(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.
Not a good indicator of good economic policy. The Dow was hanging at 14,000 because of bad policies and complete lack of oversight, hence why it was not sustainable and crashed to where it is now. And these continued bailouts will keep the market down as well... there's just no confidence in the market. It'll be a while before we see true economic recovery.
I actually applaud the government on the Citigroup bailout plan. Obviously the clueless and ignorant execs at the bank don't deserve a cent for their blunders, but from an economic strategic view not doing so would be catastrophic. Unless we want US to plunge and lose over all the other emerging countries trying to bring us down, sometimes these decisions are necessary. A Citigroup failure would mean a complete undermining of foreign confidence in our economic system. Some people would say who cares, but if you think about it that's quite an irresponsible remark to make.
Bush as long as you are still Involved and are still President we will never Recover, please Bush for the sake of the country and the People STAY OUT OF THINGS let Obama handle them!
@ B.J does anyone else remember that America had a surplus before the Republicans took office?
FYI......The Chicago Tribune ran a story today about SUV's starting to be sold again because gas prices have decreased recently. The GM plant that makes Escalades and a couple other models have employees working overtime to build more gas-guzzling SUV's. Is that good business sense? Sell the ones sitting on lots all across the country but don't make more!! Waste, waste, waste. There goes your taxpayer dollars!!
Look at the Picture of the Two clowns GOTCHA FOLKS! Looks like they had their hands in the cookie Jar stole alot and got away with it They have Robbed and conned us and are smiling about it SAD SAD SAD!!!!
Okay, all news organizations need to stop showing Bush's face when discussing the economy. This is why people are so freaked out! It's not even a subliminal message, Bush plus Economy = lower retail and panic on Wall Street. Stop showing the two together. Why can't Obama move in today?!!!!!!!
Anything to try to throw off some of the stink to someone else, eh, Mr. Soon-to-be-ex-President?
Duhbya and Darth, your day is past. Please step aside for Obama.
I hope the Obama supporters onthis board are not the change we can believe in. What a bunch of hateful, immature morons.
Don't worry George....Once Obama gets his citibank cronies in there everything will be okay.
Larry Summers...are you kidding me?
W finally made a good move by consulting first with Obama before making a decision on citi corp. First smart thing he has done in 8 years.
I have a dream too. Bush and all of his cronies in jail. At the very least tied up in lawsuits, investigations, and fines, so they remain stressed and sick in the stomach, for a minimum of 8 years. If they go to the islands to try and enjoy their ill-gotten gains, the press should follow them, hound them, and make them miserable. It's not called blood-money for nothing.
To President-Elect Obama:
Just a small piece of advice. Listen to President Bush's advice and then do the exact opposite.
You are bound to succeed.
So when are they going to bail out my 401(k)? It's in a crisis, too!
Now we bailed out Citi Group....hmmmm....The Saudi percentage of ownership of Citi is pretty high. We paid $147 per barrel and now they need our help to bail them out from bad financial risks that they took. How about we get 40%-50% of the oil reserves in Saudi Arabia for exchange to help them out and a veto sit position on the OPEC Consul?
It's time for George W Bush to cut short his reign,apoligise to the American people and leave the White House on November 30,2008. At the moment he is a TOTAL LAME DUCK and the American Economy is taking a WORLD BEATING with this idiot at the controls drinking and driving is the best way that I could put it. I'm certain the American people will welcome something like this only if he acts now like he acted going to war with IRAQ.Come on George,act now and save your beloved country and let the NEW ADMINISTRATION TAKE CHARGE. Every one knew from the inception that you were the wrong man for the job thanks to those Florida MISCOUNTS in 2000 and votes that were NOT COUNTED in 2004. George Bush said he was in READY in 2000, but as every one knows now it was only to do WRONG.
PRES OBAMA NEEDS TO ADDRESS THE TERRIBLE MURDER RATE IN OUR MAJOR CITIES ,,, WE NEED TO DEAL WITH PROBLEM ASP
Bush has screwed our economy, our image around the world, created a war based on lies, thousands of our military men and women have been killed or wounded along with millions of Iraq citizens. Bush should be ashame to show his face and talk about the economy.
did bush tell him how pleased he is with the way the new clinton administration is coming along?
Right! Let's rescue more banks but ignore the auto industry. Let's take care of the fat cats on Wall St., while the auto workers start forming bread lines.
Thanks Mr President for care and concern of your rich pals.
Sure he did, he needed to know how to spell CITI!
Obama will have a transition presidency – all 4 years of it to try and restore all the failures left by the incompetent George Bush. The Obama presidency will be in the shadow of George Bush.
I'm sure PRESIDENT ELECT OBAMA will NOT listen to ANYTHING bush has to say except GOOD BYE. why should he? bush hasn't listen to anyone except crazy cheney for 8 yrs. good riddence to them both. and take all the other crooks with you.
The hard time will be gone with Bush.