[Weekly Compilation of Presidential Documents Volume 44, Number 41 (Monday, October 20, 2008)]
[Pages 1336-1338]
[Online from the Government Publishing Office, www.gpo.gov]

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The President's Radio Address

October 11, 2008

    Good morning. Over the past few days, we have witnessed a startling 
drop in the stock market, much of it driven by uncertainty and fear. 
Many Americans have serious concerns about their economic well-being.

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    Here's what the American people need to know. The United States 
Government is acting, and will continue to act, to resolve this crisis 
and restore stability to our markets. The Federal Government has a 
comprehensive strategy and the tools necessary to address the challenges 
in our economy.
    Here are the problems we face and the steps we are taking. First, 
key markets are not functioning because there is a lack of liquidity. So 
the Federal Reserve has injected hundreds of billions of dollars into 
the system. The Fed has joined with central banks around the world to 
coordinate a cut in interest rates, a step that should help free up 
credit. The Fed has also announced a new program to provide support for 
a vital tool that many American businesses use to finance their day-to-
day operations, the commercial paper market, which is freezing up. As 
this program kicks in over the next week or so, it will help revive a 
key source of short-term financing for businesses and financial 
institutions.
    Second, some Americans are concerned about whether their money is 
safe. So the Federal Deposit Insurance Corporation and the National 
Credit Union Administration have significantly expanded the amount of 
money insured in savings accounts and checking accounts and certificates 
of deposit. That means that if you have up to $250,000 in one of these 
insured accounts, every penny of that money is safe. The Treasury 
Department has also acted to restore confidence in a key element of 
America's financial system by offering Government insurance for money 
market mutual funds.
    Third, we are concerned that some investors could take advantage of 
the crisis to illegally manipulate the stock market. So the Securities 
and Exchange Commission is launching rigorous enforcement actions to 
detect fraud and manipulation in the market.
    Fourth, the decline in the housing market has left many Americans 
concerned about losing their homes. My administration launched the HOPE 
NOW Alliance, which brings together homeowners and lenders and mortgage 
servicers and others to find ways to prevent foreclosure. We're also 
making it easier for responsible homeowners to refinance into affordable 
mortgages insured by the Federal Housing Administration. Americans 
listening today can know that if you're struggling to meet your 
mortgage, there are ways you can get help.
    These actions are helping to address a key problem in the housing 
market. The supply of homes now exceeds demand, and as a result, home 
values have declined. Once supply and demand balance out, our housing 
market will be able to recover, and that will help our broader economy 
begin to grow.
    Fifth, we have seen that problems in the financial system are not 
isolated to the United States. So we're working closely with partners 
around the world to ensure that our actions are coordinated and 
effective. Today I'm meeting with the finance ministers from our 
partners in the G-7 and the heads of the World Bank and the 
International Monetary Fund, and Treasury Secretary Paulson is also 
hosting finance ministers from the world's 20 leading economies.
    Finally, American businesses and consumers are struggling to obtain 
credit. So my administration worked with Congress to pass a $700 billion 
financial rescue package. This new law authorizes the Treasury 
Department to use a variety of measures to help banks rebuild capital, 
including buying or insuring troubled assets and purchasing the equity 
of financial institutions. The Department will implement measures that 
have maximum impact as quickly as possible. Seven hundred billion 
dollars is a significant amount of money, and as we act, we will do it 
in an effective way.
    In the short term, we'll continue to face challenges. But in the 
long run, Americans have reason to be confident. We have the strongest 
and most resilient economy in the world. When we have faced difficult 
tests in the past, the American people have always risen to meet them. 
And that is exactly what we're going to do again.
    Thank you for listening.

Note: The address was recorded at 10:40 a.m. on October 10 in the 
Cabinet Room at the White House for broadcast at 10:06 a.m. on October 
11. The transcript was made available by the Office of the Press 
Secretary on October 10 but was embargoed for release until the 
broadcast. The Office of the Press Secretary also released a Spanish 
language transcript of this address.

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