President Bush urges approval of bailout plan
He tries to inspire confidence in the markets with remarks directed at members of Congress who are preparing to vote on the $700-billion package.
WASHINGTON -- President Bush made an early-morning pitch today to win Congressional approval of the $700-billion bailout plan -- and to persuade the market that help was finally on the way.
He said the plan, announced Sunday after intense negotiations among congressional leaders from both parties, "addresses the root cause of the financial crisis" and would restore the flow of credit.
He emphasized that it would establish "a guarantee program that will insure assets at no cost to the taxpayer," and would make sure that "failed executives do not receive a windfall from your tax dollars."
"The bill provides strong, bipartisan oversight so Americans can be certain that their tax dollars are used carefully and wisely," the president said.
He spoke on a White House driveway outside the oval office, delivering barely three minutes of remarks intended to instill confidence that the administration and House and Senate leaders from both parties were singing from the same songbook and that as soon as the two chambers act -- with votes as early as today in the House -- the economy will turn a corner.
Although Bush's remarks were timed for a wide audience watching morning television, his real audience in this case was much smaller: reluctant rank-and-file members of Congress and, most immediately, traders gearing up for the opening of the stock markets.
He called the measure "an extraordinary agreement to deal with an extraordinary problem in our economy."
"With this strong and decisive legislation, we will help restart the flow of credit, so American families can meet their daily needs and American businesses can make purchases, ship goods, and meet their payrolls. We'll make clear that the United States is serious about restoring confidence and stability in our financial system," Bush said.
Still, his challenge is steep.
Republicans are wondering: Will it push the government into areas best left to the free market -- and at what cost?
Democrats are wondering: Will it do more to bailout Wall Street than help keep Main Street afloat?
The next day or so should answer this question: Was the president able to convince his diverse audience -- on Capitol Hill, Wall Street and Main Street?
To those worried about the cost, he said the administration predicted that "over time, much, if not all, of the tax dollars we invest will be paid back."
Seeking to give members political cover, he acknowledged that they were facing "a difficult vote" but that the original bill had been improved."
"I'm confident that members of both parties will support it," Bush said.
He added: "Congress can send a strong signal to markets at home and abroad by passing this bill promptly. Every member of Congress and every American should keep in mind: A vote for this bill is a vote to prevent economic damage to you and your community."
james.gerstenzang@latimes.com
