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Asking the Tough Questions in Troubled Times - White House Press Briefing by Dana Perino 1/6/09
— Tuesday, January 06, 2009 —
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MS. PERINO: Ann.

Q Hi. According to a release from Laura Bush's office this morning, there's going to be a set of George W. Bush state china. Any idea why it's being delivered two weeks before he leaves office?

MS. PERINO: No time like the present. (Laughter.) I think that it just took a while for them to figure out the design that they wanted. Then it was produced and it has arrived at the White House. And so Mrs. Bush will be happy to share that with everybody soon.

Q Do you know anything about it or why they're doing -- because not every President does this kind of thing.

MS. PERINO: I haven't seen it yet and I'll let her talk about that. I'll see if I can get some more information. I just know that it has arrived.

Q Is it a good expenditure for an administration when the economy is in the kind of state it is?

MS. PERINO: I think that it was probably done within the White House budget, but we'll check for you.

Q Got pictures of them? What does it look like?

MS. PERINO: I'll check with Mrs. Bush's office. I just -- I haven't had the pleasure of seeing it yet.

Q Do you know those Obama plates you see on television? (Laughter.)

Q Yes, I know, I'm wondering. (Laughter.)

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Posted by White House Press Corps @ 9:34 PM

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Joe "Absolutely Tanking" Biden - White House Press Briefing by Tony Fratto 12/22/08
— Monday, December 22, 2008 —
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MR. FRATTO: Yes, John.

Q Joe Biden said yesterday that -- a couple things on the economy. He said the Obama administration will probably inherit the largest deficit in American history, probably more than a trillion dollars, and that's why we need a second stimulus package in the range of $600 billion to $700 billion -- some people are saying more than $700 billion, as you know. Two questions --


MR. FRATTO: I'm sorry, he said that we need a --

Q He said that's why we need a second stimulus package.

MR. FRATTO: Because of the size of the deficit?

Q Because in the long run, it would bring the deficit down because -- it's sort of Republican thinking, actually. (Laughter.) Do you agree that by January 20th, the deficit could bust a trillion dollars? And secondly, what's the latest thinking on a second stimulus package -- in the administration?

MR. FRATTO: Well, I don't think there's any chance of a second stimulus package at the end of this administration in the days that we have remaining. I know that the next administration and congressional leaders are discussing what they intend to do and what their plans are, but it's not something we'll be doing. Look, the size of the budget deficit, whatever the number is, I can't predict whether it's going to be $1 trillion or something less than that. It's going to be large. And it's going to be a very significant number.

And I think it's going to reflect two things. One, is the downturn in the economy, and the slowing of receipts coming into the federal government. It's also going to reflect the large increase in spending over the short term to deal with the financial crisis. And on the front end, the $350 billion that have been committed so far, and other funds for the financial crisis are -- they show up on the books as straight expenditures, money going out the door to financial institutions.

As we've said, these funds are actually investments in these institutions. Some of them are equity positions and other ways of holding assets in some form that will return back to the taxpayer. So over time, we believe that if it works, and if the financial institutions are as successful as we hope they'll be over time, that it should be, at worst, a wash for the taxpayers and those deficit numbers will come down.

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Posted by White House Press Corps @ 6:21 PM

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Facing Economic Facts - White House Press Briefing by Scott Stanzel
— Friday, December 05, 2008 —
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MR. STANZEL: Jim.

Q Scott, when you enter a laundry list of things that the President had to deal with, it sounds like you're claiming victimhood, that the administration has had nothing to do with the blowup of our economy. Is that what you're trying to say, or do you admit that --

MR. STANZEL: I said nothing of the sort. It is a statement of fact that those are the challenges that this President has faced. We have faced the largest terrorist attack on our economy ever. We have faced the largest natural disaster in the last hundred years. We have faced the largest crisis in our financial markets in a hundred years. That's statement of fact.

The President has taken on those big challenges and taken swift action to address them. So I don't think you can dispute any one of those facts, that they're -- they simply happened.

Q But what did the President do that contributed to the current economic blowup? Nothing?

