Bush: anxiety feeding market instability

[0:01] ..." the past few days. We have witnessed a startling drop in the stock market. Much of it driven by uncertainty and fear. Just been. It deeply unsettling period for the American people. Many of her citizenship"...

[0:48] ..." disposal. We're using these tools aggressively. Fundamental problem -- this. As a housing market has declined banks holding assets. Related to home mortgages have suffered serious losses. As a result of these losses many banks lack"...

[2:08] ..." necessary to keep the gears of our financial system turning. So the Federal Reserve has injected hundreds of billions of dollars into the system. The Fed has joined to a central banks around the world to"...

[2:59] ..." some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration. Have significantly expanded the amount of money insured savings accounts and checking accounts and certificates of"...

[3:40] ..." some investors could take advantage of the crisis to illegally manipulate the stock market. So the Securities and Exchange Commission is -- rigorous enforcement actions. To detect fraud and manipulation in the market. The SEC is focused on preventing abusive practices. Such as putting out false information. To drive down particular stocks. For personal gain. Anyone caught engaging in illegal financial activities will be prosecuted. Fourth decline in the housing market has left many Americans struggling to meet their mortgages. Are concerned about losing their homes. My administration has launched two initiatives. To"...

[5:00] ..." These actions step prevent foreclosures. We're addressing a key problem in the housing market. The supply of homes now exceeds demand and as a result. Home values have declined. -- supply demand balance out our housing"...

[7:19] ..." carrying out this effort. Led by secretary of the treasury Hank Paulson. Federal Reserve Chairman Ben Bernanke. SEC chairman Chris Cox and FDIC chair Sheila Blair. I thank them and they're dedicated teams for their service during this important moment. In our country's history. It's"...

[0:01]" Over the past few days. We have witnessed a startling drop in the stock market. Much of it driven by uncertainty and fear. Just been. It deeply unsettling period for the American people. Many of her citizenship serious concerns about their retirement accounts it. Their investments. And their economic well being. Here's what the American people need to now. That the United States government is acting. We will continue to act. To resolve this crisis and restore stability to our markets. We're prosperous nation with a -- resources. And a wide range of tools at our disposal. We're using these tools aggressively. Fundamental problem -- this. As a housing market has declined banks holding assets. Related to home mortgages have suffered serious losses. As a result of these losses many banks lack the capital. For the competency in each other to make new loans. Can turn our system of credit is frozen. Which is keeping American businesses from financing their daily transactions. And creating uncertainty. Throughout our economy. This uncertainty has led to anxiety among our people. In that is understandable. Bad anxiety can feed anxiety. And they can make it hard to see all that is being done to solve the problem. The federal government has a comprehensive strategy. And the tools necessary to address the challenges in our economy. Fellow citizens. We can solve this crisis. And we will. You're the problems we face in the steps we're taking. First key markets are not functioning because there's a lack of liquidity. The -- necessary to keep the gears of our financial system turning. So the Federal Reserve has injected hundreds of billions of dollars into the system. The Fed has joined to a central banks around the world to coordinated cut in interest rates. The rate cut will allow banks to borrow money more affordability. And it should help free up additional credit. Necessary to create jobs in finance college educations and helped America's families meet their daily needs. The Fed is also announced a new program to provide support. For the commercial paper market. Which is freezing up. As a new program kicks in over the next week or so. It would help provide a key source. A short term financing for American businesses and financial institutions. Second some Americans are concerned about whether their money is safe. So the Federal Deposit Insurance Corporation and the National Credit Union Administration. Have significantly expanded the amount of money insured savings accounts and checking accounts and certificates of deposit. And means that if you have -- to 250000. Dollars and one of these you shared accounts. Every penny of that money is safe. The Treasury Department is also acted to restore confidence and make key element of America's financial system. By offering government insurance for money market mutual funds. Thirdly. We are concerned that some investors could take advantage of the crisis to illegally manipulate the stock market. So the Securities and Exchange Commission is -- rigorous enforcement actions. To detect fraud and manipulation in the market. The SEC is focused on preventing abusive practices. Such as putting out false information. To drive down particular stocks. For personal gain. Anyone caught engaging in illegal financial activities will be prosecuted. Fourth decline in the housing market has left many Americans struggling to meet their mortgages. Are concerned about losing their homes. My administration has launched two initiatives. To help responsible borrowers. Keep their homes. What is called hope now and it brings together homeowners and lenders and mortgage services and others to find ways to prevent foreclosure. The other initiative is aimed at making it easier. For responsible homeowners to refinance into affordable mortgages. Insured by the federal housing administration. So far these programs they help more than two million Americans stay in their home. And the point is this if you're struggling to major mortgage. There -- ways that you can get help. These actions step prevent foreclosures. We're addressing a key problem in the housing market. The supply of homes now exceeds demand and as a result. Home values have declined. -- supply demand balance out our housing mark will be able to recover. And there will help our broader economy begin to grow. Fifth we've seen the problems in the financial system are not isolated to the United States. There are also affecting other nations around the globe. So we're working closely with partners around the world to ensure that our actions are coordinated. And effective. Tomorrow on meet with the finance ministers from our partners in the G seven. Heads of the International Monetary Fund and World Bank. Secretary Paulson will also meet with finance ministers from the world's. Twenty leading economies. These efforts the world is sending an unmistakable signal. We're in this together. And we'll come through this together. And finally American businesses and consumers are struggling to obtain credit. Because banks do not have sufficient capital to make loans. So my administration worked with congress to pass a 700 billion dollar in financial rescue package. This new law authorizes the Treasury Department to use a variety of measures to help bank rebuild capital. Including buying. Or ensuring troubled assets. And purchasing equity of financial institutions. The department will implement measures that have. Maximum impact as quickly as possible. 700 billion dollars is a significant amount of money. And as we act. We will do so in away that is effective. The plan we're exercise executing. Is aggressive. It is he right plan. It will take time may have its full impact. It is flexible enough to adapt as the situation changes and it is big enough to work. Federal government will continue to take the actions necessary to restore stability to our financial markets. And growth to our economy. We have an outstanding economic team carrying out this effort. Led by secretary of the treasury Hank Paulson. Federal Reserve Chairman Ben Bernanke. SEC chairman Chris Cox and FDIC chair Sheila Blair. I thank them and they're dedicated teams for their service during this important moment. In our country's history. It's an anxious time. But the American people can be confident in our economic future. We know what to problems are. -- the tools to fix them. And working swiftly to do so. Our economy is innovative industrious and resilient. Because the American people who make up our economy. For innovative. Industrious. And resilient. We all shared determination to solve this problem. And that is exactly what we're going to do. May god bless you."