Bush meets with Cabinet on economy

President Bush convened a meeting of his Cabinet Wednesday morning to lay out the “extraordinary” measures the government has taken in recent days to try and halt the ongoing financial crisis. 

{mosads}For the second day in a row, Bush stressed that those actions are “temporary” and designed to aid the free market, “not replace free enterprise.”

On Tuesday, the president announced a plan for the federal government to buy $250 billion in equity from several of the nation’s largest banks.

“Decisions we took to enhance liquidity and make sure our financial instruments are strong is a temporary decision,” the president said before the meeting. “For example, the equity purchases in the banks [are] designed so that these shares will eventually be sold back to the government.”

Bush stressed that the government will be a “passive investor” and that the banks will remain privately controlled.

“In other words, there won't be government officials sitting on the board of private companies,” the president said.

Bush acknowledged that the actions being taken are “extraordinary,” but he said they are necessary and he is “confident in the long run this economy will come back.”