Bush: We're going to come through this

[3:01] ..." challenge facing the economy select credit. The problem became clear when the housing market declined. And complex financial assets related to home mortgages dropped in value. People put together securities based upon mortgages and mortgages valued"...

[8:32] ..." is moving aggressively to implement the new authorities. In the meantime. The Federal Reserve and the FTSE will use their powers to help stabilize the markets. Just this morning. The Federal Reserve announced action to provide additional liquidity to credit markets. Federal government -- Federal Reserve moved to try to in freeing up liquidity. So that this credit crisis begins to unwind. Few weeks from now the main"...

[13:27] ..." The the package I signed is that it. Does not prevent the Alternative Minimum Tax from kicking in which -- cost 26 million Americans to 2200 dollars a piece. During his economic and certainly we don't need to be raising taxes. And and -- the bill was more than just. The rescue plan the bill help deal with -- alternative minimum tax and would have kicked in that would effectively want to -- in this room. And took matters I think congress -- send"...

[16:47] ..." able to roll over inventory. Sort of make payroll. My first question small business owners what do you do about it. President Bush. And the answers want to recognize -- problem. And start freeing up some --"...

[18:42] ..." And I believe may have fully understand. A lot of small business owners and women I met the payroll -- people such yourself I've paid my mortgage I paid my bills what do you do"...

[22:39] ..." truth matters to government in good conscience trying to encourage people to buy homes but the problem is that the financial institutions in Washington Fannie Mae and Freddie Mac. Just were basically. Unregulated to the point"...

