President Bush Says Government Actions Meant to Restore Confidence

Following a string of actions from various Federal institutions throughout the morning, President George W. Bush said the recent rescue plan aimed at taking illiquid assets off the balance sheets of financial institutions will help restore confidence in the U.S. financial system.

"America's economy is facing unprecedented challenges, and we are responding with unprecedented action," Bush said at a White House press conference.

The U.S. President reminded listeners that the U.S. economic fundamentals are sound and that the United States is the best place in the world to do business.

The comments came on the heels of a press conference by U.S. Treasury Secretary Henry Paulson, who formally announced his intention to work with lawmakers on legislation allowing government to purchase illiquid assets from the balance sheets of financial institutions and an expansion of the Mortgage Backed Security purchase program.

Paulson also said Fannie Mae and Freddie Mac will resume buying mortgage debt under the surveillance of the Treasury Department.

By Erik Kevin Franco and edited by Stephen Huebl
©CEP News Ltd. 2008