MR. STANZEL: Well, the President has been working to address the economic situation for years. The President, I will remind you, put in place tax relief when he inherited a recession at the beginning of his first term. He put in place tax relief, the largest tax relief in a generation, that spurred 52 straight months of job growth. That is a record. That's a statement of fact, as well.

The President has put in place policies to try to get our economy moving and try to make sure that people who want to find a job can find a job. So the President has worked hard to make sure that we can take action to keep our economy moving, but many of these problems that we have seen -- in the financial markets, in the housing markets -- are many, many years in the making.

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Banks vs. Automakers - White House Press Briefing by Tony Fratto 11/24/08
— Monday, November 24, 2008 —
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MR. FRATTO: Yes, Mark.

Q Tony, in Lima over the weekend, President Bush spoke at length about the importance of free markets. Why don't all these bailouts undermine free markets by keeping troubled, distressed companies from failing?

MR. FRATTO: Well, not at all. I mean, what these efforts are doing are to prevent the financial system from failing. It's never been about any one particular company. We let thousands of companies fail in this economy every year. It's a -- actually, an important part of a healthy company is to have companies competing against each other, and some of them fail, and the winners win, and that's good.

But when you have systemically large companies that can bring down not just the entire U.S. financial system but the global financial system, and have a devastating effect on our broader economy, the government has to step in. And so we have an obligation to preserve that very important part of our economy, and that supports the free market system. Our firms can't get out there and do trade if they don't have trade financing. Firms can't get out there and distribute funds to their -- to companies who distribute products here and around the world if they don't have overnight credit financing.

So that part of our economy is critical. We need to keep it in place; we need it to be strong; we need it to fill all of the holes in our economy that need financing in order to be able to do their business in a free and open economy.

Q What guarantees do you have that they will do that, in terms of lending?

MR. FRATTO: That they will lend? That's the business they're in, and the banks have no --

Q That may be, but they're not doing it.

MR. FRATTO: Well, look, I think we're pretty confident in the guidance that we've given to banks to get out there and lend. They actually have been lending. They've had to shore up their balance sheets to make sure that they're in a good position. But banks only make money one way, and that's to be out there lending and making loans.

Now, it's a very difficult economy we're in right now, so there's a question of the demand side of people requesting loans from banks also and whether there are good bets out there. We want them to make good business decisions. But banks are only in the business of lending, so they can't be profitable companies going forward unless they are looking for opportunities to lend.

Q Why don't we help the automakers?

MR. FRATTO: We are helping the automakers -- or at least we have a plan to help the automakers. We had a bipartisan agreement on the floor of Congress -- well, actually, it never made it to the floor because the Democratic leadership decided not to bring it to the floor. But we had a bipartisan agreement that we believe would get bipartisan support. It was for $25 billion in the loan program that would have freed up that money in a way that would support the automakers in their efforts -- to help to support them as they become viable firms, because these are important parts of our manufacturing base. We want to see the automakers succeed.

There seems to be some misconception out there that we don't want to help the automakers. We do want to help the automakers. We had a bipartisan agreement to do just that, and we believe that's where those funds should come from. And by the way, the news overnight where -- this was a relatively unexpected effort by Treasury and the Fed. If you had said two weeks ago that they were going to have to take this action for Citibank, I think that would have seemed unlikely. This is a very dynamic situation we're dealing with, and the financial system is still fragile.

But that also speaks to the need to preserve the funds in the TARP for their intended purpose. We don't need to be taking funds out of the TARP program for other purposes -- and with respect to the automakers, especially when we have a $25 billion loan program that was specifically set up for their use.

Q Well, what's the hang-up? Is it because the money is coming out of the --

MR. FRATTO: That's a question for Congress, Helen. The money is there; we tried to work on both sides of the aisle to design it in a way that the automakers could access it and to help them move forward and be viable. So I would put that question to the Democratic leadership of the Congress.

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TARP Cover for the Auto Industry - White House Press Briefing by Dana Perino 11/17/08
— Monday, November 17, 2008 —
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Q You've repeated over the last 10 days your opposition to funding anything for the auto industry out of the TARP program. Are you opposed to Congress amending that so that monies in that program could go to the auto industry?

