[Weekly Compilation of Presidential Documents Volume 44, Number 40 (Monday, October 13, 2008)]
[Pages 1301-1302]
[Online from the Government Publishing Office, www.gpo.gov]
<R04>
The President's Radio Address
October 4, 2008
Good morning. This week, Congress passed a bipartisan rescue package
to address the instability in America's financial system. This was a
difficult vote for many Members of the House and Senate, but voting for
it was the right choice for America's economy and for taxpayers like
you. I appreciate their efforts to help stop the crisis in our financial
markets from spreading to our entire economy. And I appreciate their
willingness to work across party lines in the midst of an election
season.
The legislation Congress passed provides the necessary tools to
address the underlying problem in our financial system. The root of this
problem is that, as assets that banks hold have lost value, their
ability to provide credit has been restricted, making it more difficult
for businesses and consumers to obtain affordable loans.
Without decisive action, this credit crunch threatens to harm our
entire economy. With this legislation, the Federal Government can help
banks and other financial institutions resume lending. This will allow
them to continue providing the capital that is essential to creating
jobs, financing college educations, and helping American families meet
their daily needs.
Though the $700 billion dedicated to this plan is a large amount,
the final cost to taxpayers will actually be much lower. Many of the
assets that the Government will be purchasing still have significant
underlying value. As time passes, they will likely go up in price. And
this means that the Government should eventually be able to recoup much,
if not all, of the original expenditure.
This package will also increase the safety of Americans' personal
finances. For 75 years, the FDIC has provided insurance for savings
accounts, checking accounts, and certificates of deposit. A similar
insurance program is in effect for deposits in credit unions. And since
these programs were instituted, no one has ever lost a penny on an
insured deposit. The rescue package expands this protection by
temporarily increasing the amount insured by the Federal Government in
banks and credit unions from $100,000 to $250,000. These steps should
reassure Americans, especially small-business owners, that their money
is safe, and it should restore confidence in the health of our banking
system.
In addition to addressing the immediate needs of our financial
system, this package will also help to spur America's long-term economic
growth. This week, we learned that our Nation lost more jobs in
September. Under these circumstances, it is essential for the Government
to reduce the burdens on workers and business owners. And that is why
the rescue package includes relief from the Alternative Minimum Tax,
which would otherwise increase taxes for 26 million taxpayers by an
average of $2,200. And that is why it includes tax relief for
businesses, which can use these savings to hire new employees and
finance new investment.
By taking all these steps, we can begin to put our economy on the
road to recovery. While these efforts will be effective, they will also
take time to implement. My administration will move as quickly as
possible, but the benefits of this package will not all be felt
immediately. The Federal Government will undertake this rescue plan at a
careful and deliberate pace to ensure that your tax dollars are spent
wisely.
I know many of you listening this morning are anxious about the
state of our economy and what it means for your personal finances. I am
confident that the implementation of this relief package can begin to
address those concerns. I'm confident by getting our markets moving, we
will help unleash the key to our continued economic success, the
entrepreneurial spirit of the American people.
Thank you for listening.
[[Page 1302]]
Note: The address was recorded at 1:05 p.m. on October 3 in the Cabinet
Room at the White House for broadcast at 10:06 a.m. on October 4. In his
address, the President referred to H.R. 1424, approved October 3, which
was assigned Public Law No. 110-343. The transcript was made available
by the Office of the Press Secretary on October 3 but was embargoed for
release until the broadcast. The Office of the Press Secretary also
released a Spanish language transcript of this address.