From Holden:

Treasury Secretary John Snow was proabably a bit too honest for the Bush administration when speaking about the economy today.

“Deficits do matter,” said Snow. “They matter because it’s critically important that financial markets have confidence in the fiscal prudence of any government.”

“If financial markets lose confidence, then funds are made available, but only at higher interest rates.”

[snip]

“There can’t be any doubt that these high energy prices are taking some of the wind out of the economy’s sail,” he said. “Current energy prices are too high and they are creating head winds for this economy.”

Snow said the only solution “is to make ourselves less dependent” on Middle Eastern oil.