    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [October 3, 2008]
    [Pages 1267-1269]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks on Economic Stabilization Legislation
    October 3, 2008

        A short time ago, the House of Representatives passed a bill that is
    essential to helping America's economy weather the financial crisis; the
    Senate passed the same legislation on Wednesday night. And when Congress
    sends me the final bill, I'm going to sign it into law.
        There were moments this week when some thought the Federal
    Government could not rise to the challenge. But thanks to the hard work
    of members of both parties in both Houses--and the spirit of cooperation
    between Capitol Hill and my administration--we completed this bill in a
    timely manner. I'm especially grateful for the contributions of Speaker
    Nancy Pelosi, Minority Leader John
    Boehner, Majority Leader Steny Hoyer, Minority Whip Roy Blunt,
    Chairman Barney Frank, Ranking Member Spencer
    Bachus.
        By coming together on this legislation, we have acted boldly to help
    prevent the crisis on Wall Street from becoming a crisis in communities
    across our country. We

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    have shown the world that the United States of America will stabilize
    our financial markets and maintain a leading role in the global economy.
        A major problem in our financial system is that banks have
    restricted the flow of credit to businesses and consumers; many of the
    assets these banks are holding have lost value. The legislation Congress
    passed today addresses this problem head on by providing a variety of
    new tools to the Government, such as allowing us to purchase some of the
    troubled assets and creating a new Government insurance program that
    will guarantee the value of others. The bill also ensures that these new
    programs are carried out in a way that protects taxpayers. It prevents
    failed executives from receiving windfalls from taxpayers' dollars. It
    establishes a bipartisan board to oversee the plan's implementation.
        Taken together, these steps represent decisive action to ease the
    credit crunch that is now threatening our economy. With a smoother flow
    of credit, more businesses will be able to stock their shelves and meet
    their payrolls, more families will be able to get loans for cars and
    homes and college education, more State and local governments will be
    able to fund basic services.
        The bill includes other provisions to help American consumers and
    businesses. It includes tax incentives for businesses to invest and
    create jobs. It temporarily expands Federal insurance for bank and
    credit union deposits from 100,000 to $250,000, a vital safeguard for
    consumers and small businesses. It provides families with relief from
    the Alternative Minimum Tax, which would otherwise increase taxes for 26
    million taxpayers by an average of $2,200.
        I know some Americans have concerns about this legislation,
    especially about the Government's role and the bill's cost. As a strong
    supporter of free enterprise, I believe Government intervention should
    occur only when necessary. In this situation, action is clearly
    necessary. And ultimately, the cost to taxpayers will be far less than
    the initial outlay. See, the Government will purchase troubled assets,
    and once the market recovers, it is likely that many of the assets will
    go up in value. And over time, Americans should expect that much, if not
    all, of the tax dollars we invest will be paid back.
        Americans should also expect that it will take some time for this
    legislation to have its full impact on our economy. Exercising the
    authorities in this bill in a responsible way will require a careful
    analysis and deliberation. This will be done as expeditiously as
    possible, but it cannot be accomplished overnight. We'll take the time
    necessary to design an effective program that achieves its objectives
    and does not waste taxpayer dollars.
        Our economy continues to face serious challenges. This morning we
    learned that America lost jobs again in September, disappointing news
    that underscores the urgency of the bill that Congress passed today. It
    will take more time and determined effort to get through this difficult
    period. But with confidence and leadership and bipartisan cooperation,
    we'll overcome the challenges we face, return our Nation to a path of
    growth and job creation and long-term economic prosperity.
        Thank you.

    Note: The President spoke at 2:03 p.m. in the Rose Garden at the White
    House. In his remarks, he referred to H.R. 1424, approved October 3,
    which was assigned Public Law No. 110-343. The Office of the Press
    Secretary also released a Spanish language transcript of these remarks.

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