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businesses create most of the growth in our they pass that free trade agreement with economy, most of the job growth. And a sure Korea. It’s in our interests we do so. way to stop that from happening is to take But, no, I understand that people are— money out of their treasury. when they write down their assets, they may So I’m a strong believer that tax cuts work, need to get a little extra capital on their bal- and we need to keep taxes low. ance sheets. And it doesn’t trouble me at all; Yes, sir. Dow Jones man [Henry ‘‘Jay’’ it doesn’t. What troubles me is the fact that Pulizzi, Dow Jones Newsletter]. How’s the they—is that some of this paper isn’t worth market? what people thought it was, and it’s going Q. I don’t know. I’ll check. to have to work through the system. The President. Okay. Good. Thanks. Listen, thank you all. Have a wonderful holiday season. Appreciate it. U.S. Financial Markets/Foreign Investors NOTE: The President’s news conference began at Q. The mortgage crisis is leading some of 10:01 a.m. in the James S. Brady Press Briefing the Nation’s biggest financial institutions to Room at the White House. In his remarks, he seek investments from funds that are con- referred to Gen. Dan K. McNeill, USA, Com- trolled by foreign governments. Is that some- mander, International Security Assistance Force, thing that concerns you? NATO, Afghanistan; President Hamid Karzai of The President. No, I like to get our Afghanistan; President Bashar al-Asad of Syria; money back. I think the world that is open and President-elect Lee Myung-bak of South Korea. A reporter referred to President Nicolas for investment and trade is a world that will Sarkozy of France. The Office of the Press Sec- lead to overall prosperity. It’s interesting that retary also released a Spanish language transcript they’re going to have to do that. My attitude of this news conference. is, is that Wall Street needs to put all their— put it all out there for everybody to see. They need to have the—off-balance sheet this and Remarks at a Swearing-In Ceremony put out there for investors to take a look at. for James B. Peake as Secretary of And if there’s some write-downs to be done, Veterans Affairs they need to do it now. December 20, 2007 And so I’m fine with capital coming in from overseas to help bolster financial insti- The President. Good morning. Thanks for tutions; I don’t think it’s a problem. I think the warm welcome to the Department of what will be a problem is to say, we’re not Veterans Affairs. I am proud to introduce going to accept foreign capital, or we’re not your new Secretary, Lieutenant General going to open markets, or we become protec- James Peake. And I am pleased to be joined tionists. Protectionism would be a huge mis- by his wife, Janice, and daughter Kimberly, take for this country. And what’s going to and her husband, Mack. I know they’re be an interesting test next year on whether proud of what Jim has accomplished during or not we’re going to be a country that trades his career, and I thank them for supporting with others and opens up markets is these him in his work ahead. free trade votes. I applaud the Congress for I thank the Vice President for joining me passing the Peruvian free trade deal. But we today. We had a long ride over here, Jim. got some votes coming up with Colombia. [Laughter] Plenty of time to visit. [Laughter] That’s going to be an interesting test to deter- I want to thank the Secretary for joining us— mine whether or not we remain—that we re- Secretary of Defense Bob Gates; honored main an open economy and that we expect you’re here, sir. Appreciate , others to treat us the way we treat them. Secretary of Labor; Deputy Secretary Gor- And I spoke this morning to the President- don Mansfield—I’m going to say something elect of South Korea. And the people there about you here in a minute. I appreciate Ad- are going to be watching very carefully as miral Thad Allen, Commandant of the U.S. to whether or not our Congress understands Coast Guard, for joining us. Thanks for com- the importance of the relationship and that ing, Admiral; General Dick Cody, Vice Chief

