    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [September 20, 2008]
    [Pages 1222-1224]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    September 20, 2008

        Good morning. This is a pivotal moment for America's economy.
    Problems that originated in the credit markets and first showed up in
    the area of subprime mortgages have spread throughout our financial
    system. This has led to an erosion of confidence that has frozen many
    financial transactions, including loans to consumers and to businesses
    seeking to expand and create jobs.
        As a result, the Government is acting to protect our Nation's
    economic health

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    from serious risk. Our free enterprise system rests on the conviction
    that the Federal Government should intervene in the marketplace only
    when necessary. Given the precarious state of our financial markets and
    their vital importance to the daily lives of the American people,
    Government intervention is not only warranted, it is essential.
        In recent weeks, the Federal Government has taken a series of
    targeted measures designed primarily to stop the problems of individual
    firms from spreading more broadly, but more action is needed. We must
    address the root cause behind much of the instability in our markets.
    America's economy is facing unprecedented challenges, and we're
    responding with unprecedented action.
        My administration is working with Congress on legislation which will
    approve the Federal Government's purchase of illiquid assets such as
    troubled mortgages from banks and other financial institutions. This
    decisive step will address underlying problems in our financial system,
    and it will allow financial institutions to resume lending and get our
    financial system moving again.
        The Department of the Treasury is also acting to restore confidence
    in a key element of America's financial system by offering Government
    insurance for money market mutual funds. For every dollar you have
    invested in an insured fund, you'll be able to take a dollar out.
        The Federal Reserve is also providing more liquidity to money market
    mutual funds, which will help ease pressure on our financial markets.
        The Securities and Exchange Commission has issued new rules
    temporarily suspending the practice of short-selling on the stocks of
    financial institutions. This is intended to prevent investors from
    intentionally driving down particular stocks for their own personal
    gain.
        Finally, when we get past the immediate challenges, my
    administration looks forward to working with Congress on measures to
    bring greater long-term transparency and reliability to the financial
    system.
        These measures require us to put a significant amount of taxpayer
    dollars on the line, but I'm convinced that this bold approach will cost
    American families far less than the alternative. Further stress on our
    financial markets would cause massive job losses, devastate retirement
    accounts, further erode housing values, and dry up new loans for homes,
    cars, and college tuitions.
        In this difficult time, I know many Americans listening may be
    wondering about the security of your finances. Through the FDIC, every
    savings account, checking account, and certificate of deposit is insured
    by the Federal Government for up to $100,000. The FDIC has been in
    existence for 75 years, and no one has ever lost a penny on an insured
    deposit. And this will not change.
        In the long term, Americans can have reason to be confident in our
    economic strength. America has the most talented, productive, and
    entrepreneurial workers in the world. This country is the best place in
    the world to invest and do business. And as we've seen repeatedly over
    the past 8 years, we have a flexible and resilient system that absorbs
    challenges, makes corrections, and bounces back.
        We will weather this challenge too, and we will do it together. This
    is not a time for partisanship. I'll work with Democrats and Republicans
    alike to steer our economy through these difficult times and back to the
    path of long-term growth. Thank you for listening.

    Note: The address was recorded at 1:25 p.m. on September 19 in the
    Cabinet Room at the White House for broadcast at 10:06 a.m. on September
    20. The transcript was made available by the Office of the Press
    Secretary on September 19, but was embargoed for release until the
    broadcast. The Office of the Press Secretary also released a Spanish
    language transcript of this address.

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