Obama urges patience, lower expectations on economy
Margaret Talev
Issue date: 4/17/09 Section: Business
President Barack Obama told Americans Tuesday to brace for "more job loss, more foreclosures and more pain" in 2009, saying the recession isn't over yet despite some early promise from the government's massive spending on bailouts and economic stimulus.
In lengthy remarks delivered at Georgetown University, Obama didn't lay out any new proposals, but sought to justify the steps his administration has taken so far and to make the case for more regulation and spending. At the same time, he urged patience and lower expectations for how quickly unemployment numbers will turn around.
As if to underscore his comments, the Commerce Department reported that retail sales fell sharply in March by 1.1 percent after two months of small gains. The unexpected March drop led by still-falling auto sales sent stock prices down, with the Dow Jones Industrial Average losing 137.63 points, or 1.7 percent, to close at 7,920.18. Other market indexes fell similarly.
While addressing American workers, homeowners and investors, the president's timing also suggests that he wants to frame the debate on his terms as members of Congress return to Washington next week from their spring recess.
Upon their return, lawmakers must reconcile House and Senate versions of a $3.6 trillion budget. Obama also is asking them this year to overhaul U.S. health care and to enact a "gradual, market-based" program to reduce greenhouse gas emissions. By year's end, he said, he also wants Congress to pass legislation tightening the regulation of Wall Street and the financial industry.
Another timing consideration: The Treasury's so-called stress tests for the 19 largest U.S. banks, measuring their ability to withstand worse-than-expected conditions, are due at the end of this month. Obama may be trying to brace taxpayers for requests for more assistance to the banks, as his budget anticipated.
"One of my most frequent questions in the letters that I get from constituents is, 'Where's my bailout?' And I understand the sentiment," he said. "But the truth is that a dollar of capital in a bank can actually result in $8 or $10 of loans to families and businesses."
In lengthy remarks delivered at Georgetown University, Obama didn't lay out any new proposals, but sought to justify the steps his administration has taken so far and to make the case for more regulation and spending. At the same time, he urged patience and lower expectations for how quickly unemployment numbers will turn around.
As if to underscore his comments, the Commerce Department reported that retail sales fell sharply in March by 1.1 percent after two months of small gains. The unexpected March drop led by still-falling auto sales sent stock prices down, with the Dow Jones Industrial Average losing 137.63 points, or 1.7 percent, to close at 7,920.18. Other market indexes fell similarly.
While addressing American workers, homeowners and investors, the president's timing also suggests that he wants to frame the debate on his terms as members of Congress return to Washington next week from their spring recess.
Upon their return, lawmakers must reconcile House and Senate versions of a $3.6 trillion budget. Obama also is asking them this year to overhaul U.S. health care and to enact a "gradual, market-based" program to reduce greenhouse gas emissions. By year's end, he said, he also wants Congress to pass legislation tightening the regulation of Wall Street and the financial industry.
Another timing consideration: The Treasury's so-called stress tests for the 19 largest U.S. banks, measuring their ability to withstand worse-than-expected conditions, are due at the end of this month. Obama may be trying to brace taxpayers for requests for more assistance to the banks, as his budget anticipated.
"One of my most frequent questions in the letters that I get from constituents is, 'Where's my bailout?' And I understand the sentiment," he said. "But the truth is that a dollar of capital in a bank can actually result in $8 or $10 of loans to families and businesses."
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