English subtitles for clip: File:2009-12-12 President Obama's Weekly Address.ogv

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The President:
Over the past two years,
more than seven million Americans

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have lost their jobs,
and factories and businesses across

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our country have been shuttered.

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In one way or another, we've
all been touched by the worst

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economic downturn since
the Great Depression.

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The difficult steps we've taken
since January have helped to

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break our fall, and begin
to get us back on our feet.

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The economy's growing again.

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The flood of job losses we saw
at the beginning of this year

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slowed to a relative
trickle last month.

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These are all good
signs for the future,

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but they're little comfort
to all our neighbors who remain out

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of a job.

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And my solemn commitment
is to work every day,

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in every way that I can,
to push this recovery forward and build

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a new foundation for our
lasting growth and prosperity.

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That's why I announced some
additional steps this week to

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spur private sector hiring.

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We'll give an added boost to
small businesses across our

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nation through additional tax
cuts and access to lending they

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desperately need to grow.

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We'll rebuild more of our vital
infrastructure and promote

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advanced manufacturing in clean
energy to put Americans to work

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doing the work we need done.

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And I've called for the extension of unemployment

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insurance and health benefits
to help those who've lost their

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jobs weather these storms until
we reach that brighter day.

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But even as we dig our
way out of this deep hole,

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it's important that we address
the irresponsibility and

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recklessness that got us into
this mess in the first place.

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Some of it was the result
of an era of easy credit,

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when millions of Americans
borrowed beyond their means,

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bought homes they
couldn't afford,

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and assumed that housing prices
would always rise and the day of

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reckoning would never come.

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But much of it was due to
the irresponsibility of large

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financial institutions on Wall
Street that gambled on risky

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loans and complex
financial products,

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seeking short-term profits and
big bonuses with little regard

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for long-term consequences.

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It was, as some put it,
risk management without the management.

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And their actions, in the
absence of strong oversight,

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intensified the cycle of
bubble-and-bust and led to a

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financial crisis that threatened
to bring down the entire economy.

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It was a disaster that could
have been avoided if we'd had

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clearer rules of the road
for Wall Street and actually

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enforced them.

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We can't change that history.

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But we have an absolute
responsibility to learn from it,

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and take steps to prevent a
repeat of the crisis from which

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we're still recovering.

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And that's why I've proposed a
series of financial reforms that

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would target the abuses we've
seen and leave us less exposed

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to the kind of breakdown
we just experienced.

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They would bring new
transparency and accountability

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to the financial markets, so
that the kind of risky dealings

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that sparked the crisis would
be fully disclosed and properly regulated.

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They would give us the tools to
ensure that the failure of one

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large bank or financial
institution won't spread like a

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virus throughout the
entire financial system.

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Because we should never again
find ourselves in the position

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in which our only choices are
bailing out banks or letting our

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economy collapse.

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And they would consolidate the
consumer protection functions

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currently spread across half a
dozen agencies and vest them in

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a new Consumer Financial
Protection Agency.

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This agency would have the
authority to put an end to the

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misleading and dishonest
practices by banks and

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institutions that market
financial products like credit

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cards and debit cards;
mortgage and auto and payday loans.

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These are all commonsense reforms
that respond to the obvious problems

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exposed by the financial crisis.

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But, as we've learned
so many times before,

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common sense doesn't always
prevail in Washington.

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Just this week, Republican
leaders in the House summoned

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more than 100 key lobbyists for
the financial industry to a "pep

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rally," and urged them to
redouble their efforts to block

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meaningful financial reform.

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Not that they needed
the encouragement.

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The industry has already
spent more than $300 million on

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lobbying to influence
the debate this year.

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The special interests and their
agents in Congress claim that

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reforms like the Consumer
Financial Protection Agency will

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stifle consumer choice and that
updated rules and oversight will

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frustrate innovation in
the financial markets.

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But Americans don't choose to be
victimized by mysterious fees,

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and changing terms, and pages
and pages of fine print.

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And while innovation
should be encouraged,

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risky schemes that threaten
our entire economy should not.

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We can't afford to let the same
phony arguments and bad habits

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of Washington kill financial
reform and leave American

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consumers and our economy
vulnerable to another meltdown.

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Yesterday, the House passed
comprehensive reform legislation

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that incorporates many of the
essential changes we need,

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and the Senate Banking Committee
is working on its own package of reforms.

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I urge both houses to act as
quickly as possible to pass real

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reform that restores free
and fair markets in which

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recklessness and greed are
thwarted; and hard work,

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responsibility, and
competition are rewarded --

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reforms that work for
businesses, investors,

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and consumers alike.

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That's how we'll keep our
economy and our institutions strong.

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That's how we'll restore a
sense of responsibility and

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accountability to both
Wall Street and Washington.

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And that's how we'll safeguard
everything the American people

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are working so hard to build
-- a broad-based recovery;

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lasting prosperity; and
a renewed American Dream.

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Thanks.