(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.
bush and team of GOP crroks from texas
Obama better be prepared to stomp on the way Wall Street has conducted business for far too long now.How much of this"bailout"
money is going to reward those who have put the whole world in such dire straits and how much is really going to"trickle down"to those who need it most.
Of course he did. This whole thing is engineered and they are all in this together. This new treasury secretary coming in is in the same circles of the others. This is very dreadful news.
EVERY SINGLE CENT OF THE BAILOUT MONEY SHOULD BE ACCOUNTED FOR AND POSTED FOR THE AMERICAN PEOPLE TO SEE FOR THEMSELVES.
To Hometowndemocrat – I'm thinking more like Uncle Fester and Howdy Dooty. Yes some Republicans do have a sense of humor :)
Does Bush the Younger E-V-E-R take an adult/presidential picture? He must hold the record for the most doofus/Mad Magazine-inspired photographs in presidential history.
What makes any of you bloggers think the bailouts will stop when Obama is in office?
The bailouts will continues because we will be threatened with the possible dissapearance of our 401ks and IRAs that are all tied to the market.
So we let them get away with taking away our civil liberties, our ability to earn money in savings, and just about anything else all for the illusion...
This picture gave me a good laugh. They say that a picture is worth a thousand words. Paulson looks like Uncle Fester, and Bush is using his "intelligent looking frown/smile/squint.
I am so angry the feds are giving Citigroup more money. They gave them $25 billion previously and they used it for acquisitions instead of freeing up credit or helping homeowners restructure their mortgages. Now they're giving them another $20 billion. What for, so they can buy more companies and become an even larger entity?
Why don't people understand that government IS the problem with the economy, not the solution.
Giving BILLIONS of dollars in taxpayer's money to private corporations is irresponsible. I have no stake in Citigroup, AIG, any of the big 3 automakers, or any other PRIVATE business. Stop forcing me to pay for someone else's mistakes.
These bailouts are making things worse, not better. Creating money out of thin air increases inflation and causes the price of everything to rise. All the bailouts are doing is reaffirming that personal responsibility is no longer necessary and is rewarding failure.
President Bush didn't create this mess. Bill Clinton, Barney Frank, Nancy Pelosi nad crew created it by forcing banks to give out subprime mortgages. Banks proceeded to give people loans, even though they would never be able to repay them.
Remember to vote for Jim Martin for Senate!
Early voting is today, tomorrow, and Wednesday. Election day is December 2nd.
I cast my vote today; the line was not very Democrat friendly. Get out your vote to help us on our way to a filibuster-proof majority!
Now Obama's saying we have to act quickly. Last time I heard that before I put out a lot of money, I was on a used car lot. I hope he has not become a Washington regular before he's even sworn in!
Paulsen said the same thing 2 months ago & we bought it. Let's learn something this time. I believe they are the ones with alot to loose, not us.
Let's give every person living in the U.S. a million dollars, 300 million- sounds like a deal -a small amount compared to the bailouts that are taking place-give it back to the taxpayers.
As far as I am concerned we owe this man NO RESPECT. Why should we respect him ? He never showed respect for the American people when he was lying to them and trying to scare them half to death with his lies. He is an idiot and he is getting far better than he deserves. He should be sitting behind bars.
It is nice to see President Bush cooperating with the incoming administration. Putting aside partisan politics and putting America first! What a concept. Good luck to the Bush family. It should not have turned out this way, but I guess the Republicans did the best they could do considering their philosophy.
Can you imagine what that conversation sounded like??? Barack was using words that George most likely had no idea what they meant......i.e. recession, deflation, depression, save, bail out , laid off, foreclosure etc......hurry January 20th......get here quickly.........
Even Bush himself can't wait for Obama to take over!
I bet he's whistling "Take this job and shove it" under his breath!
Why is Paulson look like the VILLAIN character in the BOND movies?
Bush and his friends have been stuffing themselves for a long time. Him and Shotgun Cheney need to leave out the backdoor --NOW!
Bush to Paulson: " My pockets are full, how about yours" ?
these two should spend their 'retirement' in prison for what they've done to our country.
I hope Obama gets them and gets them good.
Bush promises close cooperation with Obama.....
..and we're supposed to start believeing him now.?
Rick @ 1:07-
Really? That's all you got? For months, your posts have been nothing but negative. We're trying to turn a new page and we still get you and the other right wingers spewing nonsense.
Republican policies have put us where we are (no the Democrats are not blameless) and now is the time to do something different. What say we give it 6 months or so?
There needs to be a congressional hearing required to prove their viability and identify where every penny goes to ensure there are no management bonuses or golden parachutes, with monthly updates, along with a Financial Czar to manage the funds, to ensure there are no more 'funny' loans just to move the money to their partners, just like the automakers. Also, how about the taxpayer benefiting through drastically reduced interest rates on loans through CitiGroup companies, especially if the focus is on taxpayers instead of pumping more money into corporations, based on the failed 'trickle down' concept.
This is not a Bush problem or Obama problem. This is the whole of America's problem. Bush and Obama should work together as much as possible.