____________________________________________________________________________________________
Bush says economy will recover in ‘long run‘
Staff and agencies
By DEB RIECHMANN, Associated Press Writer 10 minutes ago
WASHINGTON - President Bush, seeking to allay concern about federal intervention in the market, said Wednesday that the government will be a "passive investor" in shoring up banks.
On Tuesday, his administration announced a $250 billion cash infusion into selected banks to help stabilize the system and nudge banks into lending again. Despite the plan, Wall Street remains wary of job losses, the housing crisis and consumers‘ decision to curb spending.
"The government will be a passive investor," he said. "There won‘t be government officials sitting on the boards of private companies."
"They are necessary and I‘m confident in the long run, that this economy will come back," he said.
Copyright © 2008 The Associated Press. All rights
reserved.