Biden: We "Misread" Economy - NBC New York

Biden: We "Misread" Economy

Veep said economy was worse than administration first thought

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    Biden: We "Misread" Economy
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    Biden said the administration underestimated the extent of the economic slump but it stands by the $787 billion stimulus plan that has yet to take full effect.

    Vice President Joe Biden said the Obama administration "misread how bad the economy was" but still thinks the stimulus package is the right fix for nation's financial woes.

    In an interview that aired Sunday on ABC's "This Week," Biden said the administration underestimated the extent of the economic slump but it stands by the $787 billion stimulus plan that was designed to be spent over a period of 18 months.

    "We misread how bad the economy was, but we are now only about 120 days into the recovery package," Biden said.

    Biden, who did not rule out the possibility of a second stimulus package, said the country' 9.5 percent unemployment rate is "much too high" but the stimulus package has yet to take full effect.

    "The figures we worked off of in January were the consensus figures and most of the blue chip indexes out there," he said. 

    The veep also said the United States would not put troops in harm's way should violence flare up again in Iraq -- and that the timetable for troop withdrawal from the country remains 2011.

    "That is the intention," Biden said. "We believe the Iraqis will be fully capable of maintaining their own security."