posted on Oct, 11 2008 @ 08:16 AM
Heres The Transcript: PART 2
First, key markets are not functioning because there's a lack of liquidity -- the grease 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 with central banks around the world to
coordinate a cut in interest rates. This rate cut will allow banks to borrow money more affordably -- and it should help free up additional credit
necessary to create jobs, and finance college educations, and help American families meet their daily needs. The Fed has also announced a new program
to provide support for the commercial paper market, which is freezing up. As the new program kicks in over the next week or so, it will help revive a
key source of 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 in savings accounts, and checking accounts, and certificates of deposit. That
means that if you have up to $250,000 in one of these insured accounts, every penny of that money is safe. The Treasury Department has also acted to
restore confidence in a 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 has launched 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, the decline in the housing market has left many Americans struggling to meet their mortgages and are concerned about losing their homes. My
administration has launched two initiatives to help responsible borrowers keep their homes. One is called HOPE NOW, and it brings together homeowners
and lenders and mortgage servicers, 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 have helped more than 2
million Americans stay in their home. And the point is this: If you are struggling to meet your mortgage, there are ways that you can get help.
With these actions to help to 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. Once supply and demand balance out, our housing market will be able to recover -- and that will help our
broader economy begin to grow.
Fifth, we've seen that problems in the financial system are not isolated to the United States. They're 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, I'll meet with
the finance ministers from our partners in the G7 and the heads of the International Monetary Fund and World Bank. Secretary Paulson will also meet
with finance ministers from the world's 20 leading economies. Through these efforts, the world is sending an unmistakable signal: We're in this
together, and we'll come through this together.