x Abu Dhabi, UAEFriday 28 July 2017

Bush says bailout needs time to work

George W Bush praises the approval of the bailout package but warns that relief will not be instant.

George W Bush acknowledged that it was a difficult vote for both Democratic and Republican legislators.
George W Bush acknowledged that it was a difficult vote for both Democratic and Republican legislators.

President George W Bush today praised legislators from the two major US parties after the approved the US$700 billion (Dh2.6 trillion) bailout package for the financial system, but warned that relief would not be instant. The Senate approved the measure on Wednesday, while the House of Representatives approved the measure yesterday, having rejected a slightly different bill on Monday. Mr Bush immediately signed it into law. In his weekly Saturday morning radio address, Mr Bush acknowledged that it was a difficult vote for both Democratic and Republican legislators. "I appreciate their willingness to work across party lines in the midst of an election season," Mr Bush said. The measure "provides the necessary tools to address the underlying problem in our financial system," the president said. Mr Bush said that the final cost to taxpayers will be "much lower" than US$700bn, because as time passed the value of the assets the government purchased "will likely go up in price". That means "that the government should eventually be able to recoup much, if not all, of the original expenditure," Mr Bush said. "By taking all these steps, we can begin to put our economy on the road to recovery. While these efforts will be effective, they will also take time to implement. "My administration will move as quickly as possible, but the benefits of this package will not all be felt immediately. The federal government will undertake this rescue plan at a careful and deliberate pace to ensure that your tax dollars are spent wisely." However, Mr Bush said he was confident that by "getting our markets moving" with the measure, "we will help unleash the key to our continued economic success: the entrepreneurial spirit of the American people". *AFP