March 13, 2009
Posted: March 13th, 2009 03:17 PM ET
The president met with Paul Volcker Friday.
The president met with Paul Volcker Friday.

WASHINGTON (CNN) - President Barack Obama continued to hammer home a "back-to-basics" economic message Friday, saying that U.S. markets, while fundamentally sound, need a systemic overhaul of financial-sector regulations to ensure a "post-bubble" model of future growth.

The president also reiterated his claim that sustainable long-term growth will not be possible without a restructuring of the nation's health-care, energy, and education systems.

America still has the "most dynamic free-market economy on Earth," Obama said in an Oval Office meeting with one of his top economic advisors, former Federal Reserve Chairman Paul Volcker.

But the country needs to "go back to fundamentals. And that means driving our health-care costs down. It means improving our education system so our children are prepared and we're innovating in science and technology. And it means that we're making this transition to the clean-energy economy.

"Those are the priorities reflected in our budget, and that is part and parcel with the short-term steps that we're taking to make sure that the economy gets back on its feet."

The president once again emphasized that the administration is "spending every day working through how to get credit flowing again so that businesses, large and small, as well as consumers, are able to obtain credit and ... get this economy moving again."


The administration's plan for easing the credit crunch, while still vague, appears to involve enticing private investment firms to borrow billions from the federal government to buy up toxic investments from troubled banks.

On the housing side, the Obama plan calls for companies to help struggling borrowers change their mortgage-loan terms, but it applies only to those whose payments are less than 31 percent of their monthly income, or about 4 million people.

In a different initiative, about 5 million homeowners who haven't missed a payment can refinance into lower-cost loans even if they have little or no equity.

Earlier Friday, National Economic Council Director Larry Summers said it is still unclear how long it will take for a broad-based economic recovery to take hold.

Summers, speaking about the administration's overall economic plan to a packed crowd at the Brookings Institution think tank, admitted that "no one can know just when and how its positive effects will be fully felt."

Summers did say that he sees some early signs that the economic crisis could be starting to ease. He pointed to consumer spending, which collapsed during the holiday season but now appears to be stabilizing.

– CNN's Jennifer Liberto contributed to this report

Filed under: Economy • Obama administration • President Obama


Mike Syracuse, NY   March 13th, 2009 6:17 pm ET

When he was elected I didn't hope he would fail, I just expected that he would. He's living up to expectations. He's so over his head it's pathethic.

Mike Syracuse, NY   March 13th, 2009 6:16 pm ET

AB in MN March 13th, 2009 4:55 pm ET
Saying he has pork is just plain stupid. 40% is from republicans and the other 60% was written in before 1/20/09.

And who controlled Congress which wrote the bill prior to 1/20/09? Why it was the Dems! It's their spending bill, pork and all. Are you saying that we can create a $700 billion stimulus bill from scratch in a few weeks, yet can't figure out how to get earmarks out of this spending bill? It defies belief. Stop making excuses. To say the Dems are spending like drunken sailors is to insult drunken sailors.

Anonymous   March 13th, 2009 6:09 pm ET

Yes the administration is, as quoted, "spending every day".

Isn't there a guy whose sole job it is to stop his boss from making poor word choices?

Rick   March 13th, 2009 5:45 pm ET

Ok James. I will keep working day and night to pay your share. Get off your a$$ something yourself.

Jim   March 13th, 2009 5:41 pm ET

I am still laughing. I cannot believe he can sit there and say we need to return to financial fundamentals. Want to hear the best joke is he says he is going to halve the deficit by 2013 or 533Billion. He is so tight with our money and has the economy going along soooooo well I know we can make that happen.

MOVE ON !!!!!   March 13th, 2009 5:41 pm ET

@Interesting March 13th, 2009 5:07 pm ET
Prez scored a big "F" from those economists that had supported him, interesting!!****Figure out what that F stands for...now that you realize what it stands for ....Point it toward You and the economists

An American   March 13th, 2009 5:31 pm ET

Obama never stops with his speeches. He has just put us in a deep financial hole for years to come (and it not over yet) and he is talking his usual baloney. Blah blah blah. God, is there no end to his phoney statments.

