I can remember the first home I bought in Midland, Texas. I remember going down to the savings and loan and sitting down with the savings and loan officer and negotiating with the savings and loan officer. Well, this day and age you're going to use — mortgages have been bundled, so the savings and loan doesn't own the mortgage anymore, or the bank doesn't loan the mortgage anymore, the local lending institute doesn't loan the mortgage anymore. It's owned by some international group, perhaps, or it's been bundled into an asset. And so there's hardly anybody to negotiate with. And so some lenders aren't sure where to turn. They have credit-worthiness, they may get pinched as their interest rates reset.

REPORTER: Do you think there's a risk of a recession? How do you rate that?
DUBYA: You know, you need to talk to economists. I think I got a B in Econ 101. I got an A, however, in keeping taxes low.

You'll hear people say in Washington, well, we need to raise taxes in order to either pay for new programs or balance the budget. I happen to believe we can balance the budget without raising taxes if we're wise about how we spend your money. And we're proving it possible.

Three months ago, we've added — over the last three months, we added a million jobs.

Our economy expanded — so there's a big debate. There's always somebody — do tax cuts work? They work. I understand the politics of cutting taxes. Some like it, some don't. I just asked the American people to look at the facts. Since we cut taxes a second time in 2003, we've added 7.4 million new jobs. Tax cuts equaled new jobs.