President Bush speaks to Americans about crisis

Thursday September 25, 2008, 12:32 a.m.

President Bush addressed Americans about the financial crisis this evening. His goal was to both explain the origins of the crisis from his perspective and the intent of the rescue plan that he put before Congress. Explaining his own preference for market oriented solutions he admitted that because of excessive lack of due diligence in vetting mortgages, excessive greed on Wall street and excessive risk taking with financial derivatives that grew out of the real estate market and its bubble the US faced a major crisis that required massive government aid in the form of the package that Treasury Secretary Paulson and Fed Chairman Ben Bernanke were negotiating with Congress. In the spirit of bipartisanship that emphasized the importance of an agreement over the legislation to ensure its quick passage he has invited the two Presidential candidates Barack Obama and John McCain to meet with him along with congressional leaders to endorse a compromise plan. This is a good development that should result in a better more carefully calibrated plan that will accomplish the goal of injecting necessary liquidity into the system, correctly shadow price the assets to be acquired so as to protect the tax payers' interests,provide for some measure of equity quid pro quo with respect to the firms that are assisted, satisfy the public's call for justice over executive compensation, provide for effective oversight and ensure an orderly return to financial stability.

One can only wish him and the Congressional leadership well in their endeavours. Failure to achieve their goals would lead to very serious consequences for the American and global economy.President Bush pointed this out and he was correct to do so.