Bush announces plans for sweeping financial bailout
President George W. Bush and Treasury Secretary Henry Paulson this morning announced the government is working on a sweeping bailout plan that could cost taxpayers hundreds of billions of dollars to stabilize foundering financial markets.
Paulson will spend the weekend working with members of Congress to craft legislation paving the way for the largest government intervention since the Great Depression.
"We must act now to protect our nation's economic health from serious risk," Bush said in the news conference.
Bush said Capitol leaders have already been briefed on the urgent need for Congressional approval of the government's plan to buy bad debt, such as troubled mortgages, from banks and other financial institutions.
"These illiquid assets are clogging up our financial system, and undermining the strength of our otherwise sound financial institutions," Paulson said. "As a result, Americans' personal savings are threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation has been disrupted."
Complete text of Bush speech.
Complete text of Paulson speech.
Paulson will spend the weekend working with members of Congress to craft legislation paving the way for the largest government intervention since the Great Depression.
"We must act now to protect our nation's economic health from serious risk," Bush said in the news conference.
Bush said Capitol leaders have already been briefed on the urgent need for Congressional approval of the government's plan to buy bad debt, such as troubled mortgages, from banks and other financial institutions.
"These illiquid assets are clogging up our financial system, and undermining the strength of our otherwise sound financial institutions," Paulson said. "As a result, Americans' personal savings are threatened, and the ability of consumers and businesses to borrow and finance spending, investment, and job creation has been disrupted."
Complete text of Bush speech.
Complete text of Paulson speech.
About this blog
Economic Alert is a daily blog on business and the economy in the San Gabriel Valley and beyond, featuring updates and observations from the staff of the San Gabriel Valley Newspaper Group. SGVN includes the San Gabriel Valley Tribune, Pasadena Star-News and Whittier Daily News.
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Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
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Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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Your hosts:
Kevin Smith is business editor for the San Gabriel Valley Newspaper Group. Over the past 15 years, Smith has covered development, housing, employment, technology and financial trends for a variety of newspapers.
Ryan Carter covers business and the economy for the San Gabriel Valley Newspaper Group.
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