[Weekly Compilation of Presidential Documents Volume 44, Number 39 (Monday, October 6, 2008)]
[Pages 1275-1276]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Economic Stabilization Legislation

September 29, 2008

    Good morning. Yesterday leaders here in Washington reached an 
extraordinary agreement to deal with an extraordinary problem in our 
economy. Working closely with my administration, congressional leaders 
from both parties produced the Emergency Economic Stabilization Act, a 
bold bill that will help keep the crisis in our financial system from 
spreading throughout our economy.
    This legislation deals with complex issues, and negotiators were 
asked to address them in a very short period of time. I appreciate the 
leadership of Members on both sides of the aisle who came together when 
our Nation was counting on them. Negotiations are sometimes difficult, 
but their hard work and cooperation paid off.
    The bipartisan economic rescue plan addresses the root cause of the 
financial crisis, the assets related to home mortgages that have lost 
value during the housing decline. Under the Emergency Economic 
Stabilization Act, the Federal Government will be authorized to purchase 
these assets from banks and other financial institutions, which will

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help free them to resume lending to businesses and consumers.
    The bill also includes other important ideas put forward by Members 
of Congress from both parties. For example, the bill requires the 
establishment of a guarantee program that will insure assets at no cost 
to the taxpayer. The bill provides strong, bipartisan oversight, so 
Americans can be certain that their tax dollars are used carefully and 
wisely. The bill ensures that failed executives do not receive a 
windfall from your tax dollars.
    With this strong and decisive legislation, we will help restart the 
flow of credit so American families can meet their daily needs and 
American businesses can make purchases, ship goods, and meet their 
payrolls. We'll make clear that the United States is serious about 
restoring confidence and stability in our financial system.
    I know many Americans are worried about the cost of the bill, and I 
understand their concern. This bill commits up to 700 billion taxpayer 
dollars, because a large amount of money is necessary to have an impact 
on our financial system. However, both the nonpartisan Congressional 
Budget Office and the Office of Management and Budget expect that the 
ultimate cost to the taxpayer will be far less than that. In fact, we 
expect that over time, much, if not all, of the tax dollars we invest 
will be paid back.
    Now that this legislation has been agreed to by leaders of both 
parties, it must be passed by Houses--both Houses of Congress. And I 
fully understand that this will be a difficult vote. But with the 
improvements made to this bill, I'm confident that members of both 
parties will support it. Congress can send a strong signal to markets at 
home and abroad by passing this bill promptly. Every Member of Congress 
and every American should keep in mind: A vote for this bill is a vote 
to prevent economic damage to you and your community.
    This has been a volatile time for our financial system and our 
economy. Even with the important steps we're taking to address the 
current crisis, we will continue to face serious challenges. The impact 
of the credit crisis and the housing correction will continue to 
pressure our financial system and impact the growth of our economy for 
some time. But I'm confident that this rescue plan, along with other 
measures taken by the Treasury Department and the Federal Reserve, will 
begin to restore strength and stability to America's financial system 
and overall economy. And I'm confident that in the long run, America 
will overcome these challenges and remain the most dynamic and 
productive economy in the world.
    Thank you.

Note: The President spoke at 7:34 a.m. on the South Lawn at the White 
House. In his remarks, he referred to H.R. 3997. The Office of the Press 
Secretary also released a Spanish language transcript of these remarks.