MS. PERINO: I don't think we think it would be necessary to do so when we already have a program with monies, $25 billion, appropriated specifically for the auto industry. The TARP funding is there for financial institutions. It was -- Congress never intended for individual industries to be able to come forward to --

Q And what if they change their mind?

MS. PERINO: Well, I think that what they should be able to do is -- look, there's not an appetite in Congress, or in the administration, to open up the TARP funding for individual industries, because once you start down that road, it's a slippery slope to other industries that might say that they need help. But we do have an entire pot of money, $25 billion, that the auto -- that is specifically for the automakers. And we also know that opening up the TARP will not get through the Senate. Therefore, to avoid partisan gridlock, what we are recommending is to work hand in hand on a program that would simply amend the 136 program and help companies that can show long-term viability and a willingness to restructure.

Q Would you guys veto?

MS. PERINO: I think it's too early to say since we haven't even seen their legislation. It's too early to say.

Q Dana, on that viability point, regardless of where the money comes from, whether it's TARP or the Department of Energy, it's still taxpayer money. Is that a good investment? Are the automakers a good investment?

MS. PERINO: Well, I think that's another thing to remember, which is that the TARP program was specifically designed to help taxpayers get a return on their investment. This is monies that we are investing into companies. We are providing capital. And it has to be paid back. There is no direct subsidy that we are suggesting in the TARP.

The Treasury Department has been making decisions based on what they think will at least make the taxpayers whole, if not help us get a return on that investment. When we're talking about the auto industry, and while we haven't seen the Democrats' proposal yet, it doesn't seem that would be the case, that the taxpayers would actually be paid back.

But when we're talking about viability, what we mean is that a company needs to be able to show that they have long-term plans, so that they will be on -- have sound financing, and not have a vicious cycle of getting back into this situation again. One of the reasons that we agreed to go forward with the 136 program was to allow the companies to have access to a stream of funds to help them retool their factories so that they could build more fuel-efficient cars, which is what consumers of today are looking for. But in addition to that, the automakers have over time made some decisions based on their needs for their employees, and some of those decisions might have to be reworked, going forward.

So they're going to have to be able to show how they can survive. If you look at their ability to compete worldwide -- we think that our companies can compete, but they're not going to be able to do so unless they make some of these really tough decisions.

Q So are you saying they should get rid of pensions or health care provisions?

MS. PERINO: It's going to be up to the companies to decide how best to -- how they can best compete in the world and show viability. We're not going to get into dictating that.

Q But are you willing to let one or all of these three big automakers go under?

MS. PERINO: Our position is that we want these companies to succeed. We have figured out a way to provide them funds so that they are able to do that. And we think that there is a bipartisan path that we could get this done very quickly this week and avoid that.

Q But at the same time that you say that, you also are saying that they don't measure up to the viability standard, which --

MS. PERINO: But they might, and they might -- and if they can show that they can have a long-term -- that they have a long-term plan so that they are viable, then that would be taken into consideration.

Q And so what is the next move for the administration to, you know, close the gap between you guys and the Democrats?

MS. PERINO: Well, we're waiting for them to get back in town. We're waiting -- we haven't even seen their proposal. They've talked sort of around a proposal this week, but until we see it, it's really hard to react to it. And then we'll continue to work with our Republican colleagues as well to see if we can forge an agreement and get something done early this week.


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Posted by White House Press Corps @ 6:55 PM

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Helen has a question - White House Press Briefing by Dana Perino 11/12/08
— Wednesday, November 12, 2008 —
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Q I think Helen had a question.

MS. PERINO: Helen has a question.

Q Yes, I do. You say the President is not at fault for the auto industry problem. Do you think he's responsible for a solution?

MS. PERINO: Well, I think that he --

Q And also, is there a quid pro quo on the Colombia trade agreement?

