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Bush defends US debt rescue plan

Posted by dorbsra Saturday, September 20, 2008

President Bush says a big package is needed to deal with a big problem

US President George W Bush has defended a rescue package to tackle the worst financial markets crisis for decades.

The cost to taxpayers from shoring up markets was better than the alternative of job losses and blighted retirement accounts, he said in a radio address.

The US Treasury is proposing a fund worth up to $800bn (£440bn) to buy back a large proportion of the bad debt in the US mortgage market.

The fund would hold the debts until they can be sold off in the future.

Mr Bush said the measures required the US "to put a significant amount of taxpayer dollars on the line".

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