There is nothing wrong with the economy . . . . More people are

working than ever before in history. We're -- our productivity is up. So is our manufacturing product up. There is no runaway inflation, as there has been in the past . . . I don't think anyone should panic, because all the economic indicators are solid." Oct. 19

I am directing that discussions be undertaken with the bipartisan leadership of the Congress {to cut the federal deficit} . . . . Certainly I am willing to be a participant in anything that can bring us together. . . . . {But} you mentioned the Democrats. For virtually a half-century or more, they have controlled both houses of the Congress and for more than a half a century, there has been with only two-year single-year exceptions a budget deficit." Oct. 20

I think that this was a long overdue correction, and what factors

led to its kind of getting into the panic stage, I don't know . . . . This is, I think, purely a stock market thing, and there are no indicators out there of recession or hard times at all . . . . {To achieve deficit reduction} I'm putting everything on the table -- with the exception of Social Security -- with no other preconditions. And I call on the leaders of Congress to do the same." Oct. 22

The American economy is sound and strong . . . . If corrections or

fluctuations do occur . . . as long as consumers do not overreact by losing confidence, our expansion will continue. Let's also remember a critical reason for this expansion was our decision to reduce taxes in 1981 . . . . I'm proud that since 1913 my party had reduced taxes 10 times and increased them only once." Oct. 24

I wonder sometimes if what happened in the market is not a case

of maybe the market overpriced itself {so} that it's now making a corrective change . . . . I set out to try and eliminate the deficit when I first came here, but unfortunately the Congress has the last word about spending and they have been more willing to spend than I would have been." Monday

. . . Recently the stock market has

alerted us of potential dangers on the economic horizon. Anyone who doubted that these threats to our future growth were serious should have been set straight in the last couple of weeks. It is time to put aside partisan rivalries and work together for our nation's future." Yesterday