Obama Tries to Temper Financial Fears

At the White House Friday, President Obama promised a thorough response to Thursday's stomach-wrenching drop in the stock market, which left analysts and investors trying pinpoint its trigger.

Characterizing the nearly 1,000-point dip in fewer than thirty minutes as "unusual market activity," Mr. Obama told White House reporters, "The regulatory authorities are evaluating this closely, with a concern for protecting investors and preventing this from happening again."

He continued, "And they will make findings of their review public, along with recommendations for appropriate action."

Explanations for the drop ranged from the so-called "fat-fingered" mistake by one trader who indicated a 'b' for "billion" when he meant 'm' for "million," to the financial and subsequent violent upheaval in Greece.

While the president didn't speculate on the reasons behind the drop, he did weigh in on the situation in Greece and what some are fearing could become a contagious calamity. "I also spoke this morning with German Chancellor Merkel regarding economic and financial developments in Europe. We agreed on the importance of a strong policy response by the affected countries and a strong financial response from the international community."

On Friday, the Upper House of Germany's Parliament approved a 110 billion euro rescue package for Greece.

Given the multi-trillion dollar US debt, some fear a similar fate for the United States, "I look at the horrible images coming out of Greece and I am struck by the reality of what can happen when a country goes on a shopping spree without paying its bills. Thank goodness America is not at that point," said House Republican Whip Eric Cantor (VA).

"We have time to right the ship and get serious about tackling our own debt crisis," he said. "But we have to start now. Until we do, sustainable job growth may not be possible."

Meanwhile, Mr. Obama pledged support for international efforts to stem the tide, "I made clear that the United States supports these efforts and will continue to cooperate with European authorities and the IMF during this critical period."

For more on the "fat finger" theory, see Major Garrett's post.