how can we be expected to agree with this man's opinion regarding the numbers that he's supposedly monitoring? i'm skeptical.. after all, it doesn't come w/ one of those new fancy certifications. Maybe he should re-examine the recently revised GDP figure...
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O'Neill Says U.S. Gov't Mending Economy
Reuters Business Report ; Saturday August 3, 1:22 am Eastern Time
WASHINGTON (Reuters) - U.S. Treasury Secretary Paul O'Neill on Saturday sought to reassure investors who have seen their retirement accounts shrink after a wave of corporate scandals that the government is making the repairs it needs to ensure the economy remains sound.
In an opinion piece published in The Washington Post, O'Neill said the U.S. economy remains fundamentally strong despite the recent sharp drop in stock prices.
"We have had two straight quarters of solid growth. Consumer spending has stayed strong and business investment is picking up. As our economy continues to grow at a healthy pace, Americans will see their incomes and their retirement accounts grow as well," he said.
New government statistics show the U.S. economy grew at a seasonal rate of just 1.1 percent in the second quarter, down from 5 percent in the first.
The lackluster second-quarter performance has fueled fears the economy could dip back into recession.
O'Neill has been criticized in recent weeks for not doing enough, as the Bush administration's chief economic spokesman, to help buoy the markets.
However, the former business executive said the economy spoke for itself.
"Confidence in our financial markets ... does not come from talking heads on television. It derives from the economic fundamentals, which today are strong," he said.
Even so, O'Neill took pains to assure investors that United States is "adjusting" to the problems it faces, "making needed repairs and moving forward."
He cited President Bush's recent signing of legislation to improve corporate accountability and auditor oversight, efforts to create a new Department of Homeland Security and Congress' approval of a bill to open new markets for U.S. exports through trade negotiations.
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