Bush sees 'hangover' effect on market
By William L. Watts, CBS.MarketWatch.com
Last Update: 1:12 PM ET July 15, 2002
BIRMINGHAM, Ala. (CBS.MW) -- President Bush attempted to reassure Americans on the state of the economy Monday, saying the nation's economic fundamentals are sound but masked by the "hangover" from the "economic binge" of the 1990s.
"In order for us to have the security that we all want, America must get rid of the hangover that we now have as a result of the binge, the economic binge, we just went through," Bush said in a speech in Birmingham, Ala.
The pep talk failed to soothe stock markets as the Dow Jones Industrial Average ($INDU: news, chart, profile) surrendered 329 points, or 3.8 percent, to 8,355 in afternoon trading. That marks a nearly 1,000-point loss since the July 5 close and the blue-chip gauge's lowest level in 10 months.
The Nasdaq Composite edged down 1.1 percent, or 15 points, to 1,358.
Bush said the fundamental U.S. backdrop remains favorable.
"It has got the foundations for growth. This economy is coming back," he said, citing low inflation and "reasonable" interest rates.
Bush also used the speech to reiterate calls for corporate reforms. The Senate was expected on Monday to overwhelmingly pass a Democratic-backed bill on corporate accountability.
That package must be reconciled with a less far-reaching set of measures passed by the Republican-controlled House in April.
He called on lawmakers to send him a final bill before they leave for their August recess.
Bush also lectured corporate executives again to emphasize ethical standards.
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William L. Watts is a reporter for CBS.MarketWatch.com. |