[0:27]" Thank you for interdiction thank you for the warm welcome. I'm pleased to be here it -- office products. I want to thank. Probably off working hard to make this visit. As comfortable as it is and it's not easy to host the president and I understand. But thank you very much David for being an entrepreneur or. -- dreamer and -- In for Brian people who work. Sixty you know that Jersey is a trusted name to a two Washington area. -- show everything from office supplies. To coffee products. To furnishings. -- a good marketer he said listen I understand you're going to be. Retiring her pretty soon. The needs of furniture new digs tax. I mandated the White House earlier and I it was my honor to welcome to the White House compound and I appreciate your welcome here to your business. I know that. Small businesses. Like Guernsey. Around the nation are feeling the impact of the financial crisis. And I appreciate you give me a chance to come and visit with you about. What the government's going to do. Power -- her -- challenge. And how we get this economy back on track. The there's no doubt. That people from all walks of life in all aspects understand. There were having serious times. Families are squeezed by and I pricing gasoline. And feel the pinch of food prices. And monthly mortgage payments. Workers are anxious about whether their paychecks stretch some workers are anxious about whether or not keep their jobs. We also note that where the most dynamic economy in the world. There we have been through tough times before. And -- come through this time again. Entrepreneurial system has delivered unparalleled levels of productivity. And growth. And prosperity. During my presidency we have faced tough times after the terrorist attack of 9/11. We came through strongly. And would come through this. No question that times are tough. But no question America. Will emerge. And -- we got some work to do and that's when want to share with you. Immediate challenge facing the economy select credit. The problem became clear when the housing market declined. And complex financial assets related to home mortgages dropped in value. People put together securities based upon mortgages and mortgages valued went down so it goes so that those securities. And -- led banks that -- the securities are suffering losses. And and they found himself short capital. Some banks have failed and other banks and reaction have restricted lending to businesses and each other. And that's the definition of a credit crunch. People just are not lending. Nations around the world especially Europe are facing severe credit shortages of their own. So this is moved from just in the United States. It's a problem that is worldwide. To some people to credit crunch might send should be like technical. It's a technical matter. But people who work in Guernsey. And you understand that credit is that fuel that drives economic expansion job creation. And here's now. She went credit runs -- and what part of our economy there's a chain reaction. So you want to show this to somebody. That person needs to borrow the money in the short term to by the desk and yet because the credit is tight. There's some banks are landing. A potential customer doesn't have the money to buy your desk and that affects you. So a lot of the -- if you hearing about. Credit crunches. Applies directly. To your business here at it Garcia hurts your suppliers. It affects the entire economy. Similar stories play out -- businesslike very juvenile across. The economy and his credit crunch were allowed to worsen. The outcome would become. Much worse was widespread job losses. This country can be and possibly painfully deep recession. So I decided to do something about it. As you know I'm market oriented. Person I believe markets are being allowed to work. Until I was convinced. That this kind of government need to act. And need to act boldly in the face of a significant problem. So what the congress. And ask congress to pass a rescue package. And there are some tough moments in the negotiations as you might remember. Nevertheless Republicans Democrats to come together. To pass a good bill. That woman -- handled his challenge head on. Now. If the plan. We'll provide the government a range of tools. To help banks rebuild capital for example. So they can help move credit. That would enable people to buy your guests. And make it more likely. You know people of infinite -- job in security. To me when you build and best selling best we find work. Keep work. The village jurors that responsible hardworking Americans are protected. Me one thing's for certain. We don't want your money to reward failed executives. There's oversight. And the bill gets implemented in which people of Washington worry -- too much power and treasury. Therefore must have reasonable oversight and I agree I think it makes a lot of sense. It temporarily expands federal insurance banking and credit union deposits. Of up to 250000. Dollars. That's important. In essence it's a safe guard. For a lot of small businesses. And lot of families. No words if you've got to cash in the bank over to 250000 dollars is safe. -- DOC has never failed to make good on his promise and it won't. Failed to to to -- promise and these these are urgently needed steps. They will help bring stability to the volatile markets. They'll help protect for a one occasion retirement accounts. And -- the markets begin to stabilize it'll help markets. Overseas. I've been in close contact with -- European leaders -- on the phone with this morning. To ensure that our actions are closely coordinated rejuvenate. Globalized world we want to make sure that were effective -- what we do. Once that once we made the decision. Enters a role for the federal government to move to stabilize the markets we want to make sure that. All of us movie best coordinated ways possible. Nationally have to finance ministers from the G seven other leading nations will be here in Washington this weekend. To make sure that the response is coordinated. To get take time for these actions are described in the bill that to their full effect. You want to make sure that we move we move effectively. Want to make sure that the plan is well thought out. And well delivered. Thawing and freezing of financial system is not going to happen overnight. But it will be a process that unfolds. Over several stages. And obviously the first stage began last Friday when I signed the rescue package in the law. So the Treasury Department is moving aggressively to implement the new authorities. In the meantime. The Federal Reserve and the FTSE will use their powers to help stabilize the markets. Just this morning. The Federal Reserve announced action to provide additional liquidity to credit markets. Federal government -- Federal Reserve moved to try to in freeing up liquidity. So that this credit crisis begins to unwind. Few weeks from now the main elements of the new legislation will begin to kick into -- As banks rebuild their capital availability increased lending to each other and begin approving new loans for families and businesses. It's not going to happen all of wants. To be gradual process. And it's going to take time to have -- full effect. As a banking sector in the market for troubled assets recover the government will begin to recoup some of the taxpayers' funds. Invested in the recovery. In the worst some of these assets were taken. Earned it depressed value. Homeownership homeowners from home prices are down the value of the assets -- down eventually we expect. That much if not all of the tax dollars will be recouped. Financial troubles. Our. Are the most urgent challenges facing our economy today but they're not the only ones who spent little time. Talking about him and -- some questions if you have any. One pressing concerns obviously the cost of energy. The cost of energy affects families. But it affects businesses as well like currency which rely on energy. To ship. And make your products. Carriers because. Obviously -- attributable -- or natural gas. And that's why this administration working with congress is dramatically expanded funding for research into alternatives. We hybrid car batteries. Fuels like ethanol and biodiesel solar and wind power safer nuclear. Power. Safe and cling to power. These rescue package I signed last week extended tax incentives to alternative energy sources. I was a rescue package was just not paying. And dealing with the financial issues it was aimed -- do with the energy issues -- to help encourage. Alternative energy so -- become less dependent on foreign oil however in the meantime. We need to be drilling. And it -- Morris drill here and send her money overseas. And we can do -- and environmentally friendly ways. Congress responded to the will of the people by lifting the ban on offshore energy exploration which is good. It's going to take awhile to go through all the permanent home environmental regulations but nevertheless the step was. Positive step was taken to become less dependent on foreign oil. Another -- home foreclosures. There's a smart way to deal with the truth -- matters people some people bought homes are beyond their means. Some people -- Holmes is simply speculate. There's also a lot of sensible homeowners. We can make man's hands me with just a little bit openness we want we want people to help people stay in their homes. And so we create what's called hope now which brings together homeowners lenders mortgage services and others to find ways to prevent foreclosures to help people work through. You know the current mortgage issues. I told you that mortgages were bundled up in the securities that banks bought. And it's a securities went down very effective the bank's balance sheets. Questioning enough when you securitized mortgages. And sell them it means that the person who originated your mortgage. Is there are no longer owns the paper. It's a lot of people -- who cannot talk to. Help me refinance my home where I know. So the whole balance. Glances an opportunity to -- Folks here's how you can find ways. Renegotiation. Your paper. Renegotiate you know and is working to better way to get another initiative at the federal housing administration. And all these programs have so far real. More than two million Americans -- downs -- reserves of ongoing attempt. To help people. Who -- just a little help. The bill to pay off their mortgages and -- most people are paying off their mortgages. Which ultimately Macy's mortgage backed securities the value that we may end up owning. Will be recouped. That's why -- say is a good chance that taxpayers would get their money back every American knows the burden of taxes. During tough economic time the burden falls especially hard. A lot of people are wondering whether or not their taxes are going to go. When he -- think things about. The the package I signed is that it. Does not prevent the Alternative Minimum Tax from kicking in which -- cost 26 million Americans to 2200 dollars a piece. During his economic and certainly we don't need to be raising taxes. And and -- the bill was more than just. The rescue plan the bill help deal with -- alternative minimum tax and would have kicked in that would effectively want to -- in this room. And took matters I think congress -- send a signal. When they come back next year and say look -- make all the tax relief we passed permanent so there's not a doubt in anybody's mind. I finally. We need to -- exports. And prices -- an economy has been. That we've exported a lot of goods overseas -- minor products that should make great progress we got a great workers. Last year that about half -- growth was attributable. To exports. So it makes sense. For congress. To continue to open up markets. Places like Colombia. Panama. Or South Korea. Take Colombia for example most of their goods come into our. Our economy duty free union argues are taxed. In Colombia. Can can understand why congress would want to at least level playing field. For workers is simply show a magistrate just the way we treat you don't want give us a fair chance. So we can export -- goods. Exports are very important part of you know our economy. Congress ought to work hard to expand markets. We'll work through this. We're taking aggressive steps. And it is not easy problem no question about as tough times. But I am. I am I am confident in the long term for this country. I'm confident the steps we've taken a bold and necessary. More importantly I'm confident in the resiliency in the Spirit of the American people and workers. Should the first time American economy has faced challenges. Has not to be the first time that we haven't recovered from a -- There -- urging. That no matter what your clients need your answers as saying we can do that. Better be good motive for the United States right now we make. I'm out -- some questions. So like its artists present questions and he had David."

