Bush assures business, people of economic rescue

17 October 2008 17:40  [Source: ICIS news]

WASHINGTON (ICIS news)--President George Bush on Friday assured business leaders and the general public that financial recovery measures being taken by the federal government will work but that it will take time.

 

In a speech at the US Chamber of Commerce, Bush reviewed the economic stimulus and banking bailout measures put in force over the last few weeks, saying those efforts constitute “an extraordinary response to an extraordinary crisis”.

 

“These are decisive measures aimed at the heart of our financial challenges,” Bush said. “And they’re big enough and bold enough to work.”

 

“The American people can be confident that they will,” he said.

 

Bush noted the federal rescue of secondary mortgage market giants Fannie Mae and Freddie Mac, new guarantees for personal and small business bank accounts and credit availability and the $700bn (€518bn) bailout package for troubled banks.

 

He also cited recent action by the Federal Reserve to lower interest rates in coordination with similar rate cuts by other nations’ central banks.

 

All of these steps, he said, amount to “unprecedented action to boost liquidity - the grease that keeps the gears of our financial system turning”.

 

Bush dismissed concerns that federal acquisition of some banks’ shares under the $700bn bailout package is the first step toward nationalization of the US banking system.

 

“This is simply not the case,” Bush said. “The programme is designed with strong protections to ensure the government’s involvement in individual banks is limited in size, limited in scope and limited in duration.”

 

Bush warned that while government oversight of banks, Wall Street and other financial dealings needs improvement, steps toward reform should be measured and cautious.

 

“We must ensure that new regulations aimed at Wall Street do not end up hurting responsible business owners, limiting the ability of American firms to raise capital, or putting American workers at a competitive disadvantage,” he said.

 

“Our nation is dealing with a serious financial crisis,” Bush said. “In the long run, the American people can have confidence that this economy will recover.”

 

($1 = €0.74)

 

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By: Joe Kamalick
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