[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.