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President
George Bush Discusses
The Economy
Today,
U.S President, George Bush discussed about the Economy in Rose
Garden. He certainly brought the attention that we have serious
concerned about retirement accounts, investments, and their
economic well-being. The United States government is acting
to use the tools aggressively that resources available to resolve
the economy crisis. President George Bush is committed that
the United States government will solve the problem. President
George Bush described the problems that we face and the steps
taking. The tax payers, the citizens and anxious to see the
economy crisis to be resolved as much as the tools and resources
are available in the United States America for the prosperous
purpose even during the crises.
The
following is The White House released For Immediate Release
Office of the Press Secretary, as of October 10, 2008:
10:25
A.M. EDT
THE
PRESIDENT: Good morning. Over the past few days, we have witnessed
a startling drop in the stock market -- much of it driven by
uncertainty and fear. This has been a deeply unsettling period
for the American people. Many of our citizens have serious concerns
about their retirement accounts, their investments, and their
economic well-being.
Here's what the American people need to know: that the United
States government is acting; we will continue to act to resolve
this crisis and restore stability to our markets. We are a prosperous
nation with immense resources and a wide range of tools at our
disposal. We're using these tools aggressively.
The fundamental problem is this: As the housing market has declined,
banks holding assets related to home mortgages have suffered
serious losses. As a result of these losses, many banks lack
the capital or the confidence in each other to make new loans.
In turn, our system of credit has frozen, which is keeping American
businesses from financing their daily transactions -- and creating
uncertainty throughout our economy.
This uncertainty has led to anxiety among our people. And that
is understandable -- that anxiety can feed anxiety, and that
can make it hard to see all that is being done to solve the
problem. The federal government has a comprehensive strategy
and the tools necessary to address the challenges in our economy.
Fellow citizens: We can solve this crisis -- and we will.
Here are the problems we face and the steps we are taking:
First, key markets are not functioning because there's a lack
of liquidity -- the grease necessary to keep the gears of our
financial system turning. So the Federal Reserve has injected
hundreds of billions of dollars into the system. The Fed has
joined with central banks around the world to coordinate a cut
in interest rates. This rate cut will allow banks to borrow
money more affordably -- and it should help free up additional
credit necessary to create jobs, and finance college educations,
and help American families meet their daily needs. The Fed has
also announced a new program to provide support for the commercial
paper market, which is freezing up. As the new program kicks
in over the next week or so, it will help revive a key source
of short-term financing for American businesses and financial
institutions.
Second, some Americans are concerned about whether their money
is safe. So the Federal Deposit Insurance Corporation and the
National Credit Union Administration have significantly expanded
the amount of money insured in savings accounts, and checking
accounts, and certificates of deposit. That means that if you
have up to $250,000 in one of these insured accounts, every
penny of that money is safe. The Treasury Department has also
acted to restore confidence in a key element of America's financial
system by offering government insurance for money market mutual
funds.
Thirdly, we are concerned that some investors could take advantage
of the crisis to illegally manipulate the stock market. So the
Securities and Exchange Commission has launched rigorous enforcement
actions to detect fraud and manipulation in the market. The
SEC is focused on preventing abusive practices, such as putting
out false information to drive down particular stocks for personal
gain. Anyone caught engaging in illegal financial activities
will be prosecuted.
Fourth, the decline in the housing market has left many Americans
struggling to meet their mortgages and are concerned about losing
their homes. My administration has launched two initiatives
to help responsible borrowers keep their homes. One is called
HOPE NOW, and it brings together homeowners and lenders and
mortgage servicers, and others to find ways to prevent foreclosure.
The other initiative is aimed at making it easier for responsible
homeowners to refinance into affordable mortgages insured by
the Federal Housing Administration. So far, these programs have
helped more than 2 million Americans stay in their home. And
the point is this: If you are struggling to meet your mortgage,
there are ways that you can get help.
With these actions to help to prevent foreclosures, we're addressing
a key problem in the housing market: The supply of homes now
exceeds demand. And as a result, home values have declined.
Once supply and demand balance out, our housing market will
be able to recover -- and that will help our broader economy
begin to grow.
Fifth, we've seen that problems in the financial system are
not isolated to the United States. They're also affecting other
nations around the globe. So we're working closely with partners
around the world to ensure that our actions are coordinated
and effective. Tomorrow, I'll meet with the finance ministers
from our partners in the G7 and the heads of the International
Monetary Fund and World Bank. Secretary Paulson will also meet
with finance ministers from the world's 20 leading economies.
Through these efforts, the world is sending an unmistakable
signal: We're in this together, and we'll come through this
together.
And finally, American businesses and consumers are struggling
to obtain credit, because banks do not have sufficient capital
to make loans. So my administration worked with Congress to
quickly pass a $700 billion financial rescue package. This new
law authorizes the Treasury Department to use a variety of measures
to help bank [sic] rebuild capital -- including buying or insuring
troubled assets and purchasing equity of financial institutions.
The Department will implement measures that have maximum impact
as quickly as possible. Seven hundred billion dollars is a significant
amount of money. And as we act, we will do it in a way that
is effective.
The plan we are executing is aggressive. It is the right plan.
It will take time to have its full impact. It is flexible enough
to adapt as the situation changes. And it is big enough to work.
The federal government will continue to take the actions necessary
to restore stability to our financial markets and growth to
our economy. We have an outstanding economic team carrying out
this effort, led by Secretary of the Treasury Hank Paulson,
Federal Reserve Chairman Ben Bernanke, SEC Chairman Chris Cox,
and FDIC Chair Sheila Bair. I thank them and their dedicated
teams for their service during this important moment in our
country's history.
This is an anxious time, but the American people can be confident
in our economic future. We know what the problems are, we have
the tools we need to fix them, and we're working swiftly to
do so. Our economy is innovative, industrious and resilient
because the American people who make up our economy are innovative,
industrious and resilient. We all share a determination to solve
this problem -- and that is exactly what we're going to do.
May God bless you.
END 10:33 A.M. EDT
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References:
For
Immediate ReleaseOctober 10th, 2008
Provided
by Sandra Englund, Catch4all.com
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