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of Staff of the Army. I appre- of service. His mother was an Army nurse. ciate all those who wear the uniform who His father was an Army officer, who spent have joined us today as well. most of his 30-year career in the Medical I want to thank Arlen Specter, United Service Corps. And I know they both would States Senator, for joining us. Senator, thanks be proud to see their oldest son, Jim, become for coming. And my Congressman, the Con- the Secretary of Veterans Affairs. gressman from central Texas, Congressman Dr. Peake follows in the footsteps of an- Chet Edwards, chairman of the Military Con- other fine public servant and Vietnam com- struction and Veterans Affairs Appropriations bat veteran, Secretary Jim Nicholson. Subcommittee; proud you’re here. Throughout his career, Jim Nicholson has I want to thank the members of veterans served our Nation with honor and integrity— service organizations who are with us today. as an Army Ranger, an ambassador, and as Audience member. Hoorah! [Laughter] Secretary of Veterans Affairs. Secretary The President. Looking forward to work- Nicholson built on the fine record of his ing with you. [Laughter] And behave your- predecessor, Tony Principi—Mr. Secretary, self. [Laughter] glad you’re here today—and he leaves an im- The Secretary of Veterans Affairs has one pressive legacy of his own. Under his leader- of the most important jobs in our Govern- ship, this Department has worked to meet ment. The Secretary leads a Department of the needs of new veterans returning home more than 240,000 employees, and I want from Afghanistan and Iraq. Secretary Nichol- to thank every one of them for serving our son also launched an effort to modernize the country; appreciate your hard work. The Sec- Department’s information technology sys- retary is charged with a solemn responsi- tems, so we can better protect patients’ per- bility, to ensure our Nation’s veterans receive sonal information. I want to thank Jim for the care and the benefits they deserve. his work on behalf of our Nation’s veterans, Dr. Jim Peake has the skills and experience and I wish him and his wife Suzanne all the to carry out this mission. He is both the first very best. physician and the first general to lead this I also want to thank Deputy Secretary Gor- Department. His 36-year medical career has don Mansfield. He served as the Acting Sec- taken him to military bases across the world. retary for Veterans Affairs since October. And during the opening years of the war on Gordon is a retired Army officer who has terror, he directed the Army Medical De- dedicated much of his career to serving his partment as Army Surgeon General. In that fellow veterans. I’ve benefited from Gordon’s position, he led more than 55,000 medical wisdom and counsel, and he did a terrific personnel and managed an operating budget job as Acting Secretary during this time of of nearly $5 billion. Throughout his long ca- transition. reer, Dr. Peake has worked to improve the Dr. Peake takes office at a critical moment way we deliver medical care to our troops. in the history of this Department. Our Na- And thanks to his efforts, many who once tion is at war, and many new veterans are might have died on the battlefield have re- leaving the battlefield and entering the VA turned home to live lives of hope and prom- system. This system provides our veterans ise. with the finest care, but sometimes the bu- We see this hope and promise in the story reaucracy can be difficult. To address these of Dr. Peake’s own life. Dr. Peake’s first stay problems, our administration, along with the at a military hospital came years before he Secretary’s leadership, is implementing rec- entered his—earned his medical degree at ommendations of the Dole-Shalala Commis- Cornell. It came as a wounded patient during sion on Wounded Warriors. In other words, the . This West Point graduate we’re not going to tolerate bureaucratic received several medals for his valor, includ- delays. We want the very best for our vet- ing the ; he earned a reputation erans. Some of the Commission’s rec- for honor and selflessness. ommendations require the approval of Con- Dr. Peake learned those values from his gress—and Congressman and Senator, we’re loving parents who taught him the meaning looking forward to working with you on

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those. I’ve sent legislation to Congress to Senator George Voinovich of Ohio for spon- carry out these additional recommendations, soring this legislation. and Dr. Peake is going to work with Mem- I remember calling you on the phone, tell- bers from both sides of the aisle to get me ing you that I’m going to propose the same a good bill that I can sign into law. thing you are—talked to George as well— Our Nation has no higher calling than to and it’s been a joy to work with you. provide for those who have borne the cost I want to thank Jim McCrery of the House, of battle, and we will honor our responsibil- Stephanie Tubbs Jones, and Rob Andrews. ities. I am confident in the future of this De- Appreciate you all being here. partment because I have seen firsthand the I want to thank the staff who works hard dedication and character of the men and at the Treasury and HUD to make this deal women who work here. And I am confident work. Appreciate your hard work. that you will have a worthy and strong leader In recent months, our Nation’s housing in our new Secretary. market has faced serious strains. Home val- Congratulations, Jim. I appreciate your ues have fallen in many parts of our country. willingness to serve. And now I ask the Vice At the same time, many homeowners with President to administer the oath. adjustable rate mortgages have seen their monthly payments increase faster than their ability to pay. And now some homeowners NOTE: The President spoke at 11:24 a.m. at the Department of Veterans Affairs. In his remarks, face the prospect of foreclosure. he referred to former Senator Bob Dole and My administration has taken strong steps former Secretary of Health and Human Services to help homeowners avoid foreclosure by Donna E. Shalala, Cochairs, President’s Commis- making it easier to refinance loans. We gave sion on Care for America’s Returning Wounded the Federal Housing Administration greater Warriors. The transcript released by the Office flexibility to refinance loans for struggling of the Press Secretary also included the remarks homeowners. We helped assemble a private- of Secretary Peake. sector group of lenders, loan servicers, inves- tors, and mortgage counselors called the Remarks on Signing the Mortgage HOPE NOW Alliance. This group has agreed on a set of industry-wide standards Forgiveness Debt Relief Act of 2007 to help those with subprime loans refinance December 20, 2007 or modify their mortgages, so more families can stay in their homes. Thank you all for coming. Welcome to the The bill I sign today will help this effort White House. I’m pleased to sign a bill that by ensuring that refinancing a mortgage does will help homeowners who are struggling not result in a higher tax bill. Under current with rising mortgage payments. The Mort- law, if the value of your house declines and gage Forgiveness Debt Relief Act of 2007 your bank or lender forgives a portion of your will protect families from higher taxes when mortgage, the Tax Code treats the amount they refinance their homes. It will help hard- forgiven as money that can be taxed. And working Americans take steps to avoid fore- of course, this makes a difficult situation even closure during a period of uncertainty in the worse. When you’re worried about making housing market. I want to thank Members your payments, higher taxes are the last thing of Congress for getting this bill passed. I ap- you need to worry about. So this bill will cre- preciate it very much. It’s been a joy working ate a 3-year window for homeowners to refi- with you. nance their mortgage and pay no taxes on I thank my Secretary of the Treasury, any debt forgiveness that they receive. And Hank Paulson, and Secretary of Housing and it’s a really good piece of legislation. The pro- Urban Development for vision will increase the incentive for bor- taking the lead in helping people stay in their rowers and lenders to work together to refi- homes. I particularly want to thank the chair- nance loans, and it will allow American fami- man of the Finance Committee, Max Baucus, lies to secure lower mortgage payments with- Senator Debbie Stabenow of Michigan, and out facing higher taxes.

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