[Weekly Compilation of Presidential Documents Volume 44, Number 39 (Monday, October 6, 2008)]
[Pages 1291-1292]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 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

[[Page 1292]]

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.