[Weekly Compilation of Presidential Documents Volume 44, Number 41 (Monday, October 20, 2008)]
[Pages 1346-1347]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Prior to a Cabinet Meeting

October 15, 2008

    I called my Cabinet together for them to get a full understanding of 
the extraordinary actions we've taken. Many of the Cabinet members are 
involved with helping make sure this economy is strong in the future--no 
Cabinet member more involved than Secretary Paulson. And we have taken 
extraordinary measures because these are extraordinary circumstances.
    As I said yesterday, it's very important for the American people to 
know that the program is designed to preserve free enterprise, not 
replace free enterprise. Decisions we took to enhance liquidity and make 
sure our financial instruments are strong is a temporary decision. For 
example, the equity purchases in the banks is designed so that these

[[Page 1347]]

shares will eventually be sold back to the Government [banks]. *
    * White House correction.
    Secondly, the program is limited. In other words, the Government 
will buy only a certain number of shares in individual banks. These 
banks will be privately controlled. In other words, the liquidity 
measures being taken are structured such that the Government will be a 
passive investor. In other words, there won't be Government officials 
sitting on the boards of private companies.
    These are extraordinary measures, no question about it. But they're 
well thought-out, they are necessary, and I'm confident in the long run 
this economy will come back.
    Mr. Secretary, I want to thank you and your team for working hard 
during these extraordinary times.
    We analyzed the situation very carefully. And the American people 
must understand that this carefully structured plan is aimed at helping 
you. If I'd have thought this situation would have been contained only 
to Wall Street, we'd have had a different response. But in our judgment, 
had we not acted decisively at the time we did, the credit crunch, the 
inability for banks in your communities to loan to your businesses, 
would have affected the working people and the small businesses of 
America. And that's unacceptable to me, and that's unacceptable to this 
Cabinet.
    And so I'm looking forward to going to Michigan today to talk to 
small-business owners and community bankers and workers that have been 
affected by the economy. I'm looking forward to hearing what they have 
to say. And I'm looking forward to sharing my thoughts about why the 
Government has taken these temporary measures designed to make sure that 
their lives are, you know, have the best shot at dealing with this 
financial crisis.
    Thank you very much.

Note: The President spoke at 9:57 a.m. in the Cabinet Room at the White 
House.