Bush defends massive financial rescue proposal

AP ^ | 20 Sep 2008 | DEB RIECHMANN

[BGHater]

President Bush defended the $700 billion cost of his financial bailout proposal, saying Saturday it needed to be massive so that turmoil on Wall Street did not spread to Main Street.

Bush pledged to work with Congress to quickly pass legislation as part of the largest financial bailout since the Great Depression.

"You get it's big because it needed to be big," Bush said, acknowledging that hundreds of billions of dollars in taxpayer money is being put at risk.

"I believe when it's all said and done, however, that the taxpayer is going to get a lot of that money back," he said.

Trying to allay public fears about the health of the economy and people's pocketbooks, Bush said that the risk of doing nothing far outweighed the risks of government intervention.

"People are beginning to doubt our system, people were losing confidence and I understand it's important to have confidence in our financial system," he said. Over time taxpayers will "get a lot of the money back," he said.

Bush's remarks in the Rose Garden capped a roller-coaster week on Wall Street. The Federal Reserve engineered an $85 billion takeover of insurance giant AIG this week after seizing control of housing giants Freddie Mac and Fannie Mae. One investment giant, Lehman Brothers, collapsed and a second, Merrill Lynch, was purchased by rival Bank of America for less than half its value.

The president, speaking to reporters after a meeting with Colombian President Alvaro Uribe, said he initially thought the government could deal with problems one at a time, as in the case of Fannie Mae and Freddie Mac, Lehman Brothers and AIG. He said he soon realized that the problems went beyond Wall Street.

[BGHater]

"I believe when it's all said and done, however, that the taxpayer is going to get a lot of that money back," he said.

Alot=All?

There are some many questions. Lots of Enron Math out there. Has anyone ever seen a 'accurate' financial government estimate?

Exactly is the root of this mess? Is it Subprimes? How many subprimes are out there? 2% of the Market is Subprime from what I've heard.

Lets try this instead 700Bil, would it not simply be cheaper to say, spend 300Bil, buy 1 Mil Houses at 300k?

The people get a free house and mortgage is paid off. You don't Nationalize the entire industry and we get a smaller shaft. End of the movie.

However, thats not the problem, the Financials have leveraged their money. They don't have it. It's been smoke and mirrors.

I have a gut feeling that Bank of America bought Countrywide to cover their asses. They 'knew' the Gov't would provide a bailout and allows them to put other debt on our tab.

[goldstategop]

That's one of the funniest things I ever heard. The taxpayers will get all back? Ah sure... assuming there's not another bailout down the road!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Virginia Ridgerunner]

I’m of a mind that he should have just let the whole thing crash and burn, allow the chips fall where they may so that the market could correct itself. That my young son is going to be paying for this 30 years from now just sticks in my craw!

[goldstategop]

Borrow now, pay later. That's really conservative, George!

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus

[Recovering Ex-hippie]

You are right about the smoke and mirrors. But you need a magician’s assistant for that. In this case , the pretty girl holding the cape to distract us and keep the show going is the Dems and barney Frank and Rangel and .....

Rodguy811...get ready here we go with the Bush bashing!

[RetiredArmy]

I heard a huge sucking sound from my wallet, checking account, savings and 401 accounts just now. The government must be trying to hack into all of them to get more of my money.

[K-oneTexas]

They should crash and burn. Since Congress can’t tighten their belts and begin fiscal responsibility ... it’s pretty much a done deal a tax increase id necessary to pay this off.

[Recovering Ex-hippie]

Oooops..I wasn’t in before the Bush Zot. ha.

Like bush didn’t try for years to stop this train wreck..what was he supposed to do? Get real real real angry and real conservative and say “F you! Let the country collapse! I won’t bail you out!”

[Recovering Ex-hippie]

too late for that idea....too late to crash and burn, the Dems wouldn’t allow that to happen for YEARS!

[surely_you_jest]

Once again, I have yet another reason to be sorry that I ever voted for this nimrod.

Once again, I am asking myself, “could he get any worse?”

And, sadly, I’ll be repeating this process at least one more time before Inauguration Day. About what, I do not know. But I’m sure I’ll feel violated by Jorge, without benefit of Vaseline, at least one more time. I can’t wait for him to be gone. In fact, I will celebrate his departure, much as I did Jimmuh’s and Bubba’s.

[Texas4ever]

Can someone answer what happens if we dont bail them out?

I mean how does it effect us (we the people)

LET THE PEOPLE VOTE! LET THE PEOPLE VOTE! LET THE PEOPLE VOTE!

NANCY PELOSI AND HER GANG DO NOT SPEAK FOR ME!! I WANT TO VOTE!!!!!!

[MHGinTN]

Your ignorance is showing, stupid. This current crisis started in 1999, when Clinton signed the revised way of allowing the democrat cash machine to dole out and collect bonuses via false accounting. But please, continue to expose yourself, fool.

[Evil Slayer]

Wasn’t Palin against the bailout?

[MHGinTN]

John McCain and Republicans in the Senate tried in 2005 to exposethis and stop the bleeding. Democrats knew what they had and Obama, Dodd, &co. got their graft for the work.

[surely_you_jest]

Not arguing the causes, I’m arguing the solutions.

As for the ad hominems, well, I invite you to commit an anatomical impossibility.

[Lorianne]

We’re bailing out everyone! How is that money going to ‘come back’?

Mr. Bush, if you must do this, call it straight.

[skeeter]

That's really conservative, George!

I hope the world is finally disabused of the notion that GWB has a single conservative bone in his body.

[MHGinTN]

First, the domino effect would have been instant and devastating at a time when we cannot afford the financial disaster being at war with Islam.

Second, this bailout need not be born by our grandkids, there is a way to fix this with fiscal responsibility, but the democrat party will not allow it to pass for votes in House or Senate.

[MHGinTN]

You’re soittling, fool. You don’t know how this can be fixed, but you sure know how to make a fool of yourself calling it Bush’s fault. You’re too stupid to address further. Have a pleasant evening, idiot.

[backtothestreets]

If this bailout passes, we'll all start paying soon thereafter. The proposed bailout will force the federal government to borrow huge sums which in-turn will devalue the dollar and increase the cost of imported goods. Topping the list of imported goods will be oil, and all goods manufactured from that oil. The devaluation effect will not be seen before the elections. Expect the end result to have us looking back, within a year, at the good old days of $4.00 gas at the pumps and wishing those days would return.