The White House on Friday asked that Americans be “patient” with the government’s response to the global economic crisis, and said their plan will work if given enough time.
“The markets are digesting a lot of information,” said White House press secretary Dana Perino, after the Dow Jones Industrial Index plummeted in morning trading Friday.
Mrs. Perino said “it’s taking a while” for the government response to get moving, partly because the administration wants to make sure they handle the hiring of contractors and purchase of financial assets properly and in a way that does not waste taxpayer dollars.
“I would ask that Americans would be a little bit patient with this program. We do think it’s big enough to solve this problem,” Mrs. Perino said.
Congress earlier this month authorized the Treasury Department to use $700 billion in taxpayer funds to buy up bad assets from financial institutions and hold onto them long enough so they could be resold at a profit.
Since then, the administration has reacted to continued bad news in the stock market by saying they will spend $250 billion of that $700 billion to purchase equity shares directly in U.S. banks.
Thursday, the Federal Deposit Insurance Corporation said they will step in to help homeowners avoid foreclosure.
European governments have also partly nationalized their banks to keep them from collapse, and will discuss prospects for a new global regulatory scheme at an economic summit in Washington on Nov. 15.
Mrs. Perino announced that the summit of world leaders from the Group of 20 nations will be held at the National Building Museum, near the Chinatown area of the District.
The White House also released the names of three men who will organize and “define the agenda” for the summit.
The three task force members are:
Dan Price, deputy national security advisor for international economic affairs; Reuben Jeffery III, under secretary, economic, energy and agricultural affairs; and David H. McCormick, under secretary for international affairs.