White House Briefing

For weeks, the administration has been lowering expectations about the economy, saying the third quarter report on gross domestic product would be rough.

It was. It fell 0.3% between July and September, the weakest figure in seven years. And the White House outlook? Things are probably going to get worse.

“There’s no question the economy has weakened significantly,” admitted Eddie Lazear, chairman of the president’s council of economic advisors. “We’ve got a few tough months ahead of us,”

Lazear said parts of the U.S. are undoubtedly in a recession, but declined to say if the entire country is. By definition, a recession occurs when the economy shrinks for two quarters in a row.

But Lazear said the administration’s recent actions, notably the massive $700 billion Troubled Asset Relief Program, or TARP will help move the economy in the right direction.

Dividends

Meantime, White House press secretary Dana Perino was subjected to a barrage of questions about why banks dipping into the TARP trough for much needed capital continue to pay dividends to shareholders.

“You know, some people think only rich people get dividends. That’s not true, she said.” Perino pointed out that “mutual funds, schoolteachers” and others get dividends through investments they hold.

Where’s Bush?

The silence is thunderous. President Bush is, perhaps not by choice, staying off the campaign trail and keeping quiet about the race to succeed him – a race now down to its final hundred hours. He’ll spend the weekend at Camp David with the First Lady, but will return to the White House to watch returns on election night.

When will the president hold a news conference to comment on the election?

“I don’t know,” says Perino. “You’ll probably hear from me first though, on Tuesday night.”

The President did find a receptive audience today, though, attending graduation at the FBI academy, then visiting Marine Squadron One – home of Marine One, the presidential helicopter.

Mrs. Bush, for her part, visited New Orleans today, her 20th visit to the Gulf region since Hurricane Katrina. She visited an elementary school and announced a grant to help rebuild school libraries in the region. Perino said it would probably be Mrs. Bush’s final visit to the region as first lady.