WASHINGTON (MktNews) - "I am completely recharged" about U.S. economicprospects, O'Neill said after speaking at a National Association for Business Economics policy conference. O'Neill gave a very abbreviated version of his prepared remarks -- calling them something chewable to be offered to the press corps -- and said he would rather engage with the economists in the audience. Responding to a question on the Japanese economy, O'Neill said the U.S. approach would be to "ask Japan how we can help." But he went on to outline two key elements he saw as necessary for Japanese recovery. Similar to the U.S. savings and loan crisis of the late 1980s and early 1990s, Japan will have to deal with its bad asset situation. More critically, however, Japan "needs to open up their economy to world prices," O'Neill said. "All other things follow from price competition," he added. O'Neill said price competition has been the "greatest friend" to U.S. economic prosperity. "The lesson of Japan is that even a brilliantly planned economy can't begin to approach the wealth and income creation of a free market economy," he said. "I am optimistic they're finally going to take the action that is abundantly clear to us," O'Neill said. Asked about the status of housing finance giants Fannie Mae and Freddie Mac and the rumors they have been pressuring banks, O'Neill rolled his eyes and jokingly asked to answer a question on foreign exchange rates instead. He said the debate over Fannie and Freddie boils down to whether "society should give somewhat of a preferential place in capital markets to housing." O'Neill said some people in good faith believe the answer to that question is known, but resort to "stealth attacks" rather than debate on this point. There currently are legislative ideas being debated on "how to reduce the preferenced position" of Fannie and Freddie, which he said is a "legitimate conversation." O'Neill rebuffed a question about the declining supply of publicly held debt and a possible replacement benchmark for Treasury debt, saying an advisory committee is working on that issue. Expressing his distaste for discussing the issue in public, O'Neill said, "Even repeating the question is dangerous."