ago.