Bush: U.S. economy 'resilient'

WASHINGTON, March 14 (UPI) -- President George Bush Friday said the housing crisis is the root cause for the slumping U.S. economy, but cautioned against too much governmental intervention.

"What do you do about it is to allow the market to work and help people," the president said in a speech at the Economic Club of New York, criticizing those who think "anything short of massive government intervention amounts to inaction."

The administration believes action ought to be taken, "but we're concerned about laws and regulations making it difficult for the market to recover," Bush said. He touted the bipartisan $150 billion economic stimulus package that, among other things, provides incentives for businesses to invest in new equipment in 2008.

The package also includes rebates that will be mailed to some 130 million households beginning the second week of May, he said.

Bush said he was advised the stimulus package would begin affecting the economy in the second and third quarters.

"I'm coming at you as an optimistic fellow," Bush said. "I believe we are a resilient economy ... and the ingenuity and resolve of the American people will help us deal" with the "tough time" the economy is experiencing.