Shaky time for Bush economic aides
Ap, Washington
Gyrating stock prices. Shrinking nest eggs. Spiking foreclosures on home mortgages. Worries that credit will dry up. It's a high-wire balancing act for the Bush administration's top economic officials as they cope with Wall Street's recent turbulence and the fears and uncertainties left in its wake.While acknowledging the turmoil, policymakers are seeking to project a calming confidence that the country's economic health is fundamentally solid, and the economy will eventually make its way safely through the choppy waters. They're being careful not to make the problems sound worse than they are, which could spread panic and aggravate the situation. At the same time, they don't want to sound too much like a cheerleader, which can undermine credibility. "It is a very delicate dance," said Richard Yamarone, economist at Argus Research. "They definitely want to send a message they are watching. But they don't want to overdo it," he added. The carnage on Wall Street last week left the Dow Jones industrials down more than 585 points, its worst week in five years. The culprit: investors' heightened anxiety that troubles in the housing and home-mortgage markets could spread. Anxiety lingered Monday even as the Dow finished the day up 92.84 points. Treasury Secretary Henry Paulson was measured and reassuring in his comments Friday, one day after the Dow suffered its second-biggest loss of 2007.
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