    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [October 4, 2008]
    [Pages 1269-1270]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    October 4, 2008

        Good morning. This week, Congress passed a bipartisan rescue package
    to address the instability in America's financial system. This was a
    difficult vote for many Members of the House and Senate, but voting for
    it was the right choice for America's economy and for taxpayers like
    you. I appreciate their efforts to help stop the crisis in our financial
    markets from spreading to our entire economy. And I appreciate their
    willingness to work across party lines in the midst of an election
    season.
        The legislation Congress passed provides the necessary tools to
    address the underlying problem in our financial system. The root of this
    problem is that, as assets that banks hold have lost value, their
    ability to provide credit has been restricted, making it more difficult
    for businesses and consumers to obtain affordable loans.
        Without decisive action, this credit crunch threatens to harm our
    entire economy. With this legislation, the Federal Government can help
    banks and other financial institutions resume lending. This will allow
    them to continue providing the capital that is essential to creating
    jobs, financing college educations, and helping American families meet
    their daily needs.
        Though the $700 billion dedicated to this plan is a large amount,
    the final cost to taxpayers will actually be much lower. Many of the
    assets that the Government

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    will be purchasing still have significant underlying value. As time
    passes, they will likely go up in price. And this means that the
    Government should eventually be able to recoup much, if not all, of the
    original expenditure.
        This package will also increase the safety of Americans' personal
    finances. For 75 years, the FDIC has provided insurance for savings
    accounts, checking accounts, and certificates of deposit. A similar
    insurance program is in effect for deposits in credit unions. And since
    these programs were instituted, no one has ever lost a penny on an
    insured deposit. The rescue package expands this protection by
    temporarily increasing the amount insured by the Federal Government in
    banks and credit unions from $100,000 to $250,000. These steps should
    reassure Americans, especially small-business owners, that their money
    is safe, and it should restore confidence in the health of our banking
    system.
        In addition to addressing the immediate needs of our financial
    system, this package will also help to spur America's long-term economic
    growth. This week, we learned that our Nation lost more jobs in
    September. Under these circumstances, it is essential for the Government
    to reduce the burdens on workers and business owners. And that is why
    the rescue package includes relief from the Alternative Minimum Tax,
    which would otherwise increase taxes for 26 million taxpayers by an
    average of $2,200. And that is why it includes tax relief for
    businesses, which can use these savings to hire new employees and
    finance new investment.
        By taking all these steps, we can begin to put our economy on the
    road to recovery. While these efforts will be effective, they will also
    take time to implement. My administration will move as quickly as
    possible, but the benefits of this package will not all be felt
    immediately. The Federal Government will undertake this rescue plan at a
    careful and deliberate pace to ensure that your tax dollars are spent
    wisely.
        I know many of you listening this morning are anxious about the
    state of our economy and what it means for your personal finances. I am
    confident that the implementation of this relief package can begin to
    address those concerns. I'm confident by getting our markets moving, we
    will help unleash the key to our continued economic success, the
    entrepreneurial spirit of the American people.
        Thank you for listening.

    Note: The address was recorded at 1:05 p.m. on October 3 in the Cabinet
    Room at the White House for broadcast at 10:06 a.m. on October 4. In the
    address, the President referred to H.R. 1424, approved October 3, which
    was assigned Public Law No. 110-343. The transcript was made available
    by the Office of the Press Secretary on October 3, but was embargoed for
    release until the broadcast. The Office of the Press Secretary also
    released a Spanish language transcript of this address.