Czarbie The Liar

~Snooper~

I am having mixed emotions at the moment here. I don't know which emotion to express but utter and pure contempt comes to mind. Czarbie the Liar is quoted as saying:

[...] "Keep in mind House Democrats and Senate Democrats and me and the leadership are all pretty burned up about this thing," Obama said at a news conference after the TV interviews. "This wasn't happening on our watch. We weren't preventing some of the regulatory reforms that might have prevented us from getting here." [...]

The Democrat Party...culture of liars, fools and damned frauds.

More lies from Czarbie here at TWS...

Pakistani and US Troops Exchange Lead and Steel

~Snooper~

BREAKING NEWS

Pakistani soldiers fired at American reconnaissance helicopters that were escorting Afghan and U.S. ground troops along the volatile border Thursday, sparking a five-minute ground battle between the countries which have been allies in the war on terrorism, officials said.

Attempting to play down the incident - the first serious exchange with Pakistani forces acknowledged by the U.S. - Pakistan's president said only "flares" were fired at foreign helicopters that he said had strayed across the border from Afghanistan into his country.

The five-minute exchange, which could have easily escalated into a much bigger conflict, could heighten tensions at a time the U.S. is stepping up cross-border operations in a region known as a haven for Taliban and al Qaeda militants. [...]

This isn't good news, folks but it was bound to happen. I hope the libtards are happy now that their wish of the former President leaving Pakistan leadership because he was friends with GWB. I wonder how many Troop casualties will please them this time when the Real Deal starts.

Understanding The "Crisis" On Wall Street

~Snooper~

The Heritage Foundation has written extensively on the current financial oopsies. Go here. Therein is a video. Have fun learning what the Leftinistra don't want you to know.

Heritage fellow JD Foster explains what led to the credit crisis and why it cannot be ignored. There are unprecedented problems in the financial markets. The Federal Funds Rate is the No. 1 tool that the Federal Reserve Board has for governing monetary policy. The Federal Funds Rate jumped much higher than the Federal Reserve Board had targeted and the Federal Reserve lost control of it. The Federal Reserve is pumping money into places where it is not working and neglecting places where monetary liquidity is needed.

.

Want Energy Independence? Vote Conservative!

~Snooper~

The offshore drilling ban is soon expiring in a little over 5 days. Get on your phones now and call your Congress Critters. We have more energy sources under our own soil that we will be selling it to the folks we are buying it from now. It is called supply and demand.

American Solutions Fact Sheet is here
Contact data for your Senator is here

Keep up the pressure folks. The problem with Conservatives is this. We win on an issue and thinking that discussion is now over with, we sit down and go back to couch potato status while the Leftinistra sneak in like the cowards that they are a pull crap like Reid tried.

STAY VIGILANT

The No Oil Zone - I Told Yas!

~Snooper~

OK. A few days ago, folks were all atwitter about the Dems "capitulating" on the offshore drilling moratorium. The moratorium is due to expire in 5 days and change. However, the Leftinistra will do whatever it takes to get that moratorium reinstated one way or another.

In my post enititled, Energy Freedom Day 01 OCT 2008 Soon Upon Us, there is a link to the Energy Freedom Day web site where one can view the countdown to energy independence. There is also a link there which will take you to Let Freedom Ring where caution was expressed.

In the midst of the financial non-crisis crisis, Sen Reid, King of Tent City (aka Reno) tried to sneak in a ban on shale oil exploration. It was soundly defeated but, all in all, the Leftinistra are not finished yet. Beyond a shadow of a doubt, this is the worst congress ever. In the midst of turmoil, Reid tries to please his darling Nancy.

Sec 1602 continues ban on oil shale. The language follows:

SEC. 1602. Notwithstanding any other provision of law, including section 152 of division A of H.R. 2638 (110th Congress), the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, the terms and conditions contained in section 433 of division F of Public Law 110–161 shall remain in effect for the 19 fiscal year ending September 30, 2009.

Thankfully, this was sent to the shredder where it belongs.

