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Obama offers hope but warns US hard times are not over
Paul Thompson15 Apr 2009
BARACK OBAMA has pointed to "glimmers of hope" in the US economy but warned the country was "by no means out of the woods just yet".
The US president said there were more job cuts on the way, and that many Americans would face painful economic choices in the months ahead.
But in what was billed as a "major speech" on the US economy by White House officials, the President delivered a mixture of reality and optimism on the struggling economy. He said: "There's no doubt that times are still tough. By no means are we out of the woods just yet.
"But from where we stand, for the very first time we're beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of America's future that is far different than our troubled economic past."
His speech to students at Georgetown University in Washington DC was a direct attempt to refocus Americans on his efforts to rescue the economy following his first major overseas trip. The eight-day overseas visit to the G20 summit in London had dominated his agenda - but aides said Mr Obama wanted to concentrate on showing how his $800billion stimulus package was having a positive effect.
He said schools and police departments have cancelled lay-offs, clean energy companies and construction firms are rehiring workers and some homeowners are refinancing at lower interest rates.
"This is all welcome and encouraging news, but it does not mean that the hard times are over," the President said, adding: "2009 will continue to be a difficult year for America's economy. The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends."
Mr Obama referred to a parable from the Sermon on the Mount to describe the challenge that confronts Americans.
"We cannot rebuild this economy on the same pile of sand," he said. "We must build our house upon a rock."
While the President said America was not totally safe, the chairman of the Federal Reserve agreed that there were signs the recession is easing. In a speech to a university in Atlanta, Ben Bernanke called the current crisis "one of the most difficult financial and economic episodes in modern history". But he said he was "fundamentally optimistic" about the economy.
"Recently we have seen tentative signs that the sharp decline in economic activity may be slowing," he said.
