    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [October 15, 2008]
    [Pages 1310-1311]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Prior to a Cabinet Meeting
    October 15, 2008

        I called my Cabinet together for them to get a full understanding of
    the extraordinary actions we've taken. Many of the Cabinet members are
    involved with helping make sure this economy is strong in the future, no
    Cabinet member more involved than Secretary Paulson. And we have taken extraordinary measures because these
    are extraordinary circumstances.
        As I said yesterday, it's very important for the American people to
    know that the program is designed to preserve free enterprise, not
    replace free enterprise. Decisions we took to enhance liquidity and make
    sure our financial instruments are strong is a temporary decision. For
    example, the equity purchases in the banks is designed so that these
    shares will eventually be sold back to the Government [banks].*
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        *White House correction.
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        Secondly, the program is limited. In other words, the Government
    will buy only a certain number of shares in individual banks. These
    banks will be privately controlled. In other words, the liquidity
    measures being taken are structured such that the Government will be a
    passive investor. In other words, there won't be Government officials
    sitting on the boards of private companies.
        These are extraordinary measures, no question about it. But they're
    well thought out, they are necessary, and I'm confident in the long run,
    this economy will come back.
        Mr. Secretary, I want to thank you
    and your team for working hard during these extraordinary times.
        We analyzed the situation very carefully. And the American people
    must understand that this carefully structured plan is aimed at helping
    you. If I'd have thought this situation would have been contained only
    to Wall Street, we'd have had a different response. But in our judgment,
    had we not acted decisively at the time we did, the credit crunch, the
    inability for banks in your communities to loan to your businesses,
    would have affected the working people and the small businesses of
    America. And that's unacceptable to me, and that's unacceptable to this
    Cabinet.
        And so I'm looking forward to going to Michigan today to talk to
    small-business owners and community bankers and workers that have been
    affected by the economy. I'm looking forward to hearing what they have
    to say. And I'm looking forward to sharing my thoughts about why the
    Government has taken these temporary measures designed to make sure that
    their lives are, you know, have the best shot at dealing with this
    financial crisis.
        Thank you very much.

    Note: The President spoke at 9:57 a.m. in the Cabinet Room at the White
    House.

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