Czarbie: Suppressor of Constitutional Rights

~Snooper~

The following is yet one more example of Czarbie's unsportsmanlike conduct. Not only is he a sore loser, a liar and a racist, he tries to use the legal system to shut people down that he feels is being not nice...to him. I suppose if one were to agree with him, support him and vote for him, those folks would be free to do and say what they please no questions asked and would be considered as being nice. HT to Gateway Pundit, please visit the "Truth Squads" report here. They are uncannily reminiscent of the South American, Middle Eastern and Asian Death Squads.

Then again, his people sure do like that quack job Che Guacamole.

There are more examples of this but the above is the most recent.

PJM has a piece up on this as well from a while back.

More at Memeorandum...

History and Facts: Alien To the Leftinistra

~Snooper~

Some time ago, Q&O published a piece describing the inner workings of people living in Peter Pan zone. The dwellers of fantasy land were totally amazed that our enemies can learn tactics. Tactics? We don't need no stinkin' tactics! Maybe the Leftinistra need to learn from our enemies and develop new tactics. Lord knows they need to come up with new material. Their crap is so old it doesn't stink anymore.

Also a while back, RWN brought us the Top 10 Gaffes of Czarbie. I could have sworn there were more. Oh. Wait. That was the Top 10. My bad. The whole article is at Townhall.

As I have written before, History Will Vindicate President Bush, Charles Krauthammer has confirmed. However, it is politically expedient for cowards to blame everything on our current President. For such a stupid man and for such a horrible President, using their words, President Bush sure has beaten them at every turn and every issue. I don't think that says good or positive things about his critics. They are self-professed "better" and "smarter" than he. If so, why did he trounce them so? Amazing.

They remind me of the idiots of Code Skank and the other idiots in Vermont.

[...] I’m not sure what they mean by “frightened many people into silence.” I’m having a hard time keeping up with what all the Bush-hating, Palin-bashing, McCain-disparaging wackjobs are jawing about over the general wacked clamor. But maybe even the most shameless Obama watercarrier in the press finds Bugliosi’s level of wack embarrassing. [...]

Andrew Fell says for the anti-Americanists to drop it already. Well, I tell them to drop dead.

We have heard that Roosevelt was such a GREAT President, correct? Well, Chicago Ray gives a history lesson the Leftinistra run away from:

When they spit out that ad nauseum talking point claiming that Palin the VP CHOICE isn't qualified enough to step in and be president if McCain is elected and some lunatic lib from the Daily Kos crew decides to assassinate him.

There once was a great president who to this day the libs point to as one of their few successes in history, and he too was a small town Governor like Sarah Palin and his name was Roosevelt....[...]

Indeed. I never thought that he was even sort of good President. He is the one that got socialism embedded into our politics. Whatever y'all do, DON'T get Chicago Ray going on Czarbie!

We all know why Czarbie isn't winning and we all know why Czarbie will not be the next President. The Leftinistra were wrong on the Troop Surge. The Leftinistra were wrong about McCain. The Leftinistra are on the wrong side of the energy crisis. The Leftinistra are on the wrong side of the financial crisis.

Any questions? Remember, the Leftinistra thrive on rewriting history.

DING! DONG! The Wicked Bail Out Is Dead!

~Snooper~

HALLELUJAH!

Polipundit sees daylight while the opposition to rhyme and reason see their tunnels collapsing.

The White House summit apparently blew up when McCain indicated support of an alternative option, a more free-market-oriented proposal being developed in the House. If there was ever a time to hammer the Congressional switchboard, it's now! [...]

Newsflubbers get hammered, crushed and defeated and the American tax payer comes out victorious.

Dan brings us this as an answer to the current "crisis"

While Barney Frank wallows in the quicksands of his denial, the American People by a vast majority know where this all started and who is to blame. We also demand that justice is served and heads roll over this. As Lindsey Graham announced that the congressional ignorance was dead for the time being, Paulson walks away dejected. However, the blame game will continue which is a good thing. It will give everyone enough time to solidify the fact that it has been the DNCers that have brought this upon the nation, pure and simple.

As the lap dogs of socialist imperialism whine and grind their teeth after being trounced, they try and spin and lie (go figure) about who said what and why. This is getting pretty interesting to say the least.

More at Memeorandum...

