Bush's frayed legacy now hit by economic woes

By Matt Spetalnick - Analysis

WASHINGTON (Reuters) - Even when faced with his lowest approval ratings over the Iraq war, President George W. Bush had always pointed proudly to what he considered his crowning achievement -- his stewardship of the economy.

But now, with oil prices near record highs, the mortgage market on the verge of meltdown and the specter of recession looming, Bush is seeing even that seemingly safe part of his frayed presidential legacy slipping away.

Bush is scrambling to halt the economic slide and calm roiled world financial markets with an economic stimulus package of up to $150 billion.

But even if that does the job, Bush will have a hard time salvaging his place in history.

With one year left in office, he is bogged down in an unpopular foreign war, his domestic agenda is stalled by an opposition-led Congress and he is struggling for relevance as attention turns to the battle to choose his successor.

"The way things are now, his legacy looks very grim," said Terry Madonna, a political scientist at Franklin and Marshall College in Pennsylvania, who predicts Bush will ultimately rank in the bottom 25 percent of American presidents. "It's hard to imagine him making a significant comeback."

Mindful of his low poll ratings, the Republican Bush often likens himself to Harry S. Truman, an unpopular Democratic president when he left office now admired for his handling of the Korean conflict and Cold War.

Bush has repeatedly insisted that he too will be vindicated.