MS. PERINO: There is absolutely no quid pro quo for that. And I was able to clarify that yesterday, and I was pleased that the President-elect's team clarified that as well. But I think that the President of the United States believes that companies are responsible for finding solutions. However, this is an industry, as I've said before, that's very important to the American people. And there are a lot of regulations that the government has tried to place on these companies over the years. And so Congress and the administration and the companies have an obligation to put their best minds towards trying to find out -- figure out what we can do to the greatest extent possible to try to keep these companies viable. And if we can do that, we certainly will.

Q Is he aware that Michigan has 9 percent unemployment?

MS. PERINO: Very well aware of it. And he's been very concerned about it. It's one of the reasons that he agreed to the UI extension from -- unemployment insurance extension that we provided in August. And we'll see what the Congress puts forward on that if they come back for a lame duck.

Q Is he aware that Detroit won World War II by retooling in a matter of days to a wartime condition?

MS. PERINO: He knows how important Detroit is, how -- its history, the industry, and how many people it supports, not just in Detroit, but all across our country, and the people all around the world who work for those corporations. He's very mindful of it.





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Posted by White House Press Corps @ 7:56 PM

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Favorability and Power - White House Press Briefing by Dana Perino 10/14/08
— Tuesday, October 14, 2008 —
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Q According to some of those who were a part of the banking meeting yesterday, they were not all enthusiastic about signing off on this initially. In the President's dealings with banks, with the allies, with Congress, has he felt any impact related to his relatively low -- historic low job approval rating in the country? Has that had any impact, or been any disadvantage to him?

MS. PERINO: The President is focused on leading; he doesn't focus on the approval ratings. And yet -- I wasn't in the meetings yesterday, but I would imagine that there was probably some reluctance to move forward with this, but a willingness to do it, because everyone recognizes that we have to do it in order to protect everybody and to get this economy moving again.

So, sure, there's not a soul that wanted to have to do this. But if we're going to do it, we better do it right. And we better implement the legislation in a way that gets it done appropriately. This legislation got passed; this legislation is being implemented. The banks are going to participate in this program, and they have an incentive to get the government out of their business. We'll have a quarterly dividend that comes back to the American taxpayer at a 5 percent rate for the first three years. That jumps to 9 percent after those first three years. And so they have every incentive to work very hard to get their businesses back up to par, and return to normalcy.

Q Has the President felt any impact from the poll numbers that are out this week giving him a historically low job approval rating? It hasn't had any impact on his dealing with foreign leaders or with Congress?

MS. PERINO: Well, I think that if anybody who saw the statements yesterday by Prime Minister Berlusconi and others, all the conversations he's had, the United States is the one helping to provide the leadership necessary to steer this ship, so that we can all save our economies. That's what this President is focused on. He's not focused on the approval ratings as a lot of the media are.

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Posted by White House Press Corps @ 7:53 PM

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G7 Pileup - Air Force One Press Gaggle by Dana Perino 10/10/08
— Friday, October 10, 2008 —
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Q What is -- what's the President hoping to achieve with the ministers' meeting tomorrow, with the G7 meeting?

MS. PERINO: Well, we have been keeping you regularly updated on all the calls and coordination amongst the G7 countries and beyond, because as we said this morning, the President spoke to Prime Minister Rudd, I expect he spoke to President Lula earlier this week, amongst others.

The G7 has been working together on a variety of things: sharing information, finding common areas where they can work together on instituting rescues that will address their individual nation's needs, as well as what we need to do as a whole, since we are all so interconnected. So today's meeting at the Treasury Department will allow them to meet face to face, maybe dot some "I's," cross some "T's," and then tomorrow morning the President will have a chance to meet with them.

I'm going to let that meeting take place, but I will tell you that the goal of the meeting overall is to continue the good communication and cooperative spirit of trying to find common solutions, while respecting the fact that each nation has individual problems and challenges and needs and ways to address them.

Q Dana, has anyone at the White House spoken to Berlusconi or any of his aides about his proposal to close global markets?

MS. PERINO: I don't know if you saw an update, but it was retracted.

Q Did you guys talk to him about retracting --

MS. PERINO: No, I don't think so. I think that it all happened so fast it was --

Q It wasn't like the White House asked him to retract that or anything like that?

MS. PERINO: Not that I'm aware of. I just saw a news report as it came across. I don't know of any of us -- I wasn't involved at all.