Dems Causing Bailout Deal To Collapse

~Snooper~

Breaking News from ABCNEWS.com:

TREASURY SECRETARY HENRY PAULSON FEARS BAILOUT DEAL MAY COLLAPSE; PLEADS WITH DEMS, 'PLEASE DON'T BLOW THIS UP,' ABC NEWS HAS LEARNED

Well, apparently, the Leftinistra don't think the rescue bill is socialist enough.

Hot Air has some details...so do the libtards but who cares what their breath smells like anyway?

Politics and Stupid

~Snooper~

We need to revise our dictionaries. Politics=Stupid and Stupid=Politics. And they both mean pointless. Or useless. Or inane. With that, let us take a look at some reports about politics - or stupid.

Steve Keen brings us he story about the second stimulus package that the "stupid" are trying to sneak through while the nation is distracted by the non-emergency financial emergency which is an invented and contrived non-emergency emergency. These are the same "stupid" that were against the first non-stimulus stimulus package before they were for it. Seeing that the first non-stimulus package was a total flop like many of us said that it would be, what makes the "stupid" think that a second one will be a success? And, if it were a good thing to start with, why, then. try to sneak it in when no one is paying attention?

Breitbart brings us a story about "stupid" that wants to sterilize the poor and have the government pay for it.

WDSU: New Orleans State Rep. John LaBruzzo said that the program he is thinking about would be voluntary. It would pay poor women $1,000 to have their fallopian tubes tied.

If my history knowledge bears this out, wasn't this tried before someplace? It is called Eugenics, people.

Duane Lester brings us another installment on the roots of the current financial non-crisis crisis and the "stupid" that brought it to us. There is really no need to go deeper into that subject here in this post because I have already written enough about it. Please visit All American Blogger for another history lesson from another angle. By the way Duane, if you stop by, great job!

Ace brings our attention to several "stupids". This one is about the "rescue" mission going bust and the reasons because. This one is about the same deal as before with a twist. Still, it is about "stupid".

Roger W. Gardner brings a story of real "stupid". It seems that Joe Klein, another synonym for "stupid" has a problem with McCain stomping all over the "stupid" aka Czarbie.

Dumbass, aka "stupid", proves my point about the Leftinistra. This clown seems to think that because McCain wants the American tax payer protected, that is a stunt. Yep. Talk Left. Another synonym for "stupid".

Now, for some real "stupid", check out Andrew Fells' piece at Weasel Zippers. It is about the Code Skank whores visiting with our enemies on our soil and licking the dribbling from their shorts, apparently.

Cassy Fiano brings us more "stupid" than anyone should really have to "bare" - more Code Skank data. Just horrible but, someone has to write about them. And God bless her for it, too.

In more news of "stupid", JimmyZ brings us a blurb about king "stupid" Reid and shale oil restrictions.

TABs lets us know about the "stupid" in Minnekstan. It seems as though after the "stupid" had their cultural jihad meeting with more of the "stupid", they walked out of a family restaurant without paying their tab. Once again, "stupid" thinks the tab is all on the American People.

Ben Smith tells the tale of true "stupid" trying to obstruct constitutional rights of the NRA. "Stupid" doesn't like their message.

John Boehner relates another "stupid" in regards to voting fraud within congress itself.

Jim Geraghty talks of "stupid" - Biden (redundant I know) - remembering things that never happened. My parents used to call that convenient memory.

That concludes today's class on synonyms.

Adding Insult To Injury

~Snooper~

Now that the horses have escaped from the barns across America, it is time to finally getting around to close those barn doors. We cannot tolerate having the horses come back you know.

The Australian Reserve Bank regulators are beginning to take a look to see if they have idiots in their system just like we Americans do. Nothing like a little manufactured crisis to spark some interest around the world - no pun intended. I wonder if they will find the equivalent to Bill Clinton, Andrew Cuomo and Robert Rubin lurking in some dark closet someplace like we Americans have. One never knows which smiling face is going to shove the shiv between the 4th and 5th rib, give it a side-to-side with a quarter turn twist just to be sure.

The Clinton administration helped create the financial crisis we are experiencing today. The Clinton administration with the usual Democrat players botched the economy beginning in the early 1990’s.

