    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book I)]
    [March 15, 2008]
    [Pages 380-382]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    March 15, 2008

        Good morning. On Friday, I traveled to New York City to talk about
    the state of our economy. This is a topic that has been a source of
    concern for families across America. In the long run, we can be
    confident that our economy will continue to grow. But in the short run,
    it is clear that growth has slowed.
        Fortunately, we recognized this slowdown early and took action to
    give our economy a shot in the arm. My administration worked with
    Congress to pass a bipartisan economic growth package that includes tax
    relief for families and incentives for business investment. I signed
    this package into law last month, and its provisions are just starting
    to kick in. My economic team, along with many outside experts, expects
    this stimulus package to have a positive effect on our economy in the
    second quarter. And they expect it to have even a stronger effect in the
    third quarter, when the full effects of the $152 billion in tax cuts are
    felt.
        A root cause of the economic slowdown has been the downturn in the
    housing market. I believe the Government can take sensible, focused
    action to help responsible homeowners weather this rough patch. But we
    must do so with clear purpose and great

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    care, because Government actions often have far-reaching and unintended
    consequences. If we were to pursue some of the sweeping Government
    solutions that we hear about in Washington, we would make a complicated
    problem even worse and end up hurting far more homeowners than we help.
        For example, one proposal would give bankruptcy courts the authority
    to reduce mortgage debts by judicial decree. This would make it harder
    to afford a home in the future because banks would charge higher
    interest rates to cover this risk.
        Some in Washington say the Government should take action to
    artificially prop up home prices. It's important to understand that this
    would hurt millions of Americans. For example, many young couples trying
    to buy their first home have been priced out of the market because of
    inflated prices. The market now is in the process of correcting itself,
    and delaying that correction would only prolong the problem.
        My administration opposes these proposals. Instead, we are focused
    on helping a targeted group of homeowners, those who have made
    responsible buying decisions and could avoid foreclosure with a little
    help. We've taken three key steps to help these homeowners.
        First, we launched a new program that gives the Federal Housing
    Administration greater flexibility to offer refinancing for struggling
    homeowners with otherwise good credit histories. Second, we helped bring
    together the HOPE NOW Alliance, which is streamlining the process for
    refinancing and modifying many mortgages. Third, the Federal Government
    is taking regulatory steps to make the housing market more transparent
    and fair in the long run.
        And now Congress must build on these efforts. Members need to pass
    legislation to reform Fannie Mae and Freddie Mac, modernize the Federal
    Housing Administration, and allow State housing agencies to issue tax-
    free bonds to help homeowners refinance their mortgages.
        Congress also needs to take other steps to help our economy through
    this period of uncertainty. Members need to make the tax relief we
    passed permanent, reduce wasteful spending, and open new markets for
    American goods, services, and investment.
        By taking these steps and avoiding bad policy decisions, we will see
    our economy strengthen as the year progresses. As we take decisive
    action, we will keep this in mind: When you are steering a car in a
    rough patch, one of the worst things you can do is overcorrect. That
    often results in losing control and can end up with the car in a ditch.
    Steering through a rough patch requires a steady hand on the wheel and
    your eyes up on the horizon. And that's exactly what we're going to do.
        Thank you for listening.

    Note: The address was recorded at 7:20 a.m. on March 14 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on March 15. The
    transcript was made available by the Office of the Press Secretary on
    March 14, but was embargoed for release until the broadcast. The Office
    of the Press Secretary also released a Spanish language transcript of
    this address.

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