Joe, Georgia   March 13th, 2009 5:19 pm ET

I have read the comments already posted and find it amazing how uninformed most of these people are. The comments are repeats of the misrepresentations of Rush Limbaugh, Bill O'Reilly and Sean Hannity. The stimulus bill does not contain 25 years of liberal policies. Of the total size of the bill, about 40% is tax cuts and the AMT patch. The remainder of the bill is job creating money for roads, bridges, schools and technology or money to support unemployment benefits, health care and other services in growing demand because of the state of the economy. The vast majority of business leaders, economists and thoughtful government leaders believe government stimulus is absolutely necessary in times of economy crisis to jump start an economic recovery and provide a safety net of services. The most frequent criticism of this bill by informed main stream individuals is that it may not be big enough and provide enough infrastructure investment.

Neal   March 13th, 2009 5:14 pm ET

Now I understand Why the Chinese Govedrment is worried. Mr. Oresident. THE DREAM. Dreaming and dreaming.

Kevin B   March 13th, 2009 5:08 pm ET

Sounds like the hounds from hell are all over this blog. The hate for Obama is palpable. I wonder if you folks ever give it a rest.

This guy has been in office less than 90 days and you would think the economic mess started the day he was inaugurated.

The incompetence over the last 8 years was breath taking and you have a nation in tatters economically.

Even if you awoke tomorrow and the american economy was back on its feet and our reputaion world wide was restored, you would still be hating.

get a life..............

Interesting   March 13th, 2009 5:07 pm ET

Prez scored a big "F" from those economists that had supported him, interesting!!

liz   March 13th, 2009 5:06 pm ET

The myth of trickle down economics HAS TO END! The rich do not trickle, they keep their wealth, that will NOT change, people are innately greedy. Ask any sweat shop worker about the trickle down from their millionaire bosses...

Neal   March 13th, 2009 5:05 pm ET

Am I dreaming? Or Is Mr. President saying the samething as Bush?
Oh Mine...? NOOO He is the one that is Dreaming!!! GHe talks And talks and talks> NIce wording Mr President but you say something today, something tomorrow and the next day something diferent. Dreaming again Mr. President?!!
YEAH! I HAD DREAM...

Tom in Delaware   March 13th, 2009 5:01 pm ET

Starting with the President.

Start the investigation into the sub-prime mortgage crisis.

AB in MN   March 13th, 2009 4:55 pm ET

People need to stop looking at the hear and now and start looking into the future. Obama is doing a great job but his ideas are going to take time. Saying he has pork is just plain stupid. 40% is from republicans and the other 60% was written in before 1/20/09. Obama wants to rebuild our health care making it affordable for all. he wants to improve our education so our grandchildren can have a promising future. He wants to rebuild our infastructure so our business model can continue into the future. And yet morons come on here and tear him down. Tear him down because the U.S. isn't rocking again after only 2 months that he's been in office. If anyone says healthcare, education and infastructure is a waste of money you need to move to Cananda. Only Canadians are smart and you won't be welcomed there either.

JP   March 13th, 2009 4:50 pm ET

If he truely wants to reform health care wheres the piece on medical malpractice tort reform. It is estimates that 100 billion is spend on defensive medicine by Dr's. What about card check for unions. Walmarts will have to charge Sak's 5th Ave prices once the lazy union workers are in. THIS GUY IS A SOCIALIST

Ray Fisher   March 13th, 2009 4:46 pm ET

Our economic challenges began by simply ignoring basic finances via deregulation which must be restored before any recovey can begin!!! How can we recovery by giving loans to those without jobs???

Baze   March 13th, 2009 4:39 pm ET

What the heck? "Fundamentals", "back to basics", these sound like McCain/G.O.P. ideals

David   March 13th, 2009 4:38 pm ET

Can we find a descent president that can do both?

Bush was all about action and productivity, but he spoke like a bafoon.

This president is a wonderful oratory, but he's actions create stagnation.

Simmy   March 13th, 2009 4:33 pm ET

Prayer is the key. Learn to turn it, and the door of clarity and truth will open to you. President Obama can do only as much as the Congress lets him. If they continue to resist and use propaganda to promote personal agendas, the country will suffer. The good will go down with the bad.....Pray for your elected officials. Only prayers for the good of all will be answered.

Mustang Allie   March 13th, 2009 4:25 pm ET

You're right, John. The rich DO need to pay their fair taxes – starting with Obozo's buddies!

Casey | Sebastopol, CA   March 13th, 2009 4:19 pm ET

To several of the commentors posted:

"U.S. markets are fundamentally sound" (with a caveat) IS NOT THE SAME as McCain's "the economy is fundamentally strong". You don't get to just make up any quote you want.

