"Either Obama lied or was grossly wrong in his estimation. Either way, I am not impressed at all since this mess cost more than the iraq war and now we have this added debt to deal with just so that state govts can keep their bloawted budgets going a little linger."
All of the global economy, as well as the national economies, are based upon confidence, right? Dollar only worth the value people assign to it. Some of the reason the dollar is tanking is the fact so many Americans are buying foreign currencies. If a population doen't believe in the value of their own money, why should foreigners? If Obama had predicted 12%, a lot of people would have panicked, sold dollars, etc.
So he's guilty of under-estimating losses in an effort not to invoke fear and panic which would lead to more losses. He's the guy telling the others in his boat "don't stress- we'll be rescued any hour now!" so they don't go mad and start swimming or stabbing one another. he's the cheerleader. It's the president's job.