Bush failed to include "the debt is higher though, and still rising" This cotton candy economy is a hoax, housing is popping a bubble as we speak (it will be a dandy before it is over) costs of war are also artificial prop to economy, the Katrina storm is also an artificial prop (rebuilding and spending all that insurance money). Reporting a deficit reduction just before an election is nice but it still is one of two things = cotton candy or puffed rice, take your pick. Least we not forget, as mortgage defaults increase and many are returned to the originator because of bogus appraisals etc, you can believe it that the days of EASY NO down payment purchases are history. Good Luck in touting a reduction in deficit.