February 24th, 2009
09:37 PM ET
6 years ago

Obama: Credit flow is economy's 'lifeblood'

Making sure the nation's lending industry is strong is crucial to jumpstarting its economy, President Barack Obama said Tuesday.
Making sure the nation's lending industry is strong is crucial to jumpstarting its economy, President Barack Obama said Tuesday.

WASHINGTON (CNN) – Making sure the nation's lending industry is strong is crucial to jumpstarting its economy, President Barack Obama said Tuesday, even as he acknowledged anger over the government banking bailout Congress approved last year.

"I know how unpopular it is to be seen as helping banks right now, especially when everyone is suffering in part from their bad decisions. I promise you - I get it," Obama said in his first address to a joint session of Congress. "But I also know that in a time of crisis, we cannot afford to govern out of anger, or yield to the politics of the moment.

Watch: President Obama vows oversight

He said he plans a new lending fund to provide college, auto and small-business loans and a housing plan that will help struggling families refinance and pay smaller mortgages. He said he wants to continue propping up the nation's largest banks when they're in danger, but will hold them accountable for how the money is spent.

"This time, CEOs won't be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet," Obama said.

"Those days are over."

Filed under: Obama address
soundoff (8 Responses)
  1. Mike Gilbert

    Did President Obama just re-write history? Which American ever invented the automobile?

    February 24, 2009 09:49 pm at 9:49 pm |
  2. Ula Nejad Sacramento, Ca

    This is what i call THE ODESITY OF HOPE. Yeah..forget that i took part. Its legal now because Iam president. This fight is not over my friend. Good nite America.

    February 24, 2009 09:56 pm at 9:56 pm |
  3. Veronica

    Credit card companies are at the root of the problem. They can raise
    rates whenever they want strangling the economy. Any serious
    reform would involve credit card companies limits on interest they can charge.
    I have created a group on facebook called credit card companies are the devil please join me to write a letter to Obama to help stop this thievery against the American people.

    February 24, 2009 10:18 pm at 10:18 pm |
  4. Typical White Person

    How about individuals STOP using credit? Delayed gratification can do wonders for your budget and your moral fiber content.

    February 24, 2009 10:52 pm at 10:52 pm |
  5. marie dixon

    This time is the key. The Bush Administration did not demand accounting or oversight when banks were given the initial TARP money, he will.

    February 24, 2009 10:55 pm at 10:55 pm |
  6. Rusty

    The whole problem is because we rely on credit instead of sound monetary policies. Remember when we had a strong dollar and the gold standard? This is what we need to really get us out our slump.

    February 24, 2009 11:23 pm at 11:23 pm |
  7. fearful for my country

    Will someone please tell this joker that the banks aren't lending any money and as a matter of fact, they are raising rates and raping credit card customers left and right. A score of well over 700 gets a 28% percent interest rate because the banks are getting greedy and OBAMA and his cronies are allowing them to do this to the very taxpayers who bailed their greedy bums out.

    February 24, 2009 11:46 pm at 11:46 pm |
  8. Marcel Wiedenbrugge

    Not credit, but cash is the life blood of the economy. Credit is the lubricant for the economic process. However, credit (trust) must be supported by performance (payment).

    Irresponsibly providing credit (like the subprime mortgages) ultimately leads to a failure in cash and that's where the real problems start (defaulting). Think in terms of (global) supply chains to have a better understanding of the implications.

    October 3, 2010 07:07 am at 7:07 am |

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