(October 15, 2008)--President Bush said Wednesday the government will be a "passive investor" in shoring up banks and that the financial industry rescue plan is designed to preserve rather than replace the free enterprise system.
In a meeting with his Cabinet at the White House Wednesday morning, Mr. Bush said he's confident that in the long run the economy will "come back."
On Tuesday, his administration announced a $250 billion cash infusion for selected banks to help stabilize the system and nudge banks into lending again.
Despite the plan, Wall Street remains wary of job losses, the housing crisis and consumers' decision to curb spending.
The Dow industrials were down by more than 350 points in Wednesday morning trading, amid more evidence the economy is either in a recession or heading that way.
The government reported Wednesday that retail sales plunged in September by 1.2 percent, almost double the decline that analysts had expected, and wholesale prices, excluding energy and food costs, posted their biggest year-to-year gain in more than 17 years last month.
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