Bush says understands frustration with financial meltdown Agence France-Presse

Published: Saturday September 27, 2008





Print This Email This President George W. Bush said Saturday he understood Americans may not want to foot the bill for a proposed massive rescue for the shellshocked US financial system but argued it was necessary to save the country's economy.



"Many Americans are anxious about their finances and their future," Bush said in his weekly radio address. "I know many of you listening this morning are frustrated with the situation.



"You make sacrifices every day to meet your mortgage payments and keep up with your bills. When the government asks you to pay for mistakes on Wall Street, it does not seem fair. And I understand that.



"And if it were possible to let every irresponsible firm on Wall Street fail without affecting you and your family, I would do it. But that is not possible," Bush said, warning: "The failure of the financial system would mean financial hardship for many of you."



As lawmakers in Congress negotiated details of a final rescue plan amid turmoil on global markets, Bush argued that a collapsed financial sector would mean less credit, fewer new businesses and fewer jobs.



"And that would put our economy on the path toward a deep and painful recession," he argued.



"The rescue effort we're negotiating is not aimed at Wall Street -- it is aimed at your street."



He said there was "now widespread agreement on the major principles" of a bailout package.



The plan was designed to "free up the flow of credit to consumers and businesses by reducing the risk posed by troubled assets" and would "ensure that taxpayers are protected, that failed executives do not receive a windfall from your tax dollars, and that there is a bipartisan board to oversee these efforts."



The US president also said a 700-billion-dollar pricetag estimate for the bailout was on the high side.



"The final cost of this plan will be far less than 700 billion dollars," he said.



"Here's why: as fear and uncertainty have gripped the market for mortgage-related assets, their price has dropped sharply. Yet many of these assets still have significant underlying value, because the vast majority of people will eventually pay off their mortgages.



"In other words, many of the assets the government would buy are likely to go up in price over time. This means that the government will be able to recoup much, if not all, of the original expenditure," he said.



