Transcripts

President Bush's Economic Optimism Is Lost On Wall Street

SUSIE GHARIB: Encouraging words about the U.S. economy today from President Bush, but stocks on Wall Street fell sharply on concerns about inflation and recession. Speaking in Virginia, the president said the economy is quote, pretty good, but he acknowledged that there are definitely quote, some storm clouds, including rising home foreclosures and slower consumer spending. He also warned that higher taxes would undermine economic growth, adding that he would veto any plan by Congress to raise taxes.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There are some positive things Congress can do to make sure that the economy continues to grow and people are working and realizing dreams. And there are some negative things they can do. And the most negative thing that Congress can do in the face of some economic uncertainty is to raise taxes on the American people.

GHARIB: But Democratic lawmakers like Senator Chuck Schumer don't share the president's optimism.

SEN. CHARLES SCHUMER (D) NEW YORK: It feels a little bit like the movie "Groundhog Day" where Bill Murray keeps reliving the same day over and over again. It's Groundhog Day because day after day, President Bush tells the American people that the economy is strong, while more and more of the indicators point in an opposite direction.

GHARIB: Another critic of the president's economic outlook, Alan Greenspan. The former chairman of the Federal Reserve thinks the economy is showing early signs of stagflation but Treasury Secretary Henry Paulson disagrees. Speaking today he called the economy fundamentally sound and sees continued growth.