Yep. Sounds like stuck on stupid alright. Speaking of being stuck on stupid, does anyone really know why Reid "suddenly" reversed his admonition to Sen McCain yesterday? Well, it turns out that only a few days before, the ReidCo Clan were whining that if McCain wasn't on board, everything would be lost. Don't believe it? Watch the video here. Sounds to me that ReidCo and Clan, excluding that clueless guy Barack (Reid's words and not mine), are playing political football once again. It is no wonder than that when McCain displays leadership in a crisis, fabricated or not, Czarbie doesn't recognize it at all.

Speaking of leadership, there isn't a fiscally conservative person on the planet that would, under normal circumstances, support this bail out. And no, I will not call it a rescue. I am not interested in rescuing idiots.

While we are speaking about various interesting concepts, what is the deal with ANOTHER back door "rescue" in regards to the auto industry? If they cannot make vehicles, let them retool and make Czarbie Dolls. How hard can that be? Get a couple old used up panties from Code Skank, fill them with hay and tie some knots. Use a marker pen to make some eyes and what-not and, voila!

Remember folks, the Leftinistra Press and the idiots which comprise the ReidCo and PelosiCo sycophants are working diligently to cover the tracks of Dodd and Frank. Be ever vigilant and watch six, maintain five.

Czarbie Gafforama...New President Takes Office in 40 Days

~Snooper~

STACLU has the whole story but, come on! Czarbie. Not ready for anything but a shrink.

[...] “With respect to the debates, it’s my belief that this is exactly the time when the American people need to hear from the person who, in approximately 40 days, will be responsible for dealing with this mess.” [...]

Now, I know this is one of those "misspeaks" - or not - who knows; but imagine if McCain had "slipped" like this.

Fox report here with video here.

Listen To The Libtards Whine...And Lie

~Snooper~

Yes, I know...snarkles.

I find it sadly comical how the pathetic socialists in this nation continue to prattle on with their lies, preaching to their own tone-deaf choirs. Silly things. Everyone knows - especially the libtards - that the DNC created this current financial mess the country is in. The evidence is overwhelming.

What is truly and ultimately sad is that the libtards absolutely adore the 4-Month Motor Pool Wonder Boy little Jonny Soltz. He yaps about "the troops not getting any time off for financial crisis". How sad is that? I wonder if the idiots that drool over this fraud know that the coward had to get "bailed out" and was eventually "reassigned". What an idiot.

Along those double standard lines of thought, I wonder what the libtards would say if a conservative would say anything remotely like this: CNN

“If Sarah Palin isn’t enough of a reason for you to get over whatever your problem is with Barack Obama, then you damn well had better pay attention,” Rep. Alcee Hastings of Florida said at a panel about the shared agenda of Jewish and African-American Democrats Wednesday. Hastings, who is African-American, was explaining what he intended to tell his Jewish constituents about the presidential race. “Anybody toting guns and stripping moose don’t care too much about what they do with Jews and blacks. So, you just think this through,” Hastings added as the room erupted in laughter and applause.

Jerk. Well, what else should we expect from a disgraced fraud?

As McCain offers up some leadership and stopped campaigning to address the financial "mess", as I previously reported here, I find it fascinating that the libtards begin the spinmeisters' yarns about how Czarbie was the one that initiated the thought process. Typical. He can't even follow right. Czarbie said he wasn't going but changed his mind when President Bush called him and "invited" him. Invited? More like, "Hey! Dummy! Get your butt up here now! Ya got that? Good!"

So, now, everyone will be in DC tomorrow morning to discuss which crone from the DNC is going to be covered up fir the Common Good of the singularly worst Congress in the history if this nation. Holy cow!

Naturally, the most incompetent and the most useless idiot that has ever disgraced the currently disgraceful Halls of Conmen has stated that McCain's decision was a stunt. Ya. Schure. Run along, little man. Reno, I mean Tent City has some questions for your sorry self. Reid. Idiot.

Following Reid's lead - of all people - Czarbie called out McCain and said pretty much the same thing. This reveals that if Czarbie is going to follow the lead of Reid, after Reid said that Czarbie was clueless last week, this makes me wonder of his mental state of well being. The REAL stunt was Czarbies folks saying this:

A spokesman for Democratic presidential candidate Barack Obama said in a statement Wednesday afternoon that Obama reached out to Republican rival John McCain Wednesday morning about issuing a joint statement “outlining their shared principles and conditions for the Treasury proposal.” [...]