Sigh. I get so tired the way ideological demagogues revise history to suit whatever hateful, mean-spirited, speak-don't-think rant they want to promote.

HelloooOOOOO   March 13th, 2009 4:15 pm ET

Now Texas has "stopped" backing school bonds, no one can get paperwork to sign up for unemployment, and people getting killed along our borders and heads cut off and stuffed in ice chests ! How much more must Texas endure before Perry sees that we NEED help down here, and NOT from Chuck Norris either ! He is as bad or worse than RUSH LImbaugh !!!!

John   March 13th, 2009 4:15 pm ET

The tax rate for the wealthy was MUCH higher in the 1950s and 1960s. The rich need to pay their fair shares.

Armando   March 13th, 2009 4:14 pm ET

A sound economy isn't built upon credit. It's build upon production and savings. Economics 101 Mr. President.

Nurse Ratchet   March 13th, 2009 4:14 pm ET

You fools need to look up the word Socialism and stop trying to redefine it. Not ever has Obama suggested the complete take-over of all production, distrubution, etc., etc. As usual you're chasing a Phantom Menace.

I guess you're just as bad at Psychology, Vocabulary, and Economics as you are at Mathematics.

How about The English? Are you have some two?

Raymond   March 13th, 2009 4:13 pm ET

EARTH to OBAMA!!!!

In 60 days you've signed over $1 trillion in NEW government spending that included over 9000 earmarks!!

You've lost all credibility, OblameO. You're the boy who cried wolf, used this economic crisis to ram through 25 years of liberal spending wish-list.

And now you want to talk "basics"?? Sure..... and next week you'll unveil your $1 Trillion Universal Healthcare plan.

Your worse than Hugo Chavez! At LEAST he admits to being a socialist.

no corporate politics   March 13th, 2009 4:12 pm ET

Vague speeches and feel good messages.

The reality is he is in payback mode to his Big Financial Corporate friends. Which ones? Let's ask the Federal Election Commission:

These are actual PAC, bundle, and other euphemisms for corporate money:

Goldman Sachs $955,473
Citigroup Inc $653,468
JPMorgan Chase & Co $646,058
Sidley Austin LLP $565,788
Time Warner $544,601
National Amusements Inc $541,285
Wilmerhale Llp $524,292
IBM Corp $515,249
UBS AG $513,919
Skadden, Arps et al $505,774
Morgan Stanley $485,823
Latham & Watkins $461,511

HelloooOOOOO   March 13th, 2009 4:11 pm ET

it takes JOBS to be fundamentally strong....
JOBS< BABY< JOBS....

Typical White Person   March 13th, 2009 4:10 pm ET

The moonbats will be praising Obama for his insight in declaring the fundamentals strong now that the stock market is 1/2 what is was a year ago and the unemployment rate is hitting double digits in some states.

These are the same bots that declared McCain was stupid for saying the same thing last year when we didn't have double digit unemployment or an additional $1,000,000,000,000 debt for a spending package that does nothing more than spead socialism and increase debt.

bk   March 13th, 2009 4:02 pm ET

McCain got trashed for saying fundamentally sound, but its ok for the incompendent messiah to say anything he wants and people believe him, along with his 9,000 porky projects. What a liar!

how do you do that?   March 13th, 2009 4:02 pm ET

you have soooooooooooo many deals upon deals

back to basics rings hallow

we are still going to support the farmers (that is not free market)
prop up the teachers because of their Union (that is not free market)
prop up the banks (that is not free market)
prop up the car makers (that is not free market)
prop up the sugar industry (that is not free market)
protect the steel industry (that is not free market)

the list goes on and on

if you can demonstrate how this is possible, I am intrigued

I think it is baloney

Anonymous   March 13th, 2009 4:01 pm ET

"fundamentally" sound markets? Is the guy nuttier than originally thought? How much money has he seen go down the stock market tank? That's what I thought.

Kevin in Ohio   March 13th, 2009 4:01 pm ET

Economic fundementals: "Supply and Demand". Nothing from Government addresses this basic fundamental.... on the contrary, government tries to go against it.

ken   March 13th, 2009 4:00 pm ET

Yes, back to basics like spending trillions of borrowed dollars and signing bills filled with earmarks. I can't wait.

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