PRESIDENT BUSH ADDRESSES AMERICA

The Executive Explanation of the Current Financial Crisis

On Wednesday, September 24, at 9pm EST, President George W. Bush addressed the American people on the crisis facing the U.S. economy. His supporters will probably say it was one of the finest addresses he’s given during his presidency. The opponents of this administration may have to concede that it was, well, not bad.

The president spoke with clear, simple and concise language, giving a plain English rendition of where the U.S. economy currently is and how it got there. He seemed to be talking in a genuine and sincere manner and, not only spoke to those on Wall Street but, was taking his message directly to the average citizens on Main Street.

The speech was well prepared and, as a sideline, gets the administration an A for timing. They couldn’t have picked a more necessary moment for the president to address the public. The speech had a non-partisan approach and contained very little finger pointing…perhaps too little.

The president’s address said nothing of his administration’s failure to see the numerous warning signs that have been flashing by in recent years. Nor did he mention the attempts of many in Congress to caution him and his administration of the evidence they were seeing of trouble brewing on the financial horizon.

Secretary Paulson and the Treasury Department’s bailout solution has set all heads spinning, with the sheer enormity of the proposed package; $700 billion; and who knows what the final dollar figure would eventually be. It’s clear to everyone how the last “blank check” turned out (the Iraq war cost estimates). They’re calling this a “Financial 9/11.” Seems a bit sacrilegious to compare the lives of thousands, lost in the twin towers, to the financial losses on Wall Street, especially when this crisis was caused by our own elite execs.

But, this situation does require swift action, and the Treasury secretary was quick to come up with a plan, with the help of the Fed, et al. However, the need for swift action does not need to invite thoughtless action. This bailout will be a huge step, a very long-term financial commitment and an extreme burden on the American taxpayer, for years to come.

This solution focuses on the well being of large financial institutions, with no penalty assessed against the industry leaders who brought about this crisis, either through malice, greed, poor judgment, irresponsible practices, or just plain stupidity. Some of them will actually leave (get fired) carrying millions of dollars out the front doors with them…the much talked about “Golden Parachutes.”

There MUST be elements of this plan that adequately judge and punish those responsible; there MUST be fully transparent oversight of the future behavior and practices of these institutions; there MUST be a clear and public, periodic (annually perhaps?) reporting of the ongoing status of the development and progress of the plan; there MUST be an equitable return to the American people for the patience and burden they are being asked to bear; there MUST be a reckoning.

It is now the very serious challenge of the American Congress to pull together and emerge with a truly effective solution to this crisis. So far, they’ve shown a rare, high level of bipartisanship, asking for accountability and expressing genuine concern for the taxpayers. Even the two presidential candidates are prepared to return to their senatorial offices to do the work that their titles imply.

At the end of the day the hope is: that Congress won’t be forced into an unpalatable compromise; that those responsible will experience real justice; and, that those most vulnerable in America, its people, will not only survive this “Financial 9/11,” but will prosper, in spite of it. America has always shown its truest colors at the hardest of times. We’re all holding our collective breath.

For more see:

ABC News Online

BBC World News America

Miami Herald


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