Q What about the idea of guaranteeing some of the bad debt at the banks?

MS. PERINO: This is one of the ideas that Gordon Brown has put forward. What we have said is that with any proposal that's put forward by one of our global partners, that we'll take a look at it and we will review it, but beyond that I don't have any comment on it.

Q What about insuring all deposits temporarily at U.S. banks?

MS. PERINO: All of those things are questions that the policymakers can take up and think about, discuss. And then once we have -- if we have a decision about moving forward on any of those issues, it will either come out of the Treasury Department or we'll keep you updated.


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Posted by White House Press Corps @ 5:13 PM

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Hit Me Baby One More Time - White House Press Briefing by Dana Perino 10/9/08
— Thursday, October 09, 2008 —
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Q Thanks. Does the idea of the federal government taking part ownership in a number of U.S. banks fit with the President's philosophy of free enterprise?

MS. PERINO: As the President has said, the radical and bold aggressive steps that we are taking on the economy are not ones that were part of his natural instincts. But when presented with the evidence that the financial crisis about to hit the United States would affect every single America up and down the economic food chain, this President decided that it was important that the government take robust action. That's why we worked with Congress to establish the rescue package.

Part of that package includes a broad range of authorities for the Treasury Secretary. What you're referring to, I believe, is capital injections that would actually be investing in banks but not taking them over.

Q Not taking them over, but doesn't this idea envision that the government would have part ownership in a number of banks?

MS. PERINO: It would include an equity stake, yes.

Q And how far along is that idea?

MS. PERINO: I would refer you to the Treasury Department for that, but it is a part of the range of authorities that they were given, and this is a dynamic situation. We still have a volatile stock market, and Secretary Paulson is looking at all the different tools to figure out which one should be used at what time and how robustly, and how much money to put into each. He said it's going to take a little bit of time, though, as they implement these -- the rules and regulations that Neel Kashkari is now involved in. So let me refer you over there on specifics for that.

Q But that's an idea that the President would be okay with?

MS. PERINO: It was a part of the rescue package that the President supported, and it gives the Treasury Secretary a range of possibilities, and investing in banks directly was one of those authorities. And Secretary Paulson can use that authority as he sees fit.

Q But given the fact that the markets have not reacted positively so far, or at least not very, wouldn't the President like to see that kind of authority used sooner than later?

MS. PERINO: Well, one of the things that the President wants is to make sure that these new authorities are used in the most effective and efficient way possible. They are moving at lightning speed for government-type work in trying to establish how quickly people can get in those positions so that they can work on the reverse auctions that were also a part of the authority. This -- these capital injections are something that Secretary Paulson is actively considering, but I'd have to refer you to him as to when he thinks he'd be able to make the first move.

Q And the President -- back over this ground again -- the President doesn't object to this in spite of his free market stance?

MS. PERINO: As I -- the President's natural instincts when first presented with these issues was not to have government involvement, but when he realized that it wasn't just a few executives on Wall Street who were going to lose their shirts, but it was possibly everyone in America, and now if you look around the world, everybody is suffering -- the President said the government has the tools and the ability to be able to step in and stem this crisis, and there was no way he was going to stand by and let everyone be hurt by the bad decisions of a few.


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Posted by White House Press Corps @ 5:29 PM

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A Day at the Spa with AIG - White House Press Briefing by Dana Perino 10/8/08
— Wednesday, October 08, 2008 —
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Q Is the President following any of the financial hearings that are going on, on the Hill, specifically at AIG executives? When the White House hears about these executives taking a spa vacation, spending thousands of dollars on massages and treatments -- I mean, do they think that there should be any kind of action taken against these executives, considering how much taxpayer money was put into that company to rescue it?

MS. PERINO: I don't know how much he's been able to actually watch those. As you know, yesterday we were traveling out to Chantilly, Virginia. But certainly we've seen coverage of it. And I understand why the American people would be outraged -- I am. It's pretty despicable to realize how callous somebody might be as they go through this -- as some might be reacting to this crisis.

