The White House came out today saying that the current economic crisis to merely a "short-term uncertainty" while Wall Street appears to be pricing for a recession. The report put out by the White house, known as the Economic Report of the President" argued that the current problems with the housing market and credit crisis and fairly marginal events that should pass with the help of the proposed economic stimulus package. The view is confirmed by some high-profile investors, such as Warren Buffett, who believes that the sell-off in the stock market is overdone, while many other experts argue that the U.S. is set for a prolonged downturn. The fact is that the housing market will continue to see ARM loans reset through 2010, but the number of bad loans and effects remain to be seen.

From the Wall Street Journal:
President George W. Bush said that the economic stimulus package passed last week by Congress will help the U.S. economy deal with short-term uncertainties. Mr. Bush made brief remarks before signing the annual Economic Report of the President, which was drafted by his Council of Economic Advisers. "This report indicates that our economy is structurally sound for the long term, and that we're dealing with uncertainties in the short term," Mr. Bush said. He is to sign the stimulus package into law on Wednesday. "It's going to help to deal with the uncertainties," Mr. Bush said.