Czarbie. Not ready for anything. Except, naturally, a severe spanking at each and every debate. Once again, following McCain's lead, after saying that he wasn't going to join anyone anywhere, he is now going to DC. Methinks the libtards have that "panic mode" thing all backwards. Poor libtards. It would seem to me that from all of the spankings that have been inflicted on them since late 2006, they would at least come up with some new material.

I wonder Bash or Atlas Shrugs has any problems with Reid? Hey, Czarbie? Can you explain this?

Securities & Investment: Money to Congress (Open Secrets)

Top 2o Members (influence and lobbying money)

Top 20 Members

Candidate	Amount
Obama, Barack (D)	$10,059,210
Clinton, Hillary (D-NY)	$7,355,720
McCain, John (R)	$7,029,893
Dodd, Christopher J (D-CT)	$2,932,532
Coleman, Norm (R-MN)	$626,850
McConnell, Mitch (R-KY)	$620,236
Emanuel, Rahm (D-IL)	$600,500
Sununu, John E (R-NH)	$595,650
Baucus, Max (D-MT)	$547,500
Durbin, Dick (D-IL)	$515,475
Biden, Joseph R Jr (D-DE)	$432,450
Lautenberg, Frank R (D-NJ)	$424,233
Shays, Christopher (R-CT)	$362,720
Reed, Jack (D-RI)	$359,550
Rangel, Charles B (D-NY)	$329,850

Just curious there, Skippy. Czarbie in the Senate for 4 years and McCain for 26 years. Do the math people.

I am pleased that the debate will go on as planned, IAW ABC News. I am going to enjoy the hell out of watching Czarbie get spanked.

More whining shall come.

Collective Data - Financial Meltdown?

~Snooper~

Remember the fairy tale? The Boy Who Cried Wolf

There once was a shepherd boy who was bored as he sat on the hillside watching the village sheep. To amuse himself he took a great breath and sang out, "Wolf! Wolf! The Wolf is chasing the sheep!"

The villagers came running up the hill to help the boy drive the wolf away. But when they arrived at the top of the hill, they found no wolf. The boy laughed at the sight of their angry faces.

"Don't cry 'wolf', shepherd boy," said the villagers, "when there's no wolf!" They went grumbling back down the hill.

Later, the boy sang out again, "Wolf! Wolf! The wolf is chasing the sheep!" To his naughty delight, he watched the villagers run up the hill to help him drive the wolf away.

When the villagers saw no wolf they sternly said, "Save your frightened song for when there is really something wrong! Don't cry 'wolf' when there is NO wolf!"

But the boy just grinned and watched them go grumbling down the hill once more.

Later, he saw a REAL wolf prowling about his flock. Alarmed, he leaped to his feet and sang out as loudly as he could, "Wolf! Wolf!"

But the villagers thought he was trying to fool them again, and so they didn't come.

At sunset, everyone wondered why the shepherd boy hadn't returned to the village with their sheep. They went up the hill to find the boy. They found him weeping.

"There really was a wolf here! The flock has scattered! I cried out, "Wolf!" Why didn't you come?"

An old man tried to comfort the boy as they walked back to the village.

"We'll help you look for the lost sheep in the morning," he said, putting his arm around the youth, "Nobody believes a liar...even when he is telling the truth!"

Ergo, the DNC and to a degree, GWB. President Bush is one of those "bleeding heart" globalist Republicans and he calls himself a "compassionate conservative". Recently, his compassion has overridden his conservatism, in my humble opinion. I have stated many times that whatever a compassionate conservative is, I want no part in it. He has been a stalwart leader on the correct path in the Global War On Terror. Of that there can be no mistake. However, in this case and in other cases, he is on the wrong path.

