President Bush Hopes for a Solution to the Economic Crisis

Stock markets around the world plunged in response to the U.S. House of Representatives' rejection of the $700 billion rescue plan. The Dow Jones Industrial Average dropped 777 points on Monday after it was apparent that the bill would not be passed, for the largest single-day drop in history. The markets have since recovered slightly.

Though most Americans don't like the way it happened, many realize that there must be some government intervention to prevent further damage to our economic system. Our way of life is at stake. Many have already watched the value of our life savings and retirement investments dwindle, many jobs have been lost, our home equity has been reduced or eliminated, and we're still trying to keep up with the rising cost of food and energy.

There are those who think a Wall Street bailout is wrong. And it is wrong. It's wrong that we've reached this point to begin with. But it's evident that something has to be done, lest we all start hoarding our cash and stuffing it in our mattresses like the banks have been doing. Let's hope that our government can find a solution to the ongoing crisis, the crisis that has Americans fearing what life will be like for them and their families if something doesn't change.

President Bush urged Members of Congress to come to a solution to the economic crisis. His speech earlier this morning:
"Good morning. Yesterday, the House of Representatives voted on a financial rescue plan that had been negotiated by Congressional leaders of both parties and my administration. Unfortunately, the measure was defeated by a narrow margin. I'm disappointed by the outcome, but I assure our citizens and citizens around the world that this is not the end of the legislative process.

"Producing legislation is complicated, and it can be contentious. It matters little what a path a bill takes to become law. What matters is that we get a law. We're at a critical moment for our economy, and we need legislation that decisively address the troubled assets now clogging the financial system, helps lenders resume the flow of credit to consumers and businesses, and allows the American economy to get moving again.

"I recognize this is a difficult vote for members of Congress. Many of them don't like the fact that our economy has reached this point, and I understand that. But the reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act. The dramatic drop in the stock market that we saw yesterday will have a direct impact on the retirement accounts, pension funds, and personal savings of millions of our citizens. And if our nation continues on this course, the economic damage will be painful and lasting.

"And I know many Americans are especially worried about the cost of the legislation. The bill the House considered yesterday commits up to 700 billion taxpayer dollars to purchase troubled assets from banks and other financial institutions. That, no question, is a large amount of money. We're also dealing with a large problem. But to put that in perspective, the drop in the stock market yesterday represented more than a trillion dollars in losses.

"Furthermore, both the nonpartisan Congressional Budget Office and the Office of Management and Budget expect that the legislation considered would ultimately cost the taxpayer far less than the $700 billion. Because the government would be purchasing troubled assets and selling them once the market recovers, it is likely that many of the assets would go up in value over time. Ultimately, we expect that much -- if not all -- of the tax dollars we invest will be paid back.

"As much as we might wish the situation were different, our country is not facing a choice between government action and the smooth functioning of the free market. We're facing a choice between action and the real prospect of economic hardship for millions of Americans. And for the financial security of every American, Congress must act.

"My administration will continue to work closely with leaders of both parties on Capitol Hill. I appreciate their determined efforts. While Congress is out today for the Jewish holiday, my administration will be talking to Congressional leaders today about how we can move legislation forward when members begin returning to the Capitol tomorrow. Our economy is depending on decisive action from the government. The sooner we address the problem, the sooner we can get back on the path of growth and job creation. This is what elected leaders owe the American people, and I am confident that we'll deliver. Thank you."




Sources:
The White House
ABCNews.com