Bush: U.S. can take market volatility

0 Comments | USA TODAY, August, 2007 | by Sue Kirchhoff

WASHINGTON -- President Bush said Wednesday that financial markets will be able to work through current turbulence without torpedoing the economy, calling the business environment "sound."

In remarks to a group of reporters, the president said the government shouldn't bail out lenders of risky mortgages that went sour, but that the Federal Housing Administration should work with troubled homeowners when possible.

While emphasizing that his economic advisers were closely monitoring recent turbulence in the markets, Bush said there were enough willing lenders and buyers to absorb the current shocks.

"There is a lot of liquidity in our system, and liquidity will provide the capacity for our system to adjust," Bush said. "Markets ... ultimately look at...