It doesn't matter what "they" call this government intervention; it amounts to the same thing...highway robbery of the American People. Government intervention is what got us into this self-induced quagmire to begin with so what will further government intervention - or intrusion - do for us? It will save a small percentage of homes from being foreclosed upon and it will save a small percentage of small businesses from going under...maybe. There are no guarantees...only empty promises. Bail out, buy out, government intervention or rescue plan is all the same - pure cover up for the individuals in Congress that were charged by their duties of office to ensure that this did not happen. They failed and they failed miserably and the tax payer is to be held to the fire? Unacceptable is the word that comes to mind. Who, then, is to hold the ones responsible for this through the years accountable? Why does it have to be We The People? There is a better plan.

I have posted the text of the speech delivered by President Bush here and the video of the speech here. I have not yet completed the parsing but there is a special series of statements or remarks that I found curiously odd within the context of the speech itself and the situation which prompted the speech to be delivered. (key points emphasized by myself)

[...] I’m a strong believer in free enterprise. So my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business. Under normal circumstances, I would have followed this course. But these are not normal circumstances. The market is not functioning properly. There’s been a widespread loss of confidence. And major sectors of America’s financial system are at risk of shutting down. [...]

If this was anyone else, as in Czarbie the Fraud uttering these words, I would have had a spat of serious snort-snort chuckle-chuckle snort-snort incidents and could very well have spewed coffee all over the keyboard, screen and anything else in the surrounding area. Have you ever noticed that whenever the word "but" is used in this context really bad things are about to be brought up? Curious, is it not?

People? This alleged panic is politically induced idiocy. It is an election cycle. The Leftinistra needed something like this to distract from other issues - name any one - that the Leftinistra have been on the wrong side of for decades. They have been on the wrong side of the Global War On Terror since right after they were all for it until the 2006 election cycle when they saw that their only chance of winning in 2006 was to try and lose the war for political expediency, consequences be damned - including the current "non-crisis crisis". The Leftinistra are masters at non-issue issues and we let them to get away with it. Well, not anymore they don't but try they do.

To put it bluntly, the DNC members and its leaders have led this country down this current path and the evidence is overwhelmingly proof positive of that fact. No matter the shrilling and squealing to the contrary, facts are facts. Naturally, facts repel your basic socialist but, that is to be expected.

I am all for a Special Prosecutor. How about you? Now, I do know that something has to be done to correct what the socialists have wrought upon this nation and we can use this issue to brow beat them back into their collective closets and forever encase or enclose them into the Great Abyss of Obscurity for generations to come. Their principles, procedures and tenets has created this debacle and we cannot allow them to go unscathed. In order for myself to get on board with this - this - craziness, several things must be openly and on the record so stated.

If there is going to be a major OPEN investigation with DAILY public reports; if their is going to be MANDATORY restitution; if there are GOING to be convictions; if there is GOING to be disbarring if those conditions are met; if there are GOING to be impeachment proceedings of members of Congress that FAILED in their oversight duties; if there are GOING to be censured Congress Critters for failing the American People for political expediency; if there are GOING to be charges of never to hold public office again anywhere within the United States and her territories and possessions for any Congress Critter or finance manager; if the individuals that brought this situation upon the American People are GOING to be exposed in a public forum to be aired, televised or otherwise broadcast; if Congress Critters are shown to be at fault and they are to be REMOVED from office permanently; if those responsible are GOING to be humiliated in public; if the ones responsible are GOING to be charged with defrauding the American People; if Congress Critters shown to be at fault are GOING to be removed from their Chairs of power and vacate their offices within Congress; no matter who they are, then and only then will I be on board with this.

Too many times, the government bails people out and behind closed doors, deals are made and the same ones, Mr Raines, return to do the same damn things time and time again. Enough is enough.

Catch the shrill at Memeorandum : here ; here ; here ; here ; here ; here ;

Polipundit has a discussion thread that is worthy of reading.

Others as well: AAB ; PL ; DS ; PD ; P'sC ; TA ; HF ; Mel ; IBD ; IBD ; NYS ; TH ; TH ; MM ; MAC ; ANM ;

President Bush Speaks on Economic Crisis

~Snooper~

HT Michelle Malkin

ADDRESS BY THE PRESIDENT TO THE NATION
State Floor
9:01 P.M. EDT
24 SEPT 2008

THE PRESIDENT: Good evening. This is an extraordinary period for America’s economy. Over the past few weeks, many Americans have felt anxiety about their finances and their future. I understand their worry and their frustration. We’ve seen triple-digit swings in the stock market. Major financial institutions have teetered on the edge of collapse, and some have failed. As uncertainty has grown, many banks have restricted lending. Credit markets have frozen. And families and businesses have found it harder to borrow money.

