Bush Warns Painful Recession If Foreclosure Crisis Rescue Package Is Delayed

September 28th, 2008 | Tags: Foreclosure Crisis

On Wednesday 24th September 2008 President Bush warned the country that if the bill containing the foreclosure related rescue package is delayed by the Congress. It will cause erasing of retirement savings, more foreclosures, increasing unemployment and closed shutter for businesses. He said, “Our entire economy is in danger.”

Bush’s ominous warnings came soon after he had extended unusual invitations to Obama and McCain together with other prominent leaders to a meeting at White House on Thursday to work out a compromise formula. Either Obama or McCain will be inheriting the mantle of the foreclosure mess within few months.

In a 12 minute address to the nation during prime-time Bush said, “Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.” He was speaking form the East Room of White House. Bush hoped that the tough rescue package would rescue the nation from the jaws of the foreclosure crisis. He explicitly gave his support to many of the changes that were asked for recently both from the right and the left. Nevertheless he cautioned that he would not agree to regulations that would restrict free economic growth. Bush wanted that the bill “should be enacted as soon as possible.”

The bailout rescue plan is meeting with heavy criticism. The conservatives within the Republicans of Bush are up in arms against the heavy price tag and unheard of intervention in the private sector. There is however general consensus on the view that something should be immediately done so as to stop the collapse of the system itself. But the timing and the size of the bill are being questioned. Almost daily the administration is adjusting to changes.

Bush explained that although he was not keen to put into business the taxpayer’s money it has had to be done, not to save individual financial houses but the nation. Bush also tried to parry charges made by Democrats about not rewarding the CEO’s of the failed companies. Bush reiterated, “With the situation becoming more precariously the day, I faced a choice: to step in with dramatic government action or to stand back and allow the irresponsible actions by some to undermine the financial security of all. These are not normal circumstances.”

To all appearances the President appeared as an economics professor during the address!