Bush: Bank system 'basically … sound'

[Ron Burgundy]

Politico - Amid fears of a galloping financial crisis, President Bush said this morning that he thinks America's banking system is “basically … sound.”

“My hope is that people take a deep breath and realize that their deposits are” insured, Bush said at his first formal news conference since the end of April. .“I understand there's a lot of nervousness.”

About government assurances to shore up the massive lenders Fannie Mae and Freddie Mac, he said: “I don't think it's a bailout – the shareholders still own the company.”

Bush was asked by April Ryan of American Urban Radio Networks when he expects a turnaround in the soft economy, and when it will be strong again.

“When will the economy turn around?” he repeated. “I'm not an economist. But I do believe that we're growing.”

Bush added that the economy is “not growing as fast as it should be,” saying that “good policy” is the solution.

Asked if it will change while he's still president, Bush said: “I certainly hope it changed tomorrow. I'm also realistic to know that things don't change on a dime.”

Bush called this a “time of uncertainty.”

Bush leavened a series of heavy questions with light asides. When a reporter referred back to a previous question without giving the topic, the president joked: “I'm 62 – I'm having trouble remembering things.”

source: http://news.yahoo.com/s/politico/20080715/pl_politico/11757 [link]