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Obama Touts Model For Recovery

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The Associated Press

Published: March 14, 2009

WASHINGTON - Turning more upbeat, President Barack Obama said Friday his administration is working to create a "post-bubble" model for solid economic growth once the recession ends. He said that means the days of overheated housing markets and "people maxing out on their credit cards" are over.

But first, Obama said, "We've got to get through this difficult period."

There are "modestly encouraging signs" on that score, said Lawrence Summers, Obama's top economic adviser, citing indications that consumer spending had stabilized after taking a dive during the holiday season.

Despite the enthusiasm at the White House and on Wall Street, there was little solid evidence to suggest an end was in sight to the severe recession that has already cost the U.S. more than 4 million jobs, driven home values down and sent foreclosures soaring.
Private economists agree that it's too soon to declare recovery is on the way.

"As long as we are losing over 600,000 jobs per month, consumers are not going to be able to sustain consumer spending," said Mark Zandi, chief economist at Moody's Economy.com.

The White House has been on a weeklong campaign to promote the president's economic recovery and financial stability plans.

Obama spoke with reporters after meeting with former Federal Reserve Chairman Paul Volcker, chairman of his Economic Recovery Advisory Board.

"There are a lot of individual families who are experiencing incredible pain and hardship right now," Obama said. "But we're providing help along the way." He mentioned aid for troubled homeowners and other moves and promised to soon lay out "additional steps to help small businesses."

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