“Beset by an ailing economy made more fragile by the prospect of pending war, leaders from corporate America and Wall Street said last night that they took heart in the president’s sober assessment of the financial times, but several said his speech lacked a silver bullet that would spur investment and noted that recovery would not happen without a clear resolution in the Middle East,” writes Matt Richtel in today’s New York Times.

“With a speech anchored by a proposed sweeping tax cut, President Bush sought to invigorate hopes in an economic climate in which corporate investment remains stagnant, public markets are languishing and many executives, while asserting that their industries have reached bottom, remain uncertain about when their sectors will head upward.”

“Generally, the president espoused a conservative agenda, emphasizing lower taxes and lower government spending, and on several occasions citing ‘frivolous lawsuits’ as an impediment to economic growth. In a philosophy that reminded some industry leaders of former President Ronald Reagan’s economic programs, Mr. Bush asserted that lower taxes would spur economic growth, lead to more jobs and, in turn, fill tax coffers.”

“But several industry leaders questioned whether the stimulus package would be sufficient in the short term to spur consumer spending and confidence.”

” ‘Are the proposals enough to spark spending? I hope so,’ said Hank Barry, a partner with Hummer Winblad, a Silicon Valley venture- capital firm that invests in start-up technology companies. ‘The proof point will be whether that spending comes in the next year.’ “

“Wall Street strategists said that despite the speech’s rousing tone, it lacked the specifics that investors hoped Mr. Bush would provide about a timeline for war with Iraq. For the last month, uncertainty about when a war might begin, and whether the United States would have the support of its allies, has weighed on stocks.”

” ‘I don’t know that this speech is the impetus for the retail investor to dive back in tomorrow,’ said Liz Ann Sonders, the chief investment strategist for the Charles Schwab Corporation, who generally praised the speech.”