We’re in the midst of a serious financial crisis, and the federal government is responding with decisive action. We’ve boosted confidence in money market mutual funds, and acted to prevent major investors from intentionally driving down stocks for their own personal gain.

Most importantly, my administration is working with Congress to address the root cause behind much of the instability in our markets. Financial assets related to home mortgages have lost value during the housing decline. And the banks holding these assets have restricted credit. As a result, our entire economy is in danger. So I’ve proposed that the federal government reduce the risk posed by these troubled assets, and supply urgently-needed money so banks and other financial institutions can avoid collapse and resume lending.

This rescue effort is not aimed at preserving any individual company or industry — it is aimed at preserving America’s overall economy. It will help American consumers and businesses get credit to meet their daily needs and create jobs. And it will help send a signal to markets around the world that America’s financial system is back on track.

I know many Americans have questions tonight: How did we reach this point in our economy? How will the solution I’ve proposed work? And what does this mean for your financial future? These are good questions, and they deserve clear answers.

First, how did our economy reach this point?

Well, most economists agree that the problems we are witnessing today developed over a long period of time. For more than a decade, a massive amount of money flowed into the United States from investors abroad, because our country is an attractive and secure place to do business. This large influx of money to U.S. banks and financial institutions — along with low interest rates — made it easier for Americans to get credit. These developments allowed more families to borrow money for cars and homes and college tuition — some for the first time. They allowed more entrepreneurs to get loans to start new businesses and create jobs.

Unfortunately, there were also some serious negative consequences, particularly in the housing market. Easy credit — combined with the faulty assumption that home values would continue to rise — led to excesses and bad decisions. Many mortgage lenders approved loans for borrowers without carefully examining their ability to pay. Many borrowers took out loans larger than they could afford, assuming that they could sell or refinance their homes at a higher price later on.

Optimism about housing values also led to a boom in home construction. Eventually the number of new houses exceeded the number of people willing to buy them. And with supply exceeding demand, housing prices fell. And this created a problem: Borrowers with adjustable rate mortgages who had been planning to sell or refinance their homes at a higher price were stuck with homes worth less than expected — along with mortgage payments they could not afford. As a result, many mortgage holders began to default.

These widespread defaults had effects far beyond the housing market. See, in today’s mortgage industry, home loans are often packaged together, and converted into financial products called “mortgage-backed securities.” These securities were sold to investors around the world. Many investors assumed these securities were trustworthy, and asked few questions about their actual value. Two of the leading purchasers of mortgage-backed securities were Fannie Mae and Freddie Mac. Because these companies were chartered by Congress, many believed they were guaranteed by the federal government. This allowed them to borrow enormous sums of money, fuel the market for questionable investments, and put our financial system at risk.

The decline in the housing market set off a domino effect across our economy. When home values declined, borrowers defaulted on their mortgages, and investors holding mortgage-backed securities began to incur serious losses. Before long, these securities became so unreliable that they were not being bought or sold. Investment banks such as Bear Stearns and Lehman Brothers found themselves saddled with large amounts of assets they could not sell. They ran out of the money needed to meet their immediate obligations. And they faced imminent collapse. Other banks found themselves in severe financial trouble. These banks began holding on to their money, and lending dried up, and the gears of the American financial system began grinding to a halt.

With the situation becoming more precarious by the day, I faced a choice: To step in with dramatic government action, or to stand back and allow the irresponsible actions of some to undermine the financial security of all.

I’m a strong believer in free enterprise. So my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business. Under normal circumstances, I would have followed this course. But these are not normal circumstances. The market is not functioning properly. There’s been a widespread loss of confidence. And major sectors of America’s financial system are at risk of shutting down.

The government’s top economic experts warn that without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold:

More banks could fail, including some in your community. The stock market would drop even more, which would reduce the value of your retirement account. The value of your home could plummet. Foreclosures would rise dramatically. And if you own a business or a farm, you would find it harder and more expensive to get credit. More businesses would close their doors, and millions of Americans could lose their jobs. Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college. And ultimately, our country could experience a long and painful recession.