And the President did not want to move forward on this rescue package to help anybody in the top positions in Wall Street. He was concerned about everybody -- everyday people like you and me in America and people all across this country who have worked so hard to put money into their retirement accounts, to pay their mortgages on time, who have been responsible in the loans that they've taken out.

Not everybody has, and there were risky lenders -- lenders who gave people loans that they knew they weren't going to be able to pay, and borrowers who took out loans that they probably knew they didn't have the income in order to pay but thought maybe that eventually that they would. Now, Americans are not the type of people who fault success. When people succeed we like that, we think that that's good, and we aspire to be successful ourselves. But rewarding failure is something that we have a very hard time swallowing.

And President Bush has said that his first instinct was absolutely not to go down this road. What he wanted was to make sure that we were asking all the right questions to prevent this financial market collapse and that we take the actions necessary on Capitol Hill, or anywhere else -- at the Fed, or the SEC, wherever we could independently -- to help save the system. But he didn't do that to help top executives and certainly not to help executives go to a spa. President Bush did that in order to try to help everybody save their accounts.

Q Should some of that money be taken back from those individuals? Is there a way to do that?

MS. PERINO: I don't know how it was all paid for or anything. I just know that I can understand that people would question the judgment of executives who would take that kind of action.


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Posted by White House Press Corps @ 5:10 PM

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Wow, could've had a G8 - White House Press Briefing by Dana Perino 10/7/08
— Tuesday, October 07, 2008 —
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MS. PERINO: Wendell.

Q As we've dealt with this crisis over the past month and a half or so, the talks -- the international talks have involved the G7, not the G8. Is Moscow, in this regard, paying the price for its overreaction to the Georgia incursion?

MS. PERINO: I've not heard that come up, because -- and I don't know all the details; I'd refer you to Treasury about the G7 and the makeup. But usually when they're talking the finance ministers meeting, those have been held at the G7 level, though I think there is some observance or participation at the Russian level, and that will be true this weekend, as well.

Q That will be true this weekend as -- because Russia's stock market has lost about half its value this year. They are also suffering in this thing. Do we feel we need them, given they're a huge energy provider for Europe?

MS. PERINO: Well, I think that you should go back and -- well, you have to ask Europe that. And I think that obviously energy is an issue. They've been working to try to diversify and develop more supply and different types of supply there in their own hemisphere. But the Russian stock market -- and I'm not an expert in this -- but you could go back -- they didn't just lose value over the past two weeks. They've been losing value since about -- since May --

Q All year.

MS. PERINO: -- or maybe all year, but I know that a precipitous drop since May. Again, I don't comment on the daily market movements here, and I can't do it in terms of the Russian ones. But clearly, if you look back in August, if you want to try to make a parallel, when we were dealing with the situation when Russia invaded Georgia, yes, I think that they did -- the world did react negatively to that.

Q But I just want to make sure that the -- in the current financial situation, I want to -- the question remains whether Russia is being punished, in effect.

MS. PERINO: As I said, I'll have you check with Treasury for the exact list of who all will be here. But it's usually -- when the G7 meets, it's usually just the finance ministers. And that's been the way it's been -- I think we inherited that policy for a while. But I think that the Russian -- I can't remember --

Q So the G8 meets on political matters, the G7 on financial matters?

MS. PERINO: I believe so. I don't want to say for sure. But the G7 -- I'm sorry, Treasury will have the list today. But I do think that they send an observer.


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Posted by White House Press Corps @ 3:48 PM

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The Press and Body Language - Press Gaggle by Scott Stanzel 10/6/08
— Monday, October 06, 2008 —
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Q If there's any -- going to be any change or update in whether [the President] might speak on the economy today, can you give us a heads up?

Q -- we might hear from him when he gets back -- I mean, that's the body language I took from you.

MR. STANZEL: You guys are all great at reading body language.

Q Is that true?

MR. STANZEL: No, it's not. But I think you're all very adept at reading body language. But my body shifting and walking back and forth here was not meant to indicate anything whatsoever, other than I read out this President's schedule as it stands right now.


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Full Press Briefing

Posted by White House Press Corps @ 4:26 PM

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