WASHINGTON, Sept. 19 (Xinhua) -- U.S. President
George W. Bush said Friday his administration is taking "unprecedented action"
to deal with the ailing financial markets.
"America's economy is facing unprecedented
challenges," Bush said in a Rose Garden statement. "We're responding with
unprecedented measures."
U.S. President George W. Bush makes a statement on the economy from the White House in Washington September 18, 2008. (Xinhua/Reuters Photo) Photo Gallery>>>
The president said that a financial contagion that
began with sub-prime home mortgages has spread throughout the financial system
and led to an erosion of confidence.
That has frozen many financial transactions including
those to ordinary consumers and small businesses, said the U.S. president.
He said government intervention in financial markets
is not only warranted but "it is essential" to calm nervous consumers and to
halt the worst financial crisis in decades.
"We must act now to protect our nation's health from
serious risk," he said.
It is the third time this week that Bush has spoken
on the financial crisis in an effort to calm jittery consumers and markets.
The president's statement came shortly after U.S.
Treasury Secretary Henry Paulson told a news conference that the government must
now take "further, decisive action" to take troubled assets off financial
organizations' balance sheet, saying the bad debt is "the root cause of our
financial system's stresses."
"As illiquid mortgage assets block the system, the
clogging of our financial markets has the potential to have significant effects
on our financial system and our economy," Paulson said.
The secretary wants to work through the weekend with
congressional leaders to reach agreement on a plan that would address the root
problems of the financial crisis gripping the country.
Earlier, Bush authorized the Treasury Department to
tap up to 50 billion dollars from a Depression-era fund to insure the holdings
of eligible money market mutual funds.
The Federal Reserve also announced it will expand its
emergency lending program to help support the 2 trillion dollars in assets of
the funds.
WASHINGTON, Sept. 19 (Xinhua) -- U.S. Treasury Secretary
Henry Paulson said Friday that the government must now take "further, decisive
action" to buy from financial organizations the "troubled assets," which are
"the root cause of our financial system's stresses."
The secretary told a press conference that he planned to
work through the weekend with congressional leaders to reach agreement on a plan
that would address the root problems of the financial crisis gripping the
country. Full story
WASHINGTON, Sept. 19 (Xinhua) -- Democratic
presidential nominee Barack Obama gave a nod Friday for the Republican
administration's response to the financial downturn.
"I support the effort of Secretary Paulson and Federal
Reserve Chairman Bernanke to work in a bipartisan spirit with the Congressional
leadership to find a systemic solution to our deepening crisis," he said in a
statement. Full story
WASHINGTON, Sept. 19
(Xinhua) -- U.S. Republican presidential nominee John McCain said Friday that
the federal government needs to limit bailouts to failing companies.
Speaking to supporters in Green Bay, Wis., the senator from
Arizona also called for reform on how the government handles and oversees
financial markets. Full story
NEW YORK, Sept. 19 (Xinhua)
-- Wall Street continued rally Friday as the U.S. government is working with the
Congress to restore calm to the financial system.
Treasury Secretary Henry Paulson, speaking about the
rescue plan, said a bold approach is needed to remove troubled assets from the
books of financial firms. Full story
