(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.
How many more decisions can W make in 57 days?
How much more money to his friends and their friends? How much more in his retirement package? It's our money, people. Padding the wealthy retirement packages. Not ours.
Gee, Mighty big of W to do that. :-/
Deja vu . . . Heckuva job, Paulie
Who is this man in the White house and what has he done withthe George Bsh we suffered through for 7 years?
In the last few weeks This "impostor" has acted in a way that say he does understand what americans want, he is listening to others and he is being gracious to other political leaders.
Where've you been George W?
Why is the media still giving this guy air time? It's clear that he does not care about the economy and what's going on in it because he and his family are set for rest of their lives. Seems like every thing PE Obama says Bush agrees with it.
Why doesn't he just step out of the way and let PE Obama/Biden take over things straight away?
I want to say to all people of america, I hope you all have a HAPPY THANKSGIVING. Even though I disagree with Bush 100% of the time I still wish him well and will try to foregive the decesions he has made for this country.
Rescue the financial institutions and Wall Street?? Ever since the $700 billion bailout of those greedy financial institutions, including $20 billion over the weekend to Citi Corp, the stock market has fallen about 2-3,000 points. At that rate, another $700 billion or so will get it close to O. Why not help the manufacturing sector, like the bankrupt auto industry and some 3 million American jobs that are dependent upon the American auto industry surviving!? Or does all our money just to to the corporate fatcat friends of Pauson on Wall Street?
Bush is trying to use up all of the bailout money, with no strings attached, before Obama takes office.
If I were Obama I would be saying "No, you sit back and relax George, you have caused enough trouble already....I'll fix this".
I would think advice from George Bush is the last thing anyone would need seeing the mess we are in right now....when you see him it's like "the lights are on but nobody's home"!!!!!!!!
Not surprising he seems to be keeping a low profile these days....nobody cares about what he has to say anymore.
throw the GOP out of there now .Bush should be impeached
Rule #1- Take anything gwb says and do the OPPOSITE- He is by far the worse President in my lifetime- and that includes Richard Nixon.
I can't wait until January 20, 2009.
Just resign now GW! You've destroyed our nation, brought it to the verge of financial ruin, just like Osama bin Laden designed. You lost the war on terror, they won just the way the wanted to – they said they wanted to destroy american financially.
You should just quit now and let Barack and his team in ,now, we can't spare a moment more
Just look at this photo and tell me they didnt just rob the bank,or should we say,the American tax payer.
Any time the village idiot makes a decision Americans must cringe.
I am continually amazed that the federal govenment (and I don't care which party at this point) is bleeding itself to death while bailing out all of these companies and groups who have not been better managers of their money! And then we expect individuals to take personal responsibility for their financial mistakes so they won't experience foreclosure or job loss or anything else related to financial insecurity. Give me a break--no more bailouts for huge corporations, huge car manufacturers, or Wall Street. What happened to all the talk about the guys on Main Street? I am one of those, and I can barely buy groceries, partly because of my own irresponsibility with money and partly because everything is so expensive and for no good reason. When you have only $50 to spend in one week for groceries, how can you feed your family unless it is all hamburger (and that is getting out of reach!) and soup. Let's get real and stop bleeding ourselves to death. STOP THE BAILOUTS AND GET BACK TO HELPING US REGULAR FOLKS!!!
What's going to happen now? Every company in America is going to line up with puppydog eyes and hat in hand, asking for a bailout! Me thinks the American people are being given a snow job.
I just don't get it. We gave them money already. Now we're giving them more? None of these clowns deserve anything. When will they bailout folks like the gentleman I saw on the news this weekend that lost his job 2 wks ago and has his children panhandling instead of going to school. The poor man was so distraught....What about those people. Paulson is slinging the taxpayers money around like he worked for it. What a bunch of idiots. Overthrow them all.....They should be behind bars......
Every time Bush speaks it costs us billions.
pull all the bailout money and give it to each family that pays taxes, that would stimulate the economy and not giving it ti the financials, but to the people who ahve paid the the mioney and will continue to pay. GIve us all a one time check, no taxes and let us spend and stimuate the economy and the banks.
Nice of Bush to keep Obama informed,,,,but nothing obama can do to stop this little twit.
why isnt bush talking to congress? what can obama do before jan. 20th ???? wonder if paulson an bush have a detailed buss. plan
from citi group before they got the money??? will bush hand the keys to the W.H. before jan. 20th to obama ???????
isnt the G.O.P the greast thing since the coming of christ.
Bush`s grandfather was an investment banker as was his father. Paulson came from Leaman Bros ( bankrupt financial institution). Naturally, they deem the banks and financial sector of utmost importance. They are just taking care of theirselves and their "buddies" first. Everyone else can help themselves to the crumbs.---– Sound familiar ???? Sounds like the last dying gasp of "trickle down economics".
George Bush does not have to consult with Barack Obama on any issue. In doing so, he shows respect and that he is supportive of President-elect Obama.
President Bush's presidency has had numerous problems but he is president. Show him some respect.
Its amazing how fast they go to save the fat cat thieves, but let working Americans go down the tubes.
Georgie you should have had this epiphany about 24 months ago. Here you are at the 11th Hour rearranging deck chairs on the Titanic.
The trouble with the way these bailouts are being done is that there's nothing in these deals that requires Wall Street to change the way it does business. The people receiving these monies are treating their bailouts as gifts and rewards, and are right back to the "business-as-usual" protocol that put them in the hole to begin with.
Bailouts are only good for buying time. What will or will not make a difference in the country's future is whether or not business people use this very expensive opportunity to transform the way they do business. If they don't change, I don't see how bailing these companies out could be good for the country.