Fellow citizens: We must not let this happen. I appreciate the work of leaders from both parties in both houses of Congress to address this problem — and to make improvements to the proposal my administration sent to them. There is a spirit of cooperation between Democrats and Republicans, and between Congress and this administration. In that spirit, I’ve invited Senators McCain and Obama to join congressional leaders of both parties at the White House tomorrow to help speed our discussions toward a bipartisan bill.

I know that an economic rescue package will present a tough vote for many members of Congress. It is difficult to pass a bill that commits so much of the taxpayers’ hard-earned money. I also understand the frustration of responsible Americans who pay their mortgages on time, file their tax returns every April 15th, and are reluctant to pay the cost of excesses on Wall Street. But given the situation we are facing, not passing a bill now would cost these Americans much more later.

Many Americans are asking: How would a rescue plan work?

After much discussion, there is now widespread agreement on the principles such a plan would include. It would remove the risk posed by the troubled assets — including mortgage-backed securities — now clogging the financial system. This would free banks to resume the flow of credit to American families and businesses. Any rescue plan should also be designed to ensure that taxpayers are protected. It should welcome the participation of financial institutions large and small. It should make certain that failed executives do not receive a windfall from your tax dollars. It should establish a bipartisan board to oversee the plan’s implementation. And it should be enacted as soon as possible.

In close consultation with Treasury Secretary Hank Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox, I announced a plan on Friday. First, the plan is big enough to solve a serious problem. Under our proposal, the federal government would put up to $700 billion taxpayer dollars on the line to purchase troubled assets that are clogging the financial system. In the short term, this will free up banks to resume the flow of credit to American families and businesses. And this will help our economy grow.

Second, as markets have lost confidence in mortgage-backed securities, their prices have dropped sharply. Yet the value of many of these assets will likely be higher than their current price, because the vast majority of Americans will ultimately pay off their mortgages. The government is the one institution with the patience and resources to buy these assets at their current low prices and hold them until markets return to normal. And when that happens, money will flow back to the Treasury as these assets are sold. And we expect that much, if not all, of the tax dollars we invest will be paid back.

A final question is: What does this mean for your economic future?

The primary steps — purpose of the steps I have outlined tonight is to safeguard the financial security of American workers and families and small businesses. The federal government also continues to enforce laws and regulations protecting your money. The Treasury Department recently offered government insurance for money market mutual funds. And through the FDIC, every savings account, checking account, and certificate of deposit is insured by the federal government for up to $100,000. The FDIC has been in existence for 75 years, and no one has ever lost a penny on an insured deposit — and this will not change.

Once this crisis is resolved, there will be time to update our financial regulatory structures. Our 21st century global economy remains regulated largely by outdated 20th century laws. Recently, we’ve seen how one company can grow so large that its failure jeopardizes the entire financial system.

Earlier this year, Secretary Paulson proposed a blueprint that would modernize our financial regulations. For example, the Federal Reserve would be authorized to take a closer look at the operations of companies across the financial spectrum and ensure that their practices do not threaten overall financial stability. There are other good ideas, and members of Congress should consider them. As they do, they must ensure that efforts to regulate Wall Street do not end up hampering our economy’s ability to grow.

In the long run, Americans have good reason to be confident in our economic strength. Despite corrections in the marketplace and instances of abuse, democratic capitalism is the best system ever devised. It has unleashed the talents and the productivity, and entrepreneurial spirit of our citizens. It has made this country the best place in the world to invest and do business. And it gives our economy the flexibility and resilience to absorb shocks, adjust, and bounce back.

Our economy is facing a moment of great challenge. But we’ve overcome tough challenges before — and we will overcome this one. I know that Americans sometimes get discouraged by the tone in Washington, and the seemingly endless partisan struggles. Yet history has shown that in times of real trial, elected officials rise to the occasion. And together, we will show the world once again what kind of country America is — a nation that tackles problems head on, where leaders come together to meet great tests, and where people of every background can work hard, develop their talents, and realize their dreams.

Thank you for listening. May God bless you.

Video is here and here. My commentary will come in a following post.