March 13, 2009
"Prices fall. People sell. Instead of an expectation of new buyers, there is an expectation of new sellers. Greed gives way to fear. And this fear begets fear. This is the paradox at the heart of the financial crisis."
Larry Summers, Director of the National Economic Council, speaking on financial-market anxiety at the Brookings Institution
Summers addresses the psychological aspect of the crisis, telling an audience at the Brookings Institution that an "excess of fear" must be broken to reverse the economic downturn. Back in the Oval Office, the President has some economic remarks of his own, telling reporters that his team is spending every hour of every day working to get the economy moving. He also recognizes that many families are feeling "incredible pain" but says he's confident the country will get through the crisis.
The Administration makes headlines later in the day with news that it will drop the Bush-era phrase "enemy combatant" to describe terrorism detainees.