Bush: Economy stable despite financial crisis

[1:41] ..." action to address the situation at Fannie Mae and Freddie Mac. The Federal Reserve also acted to prevent a disorderly liquidation of the insurance company AIG. And in coordination with central banks around the world the"...

[2:33] ..." action. Secretary Paulson chairman Bernanke and chairman Cox who briefed leaders on Capitol Hill on the urgent need. For congress to pass legislation approving the federal government's purchase of illiquid assets. Such as troubled mortgages. From"...

[3:45] ..." an insured fun. You'll be able to take a dollar out. The Federal Reserve is also taking steps to provide additional liquidity. To money market mutual funds. Which will help ease pressure on our financial markets."...

[6:34] ..." federal government continues to enforce laws and regulations protecting your money. The FDIC every savings account. Checking account and certificate of deposit is insured by the federal government for -- 200000 dollars. The FDIC has been in existence for 75 years. And no one has ever lost a penny uninsured deposits and this will not change."...

[7:17] ..." And recently that confidence. Has been shaken. -- should know that the United States government is taking action to restore confidence in America's financial markets. So they can thrive again. In the long run Americans have"...

[8:07] ..." economy is faced a recession. The bursting of the dot com bubble. Major corporate scandals. And unprecedented attack on our homeland. A global war on terror a series of devastating natural disasters. Our economy has weathered"...

[0:01]" This is a pivotal moment for America's economy. Problems that originated in the credit markets. And first showed up in the area of sub prime mortgages. Have spread throughout our financial system. This is led to an erosion of confidence. That is frozen many financial transactions including loans to consumers and businesses. Seeking to expand and create jobs. As a result we must act now to protect our nation's economic health groups from serious risk. There we ample opportunity to debate the origins of this problem. Now is it time to solve it. Our nation's history there have been moments that requires to come together across party lines to address major challenges. This is such a moment. Last -- secretary Paulson and chairman Bernanke chairman Cox met with congressional leaders of both parties and they had a very good meeting. I appreciate the willingness of congressional leaders to confront this situation head on. Our system of free enterprise stress on the conviction. That the federal government should interfere in the marketplace. Only when necessary. Given the precarious state of today's financial markets. And their vital importance to the daily lives of the American people. Government intervention is not only warranted. It is essential. In recent weeks the federal government staged a series of measures to help promote stability. In the overall economy. To avoid severe disruptions in the financial markets. And support home financing we took action to address the situation at Fannie Mae and Freddie Mac. The Federal Reserve also acted to prevent a disorderly liquidation of the insurance company AIG. And in coordination with central banks around the world the Fed is injected much needed liquidity into our financial system. These were targeted measures. Designed primarily to stop the problems of individual firms from spreading even more broadly. But more action is needed. We must address the root cause behind much of the instability in our markets. Mortgage assets that have lost value during housing decline and are now restricting the flow of credit. America's economy is facing unprecedented challenges. We're responding. With the unprecedented action. Secretary Paulson chairman Bernanke and chairman Cox who briefed leaders on Capitol Hill on the urgent need. For congress to pass legislation approving the federal government's purchase of illiquid assets. Such as troubled mortgages. From banks and other financial institutions. This is a decisive step that will address underlying problems in our financial system. -- help take pressure off the balance sheets of banks and other financial institutions. To allow them to resume landing and get our financial system moving again. Additionally the federal government is taking several other steps to address to trouble over financial markets. The department of treasury is acting to restore confidence in a key element. Of America's financial system. Money market mutual funds. In the past government insurance was not available for these funds. And the reason stresses on the markets have caused some to question whether these investments are safe and accessible. Treasury department's actions address that concern by offering government insurance. For every dollar invested in an insured fun. You'll be able to take a dollar out. The Federal Reserve is also taking steps to provide additional liquidity. To money market mutual funds. Which will help ease pressure on our financial markets. These measures or actors Greece for the gears of our financial system. Which were at risk of grinding to a halt. It -- support to flow of credit to households and businesses. Securities and Exchange Commission has issued new rules temporarily suspending the practice of short selling on the stocks of financial institutions. This is intended to prevent investors from intentionally driving down particular stocks. For their own personal gain. The SEC is also requiring certain investors to disclose their short selling. His launch rigorous enforcement actions to detect fraud and manipulation in the market. Anyone engaging in illegal financial transactions will be caught and persecuted. Finally when we. Get past. The immediate challenges. My administration looks forward to working with congress on measures to bring greater long term transparency and reliability to the financial system. Including those in the regulatory blueprint submitted by secretary Paulson earlier this year. Many of the regulations governing the functioning of America's markets. Were written in a different era. It is vital that we update them to meet the realities of today's. Global financial system. Actions I've just outlined reflecting considered judgment secretary Paulson and chairman Bernanke and chairman Cox. We believe that this decisive government action is needed. To preserve America's financial system and sustain America's overall economy. These measures were required to put a -- significant amount of taxpayer dollars on the line. This action does entail risk. But we expected this money will eventually be paid back. The vast majority of assets the government is planning to purchase -- good value over time. Because the vast majority of homeowners continue to pay their mortgages. The risk is not acting. Before higher. Further stress our financial markets was caused massive job losses. Devastate retirement accounts. And further -- housing values. As well as dry -- loans for new homes and cars and college tuitions. These are risks that America cannot afford to take. This difficult time I know many Americans are wondering about the security of their finances. Every American should know that the federal government continues to enforce laws and regulations protecting your money. The FDIC every savings account. Checking account and certificate of deposit is insured by the federal government for -- 200000 dollars. The FDIC has been in existence for 75 years. And no one has ever lost a penny uninsured deposits and this will not change. America's financial system is intricate and complex. But behind all the technical terminology is statistics is a critical human factor. Confidence. Confidence in our financial system and in its institutions is essential to the smooth operation of our economy. And recently that confidence. Has been shaken. -- should know that the United States government is taking action to restore confidence in America's financial markets. So they can thrive again. In the long run Americans have good reason to be confident in our economic strength. America is the most talented. Productive. And entrepreneur workers in the world. This country is the best place in the world to invest and do business. Consumers around the world continue to seek an American products as evidenced by. Record high exports. We have a flexible and resilient system. That a source challenges and make corrections. And bounces back. We've seen their resilience over the past eight years. Since 2001 our economy is faced a recession. The bursting of the dot com bubble. Major corporate scandals. And unprecedented attack on our homeland. A global war on terror a series of devastating natural disasters. Our economy has weathered every one of these challenges. Still managed to grow. We will weather this challenge to. And we must do so together. This is no time for partisanship. We must join a move urgently needed legislation as quickly as possible. Without adding controversial provisions that could delay action. -- work we're Democrats and Republicans alike to steer our economy through these difficult times. Get back to the path of long term growth. Thank you very much."