(CNNMoney.com) – President Bush said Monday that the first step toward economic recovery is to stabilize the financial system – and that the government may step in to help financial institutions again the way it did with Citigroup.
"This is a tough situation for America. But we will recover. The first step is to secure our financial system," Bush said after meeting with Treasury Secretary Henry Paulson. "If need be, we're going to make these kind of decisions to safeguard our financial system in the future."
The president said he spoke with President-elect Obama about the decision. "Anytime we're to make a big decision during the transition, he will be informed, as will his team," Bush said.
Watch: Bush promises close cooperation with Obama
Bush's statement came on the heels of one of the worst weeks on Wall Street, and within 12 hours of an announcement that the federal government would step in to help Citigroup, whose shares fell 50 percent last week on a loss of confidence.
The Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation said the federal government would guarantee roughly $300 billion in losses at Citigroup on its troubled assets and inject $20 billion more into the bank. That new capital injection is on top of the $25 billion given to Citigroup weeks ago as part of the $700 billion bailout passed by Congress in October.
The president's comments preceded a news conference to be held by President-elect Obama in which he was to announce his economic team, including New York Federal Reserve President Timothy Geithner as secretary of the Treasury.
Only one thing wrong, the big banks will not pay back one cent of the billions in bailout while the car companies will pay back every cent and interest. MATCH THAT WALL STREET!!!!!!!!`
Lets see... 700 billion dollars, approximately 350 million men women and children in the US (legally). How about rescuing the economy by giving that money to those people to spend to invest, save for school, catch up on mortgages, buy things they want or need? Hmmmm, $20,000 per PERSON would sure work for me. As for Wall Street, let them cut costs like we have to in order to survive. And the automakers, well, I only wish I had the benefits of either the execs or the UAW retirees who have been slaughtering the golden goose for years. Nice pensions, low cost health care must be nice. Too bad the majority of America does not get the same.
BUSH is still the USA's PRESIDENT?
I thought he got impeached!!!!!
And he said , I'm outta here! You take care of it. I have pocketed more than my entire clan can possibly spend!! I will live like a sheik when this is done and Crawford texas won't possibly be big enough!! He will not be tried for any of this, what a miscarriage of justice.
Worst President ever.
Bill, you are far from alone on the incorrect math as it shows up wrong in blogs all over, but $2,000 per U.S. person is closer to the right number for $750 billion....I've see it as high as $200,000 per person (or was it $2,000,000 per person?). I saw somewhere that we should all be given calculators that go to 100 trillion, so we can try and understand that quantity of money.
Rescuing banks? Not again! Where is our free market capitalism?
Gah! Bush and Obama are two in one. They are both socialist.
The banks act irresponsibly, that's their own fault! Why should we bail them out? With the 700,000,000,000 dollars, we could actually give everyone living in poverty and/or suffering unemployment 10-15 thousand dollars. But instead, we choose to bail out irresponsible banks. The only people who seem to profit from this 'bailout' crap are the irresponsible CEOs who already have more than enough gold coins in their pockets.
– Interfering with the free market will NOT stimulate the economy despite the claims of several fiscal 'experts' such as Paulson.
Those idiot bureaucrats just keep appending zeroes and hope that it will work...
And all the Bush bashing here is a bit out of line. May I remind everyone that the Democrats in Congress aren't doing any better...
Our whole government is corrupted... :(