[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

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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.