Accessibility links

Breaking News

Bush Calls Financial Rescue Plan 'Right Choice'

Many Americans are worried about the state of the U.S. economy and their own financial future, but President George Bush says the financial crisis will ease.

The president tried to reassure Americans during his weekly radio address Saturday, calling a $700 billion plan to rescue the troubled financial industry "the right choice."

Mr. Bush signed the historic bailout bill into law Friday, but he warned that not all of the legislation's measures will have an immediate impact.

The bill allows the government to buy failing investments from troubled financial companies in an effort to restore lender and investor confidence, and to restart economic growth.

But while President Bush praised lawmakers for working on the bailout bill in bipartisan fashion, the Democrats used their weekly radio address, given by Ohio Governor Ted Strickland, Saturday to criticize the economic policies of Republican presidential nominee John McCain.

Treasury Secretary Henry Paulson said this week he will get right to work hiring experts needed to manage the program. It is likely to take at least a month before Wall Street firms receive any of the money.

A previous version of the bill was voted down in the House of Representatives because of objections about the cost, and the concept of using taxpayer money to rescue companies that made bad investments.

But the House approved the plan Friday after the Senate made some changes to the bill.

House Speaker Nancy Pelosi, a Democrat, promised to hold a congressional hearing to investigate parts of the financial industry.

President Bush says it is likely that the government and taxpayers will be able to recoup most of the cost of the bailout eventually.

Some information for this report was provided by Reuters.