    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [October 11, 2008]
    [Pages 1298-1300]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    October 11, 2008

        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.
    Many Americans have serious concerns about their economic well-being.
        Here's what the American people need to know. The United States
    Government is acting and will continue to act to resolve this crisis and
    restore stability to our markets. The Federal Government has a
    comprehensive strategy and the tools necessary to address the challenges
    in our economy.
        Here are the problems we face and the steps we are taking.
        First, key markets are not functioning because there is a lack of
    liquidity, 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, a step that should help
    free up credit. The Fed has also announced a new program to provide
    support for a vital tool that many American businesses use to finance
    their day-to-day operations, the commercial paper market, which is
    freezing up. As this

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    program kicks in over the next week or so, it will help revive a key
    source of short-term financing for 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.
        Third, we are concerned that some investors could take advantage of
    the crisis to illegally manipulate the stock market. So the Securities
    and Exchange Commission is launching rigorous enforcement actions to
    detect fraud and manipulation in the market.
        Fourth, the decline in the housing market has left many Americans
    concerned about losing their homes. My administration launched the HOPE
    NOW Alliance, which brings together homeowners and lenders and mortgage
    servicers and others to find ways to prevent foreclosure. We're also
    making it easier for responsible homeowners to refinance into affordable
    mortgages insured by the Federal Housing Administration. Americans
    listening today can know that if you're struggling to meet your
    mortgage, there are ways you can get help.
        These actions are helping to address 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 have seen that problems in the financial system are not
    isolated to the United States. So we're working closely with partners
    around the world to ensure that our actions are coordinated and
    effective. Today I'm meeting with
    the finance
    ministers from our partners in the G-7 and
    the heads of the World Bank and the
    International Monetary Fund, and
    Treasury Secretary Paulson is also
    hosting finance ministers from the world's 20 leading economies.
        Finally, American businesses and consumers are struggling to obtain
    credit. So my administration worked with Congress to pass a $700 billion
    financial rescue package. This new law authorizes the Treasury
    Department to use a variety of measures to help banks rebuild capital,
    including buying or insuring troubled assets and purchasing the 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 an effective way.
        In the short term, we'll continue to face challenges. But in the
    long run, Americans have reason to be confident. We have the strongest
    and most resilient economy in the world. When we have faced difficult
    tests in the past, the American people have always risen to meet them.
    And that is exactly what we're going to do again.
        Thank you for listening.

    Note: The address was recorded at 10:40 a.m. on October 10 in the
    Cabinet Room at the White House for broadcast at 10:06 a.m. on October
    11. The transcript was made available by the Office of the Press
    Secretary on October 10, 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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