    [Public Papers of the Presidents of the United States: George W. Bush (2008, Book II)]
    [September 27, 2008]
    [Pages 1252-1253]
    [From the U.S. Government Publishing Office www.gpo.gov]

    The President's Radio Address
    September 27, 2008

        Good morning. This is an extraordinary period for America's economy.
    Many Americans are anxious about their finances and their future. On
    Wednesday, I spoke to the Nation and thanked Congress for working with
    my administration to address the instability in our financial system. On
    Thursday, I hosted Senator McCain, Senator
    Obama, and congressional leaders from both
    parties at the White House to discuss the urgency of passing a
    bipartisan rescue package for our economy.
        The problems in our economy are extremely complex, but at their core
    is uncertainty over mortgage-backed securities. Many of these financial
    assets relate to home mortgages that have lost value during the housing
    decline. In turn, the banks holding these assets have restricted credit,
    and businesses and consumers have found it more difficult to obtain
    affordable loans. As a result, our entire economy is in danger. So I
    proposed that the Federal Government reduce the risk posed by these
    troubled assets and supply urgently needed money to help banks and other
    financial institutions avoid collapse and resume lending.
        I know many of you listening this morning are frustrated with the
    situation. You make sacrifices every day to meet your mortgage payments
    and keep up with your bills. When the Government asks you to pay for
    mistakes on Wall Street, it does not seem fair, and I understand that.
    And if it were possible to let every irresponsible firm on Wall Street
    fail without affecting you and your family, I would do it. But that is
    not possible. The failure of the financial system would mean financial
    hardship for many of you.
        The failure of the financial system would cause banks to stop
    lending money to one another and to businesses and consumers. That would
    make it harder for you to take out a loan or borrow money to expand a
    business. The result would be less economic growth and more American
    jobs lost. And that would put our economy on the path toward a deep and
    painful recession.
        The rescue effort we're negotiating is not aimed at Wall Street, it
    is aimed at your street. And there is now widespread agreement on the
    major principles. We must free up the flow of credit to consumers and
    businesses by reducing the risk posed by troubled assets. We must ensure
    that taxpayers are protected, that failed executives do not receive a
    windfall from your tax dollars, and that there is a bipartisan board to
    oversee these efforts.
        Under the proposal my administration sent to Congress, the
    Government would spend up to $700 billion to buy troubled assets from
    banks and other financial institutions. I know many Americans understand
    the urgency of this action but are concerned about such a high price
    tag. Well, let me address this directly.
        The final cost of this plan will be far less than $700 billion. And
    here's why: As fear and uncertainty have gripped the market for
    mortgage-related assets, their price has dropped sharply. Yet many of
    these assets still have significant underlying value, because the vast
    majority of people will eventually pay off their mortgages. In other
    words, many of the assets the Government would buy are likely to go up
    in price over time. This means that the Government will be able to
    recoup much, if not all, of the original expenditure.
        Members of Congress from both sides of the aisle have contributed
    constructive proposals that have improved this plan. I appreciate the
    efforts of House and Senate Democratic and Republican leaders to bring a
    spirit of bipartisan cooperation to these discussions. Our Nation's
    economic

    [[Page 1253]]

    well-being is an issue that transcends partisanship. Republicans and
    Democrats must continue to address it together. And I am confident that
    we will pass a bill to protect the financial security of every American
    very soon.
        Thank you for listening.

    Note: The address was recorded at 7:10 a.m. on September 27 in the
    Cabinet Room at the White House for broadcast at 10:06 a.m. on September
    27. The transcript was made available by the Office of the Press
    Secretary on the morning of September 27, but was embargoed for release
    until the broadcast. In the address, the President referred to Sen. John
    McCain, Republican Presidential nominee; and Sen. Barack Obama,
    Democratic Presidential nominee. The Office of the Press Secretary also
    released a Spanish language transcript of this address.