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President Bush Meets with Cabinet
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For Immediate Release Office of the Press Secretary October 15, 2008

President Bush Meets with Cabinet Cabinet Room

˙ /news/releases/2008/10/20081015.wm.v.html ˙˙Presidential Remarks
˙˙Audio

˙˙˙˙˙ In Focus: Economy

9:57 A.M. EDT

THE PRESIDENT: I called my Cabinet together for them to get a full
understanding of the extraordinary actions we've taken. Many of the Cabinet
members are involved in helping make sure this economy is strong in the
future -- no Cabinet member more involved than Secretary Paulson. And we
have taken extraordinary measures because these are extraordinary
circumstances.

As I said yesterday, it's very important for the American people to know
that the program is designed to preserve free enterprise, not replace free
enterprise. Decisions we took to enhance liquidity and make sure our
financial instruments are strong is a temporary decision. For example, the
equity purchases in the banks is designed so that these shares will
eventually be sold back to the government*.

Secondly, the program is limited. In other words, the government will buy
only a certain number of shares in individual banks. These banks will be
privately controlled. The liquidity measures being taken are structured
such that the government will be a passive investor. In other words, there
won't be government officials sitting on the board of private companies.

These are extraordinary measures, no question about it. But they're well
thought out, they are necessary, and I'm confident in the long run this
economy will come back.

Mr. Secretary, I want to thank you and your team for working hard during
these extraordinary times.

We analyzed the situation very carefully. And the American people must
understand that this carefully structured plan is aimed at helping you. If
I'd have thought this situation would have been contained only to Wall
Street, we'd have had a different response. But in our judgment, had we not
acted decisively at the time we did, the credit crunch, the inability for
banks in your communities to loan to your businesses would have affected
the working people and the small businesses of America. And that's
unacceptable to me and that's unacceptable to this Cabinet.

And so I'm looking forward to going to Michigan today to talk to small
business owners and community bankers and workers that have been affected
by the economy. I'm looking forward to hearing what they have to say. And
I'm looking forward to sharing my thoughts about why the government has
taken these temporary measures designed to make sure that their lives are
going to have the best shot at dealing with this financial crisis.

Thank you very much.

END 9:00 A.M. EDT

*banks

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