[Weekly Compilation of Presidential Documents Volume 44, Number 39 (Monday, October 6, 2008)]
[Pages 1279-1280]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks on Economic Stabilization Legislation

September 30, 2008

    Good morning. Yesterday the House of Representatives voted on a 
financial rescue

[[Page 1280]]

plan that had been negotiated by congressional leaders of both parties 
and my administration. Unfortunately, the measure was defeated by a 
narrow margin. I'm disappointed by the outcome, but I assure our 
citizens and citizens around the world that this is not the end of the 
legislative process.
    Producing legislation is complicated, and it can be contentious. It 
matters little what a path a bill takes to become law; what matters is 
that we get a law. We're at a critical moment for our economy, and we 
need legislation that decisively address the troubled assets now 
clogging the financial system, helps lenders resume the flow of credit 
to consumers and businesses, and allows the American economy to get 
moving again.
    I recognize this is a difficult vote for Members of Congress. Many 
of them don't like the fact that our economy has reached this point, and 
I understand that. But the reality is that we are in an urgent 
situation, and the consequences will grow worse each day if we do not 
act. The dramatic drop in the stock market that we saw yesterday will 
have a direct impact on the retirement accounts, pension funds, and 
personal savings of millions of our citizens. And if our Nation 
continues on this course, the economic damage will be painful and 
lasting.
    And I know many Americans are especially worried about the cost of 
the legislation. The bill the House considered yesterday commits up to 
700 billion taxpayer dollars to purchase troubled assets from banks and 
other financial institutions. That, no question, is a large amount of 
money. We're also dealing with a large problem. But to put that in 
perspective, the drop in the stock market yesterday represented more 
than a trillion dollars in losses.
    Furthermore, both the nonpartisan Congressional Budget Office and 
the Office of Management and Budget expect that the legislation 
considered would ultimately cost the taxpayer far less than the 700 
billion, because the Government would be purchasing troubled assets and 
selling them once the market recovers. It is likely that many of the 
assets would go up in value over time. Ultimately, we expect that much, 
if not all, of the tax dollars we invest will be paid back.
    As much as we might wish the situation were different, our country 
is not facing a choice between government action and the smooth 
functioning of the free market. We're facing a choice between action and 
the real prospect of economic hardship for millions of Americans. And 
for the financial security of every American, Congress must act.
    My administration will continue to work closely with leaders of both 
parties on Capitol Hill. I appreciate their determined efforts. While 
Congress is out today for the Jewish holiday, my administration will be 
talking to congressional leaders today about how we can move legislation 
forward when Members begin returning to the Capitol tomorrow. Our 
economy is depending on decisive action from the Government. The sooner 
we address the problem, the sooner we can get back on the path of growth 
and job creation. This is what elected leaders owe the American people, 
and I am confident we'll deliver.
    Thank you.

Note: The President spoke at 8:45 a.m. in the Diplomatic Reception Room 
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.