Bush explains rescue plan to Chamber

WASHINGTON, Oct. 17 (UPI) -- U.S. President George Bush said the full impact of the federal government's aggressive response to rescue the financial markets will take time.

"The federal government has responded to this crisis with systematic and aggressive measures to protect the financial security of the American people," Bush said in a speech before the U.S. Chamber of Commerce. "The actions will take more time to have their full impact."

The crisis didn't occur overnight, but over a decade when "the combination of low interest rates and inflow of capital from around the world produced a period of easy credit here in the United States," he said.

Federal officials took four steps, including preserving the stability of the overall financial system and providing liquidity, Bush said. The government also provided "substantial new protections for responsible consumers, businesses, and investors," he said, as well as worked with partners overseas also affected by the credit crisis.

Finally, the government undertook a "historic effort" to address the problem behind the credit crunch when Congress passed a $700 billion bailout to help banks rebuild capital, he said.

"We took this measure as a last resort," the president said. "Had the government not acted, the hole in our financial system would have grown larger."

The United States has "the most talented and enterprising and creative workers in the world," Bush told the Chamber. "We are a country where all people have the freedom to realize their potential and chase their dreams. ... This promise will guide us through the challenges we face today."