[16:40]" And if a small business owner is worried about getting credit. To be able to roll over inventory. Sort of make payroll. My first question small business owners what do you do about it. President Bush. And the answers want to recognize -- problem. And start freeing up some -- some credit into the economy to start and sticking it. And it's going to take awhile. And the truth of matters until you see that credit begin to begin easier. You know you're going to have doubts as to whether or not the government is did you know has been an effective plan. But I believe the steps were taken will free up the credit it took awhile to get approaches can take awhile to get announced. And the Fed took a big step today. And my the other thing is it David is that obviously there's something. A resilient in your Spirit otherwise you wouldn't start this business in the first place. And as you -- can testified running a small business. Is full of all kinds of challenges. And it hadn't been an easy path to success. You've met challenges before and a successful business person we'll meet him again. And I know you'll adjust your business according to -- according to the circumstances. In the meantime have faith. Its economy is going to recover over time in when it does he -- you you're being a good position to take advantage of and expanding economy I wish I could snap my fingers and make what happened stop. That's not the way it works. And I told Europe. I made the decision. That is really opposite of -- my philosophy and I basically believe that people make bad decisions and marketplace the failed a problem is in this case. Failure would cost you. What appeared to be something that might have been isolated. You know in New York. Would cost -- a job. And that was unacceptable to me. And that's why I made the decision -- made."

[18:42]" And I believe may have fully understand. A lot of small business owners and women I met the payroll -- people such yourself I've paid my mortgage I paid my bills what do you do want. And what I'm joining us from taking any action necessary. To make sure that this financial system doesn't collapse. So you don't get her."

[21:04]" Now what advise the president to make sure that what you do is that which the in the powers inherent bill when we do -- their effective. Tinged jam it was something local business folks today and a man wise we said okay now if you've got to plan where's the action. And -- as I said my remarks. That we're you know we want to make sure that when we move we move effectively. And so that the consequences are positive. And so what I would do is I would tell your president. And cannot be hasty. And and have a good team of people put together a strategy. That will address the root cause of the problem. In the meantime I would. I would remind people that you know we have been through tough times before. And one of the things are concerned about Anderson psychology of people they basically shame on -- just too tough. The good -- is America we generally don't do that. -- good news in America as we say we're going to deal with circumstances in going to do with him and resolute fashion. And but you know we just going to have to work our way through this and it's. I am I'm confident we'll succeed I really am it's is not going to be easy. Because all us everybody get kind of you know wolf. It's hard to explain to people how this happened. You know it's. We the truth matters to government in good conscience trying to encourage people to buy homes but the problem is that the financial institutions in Washington Fannie Mae and Freddie Mac. Just were basically. Unregulated to the point where they wrote a lot of product that was untrustworthy over time. And you know lifted the -- politics is trying to blame somebody else. And certainly not doing this at this point time. But we did track to pass regulations that basically said if any for any stain your lane and focused on. Your core mission. But that's not what happened and now we have to deal with the consequences in a lot of people on this paper -- devalued in value which is causing. Financial institutions recoup there's very little that you can measure members until until this. You know. Credit crisis -- because your members are going to be asked can you. What did he tell you about easing of credit and -- because until Kennedys is going to be hard for businesses to feel confident to move and that's. Whole purpose of coming today was detained when we recognize your credit problem into we're taking bold action to deal with."