Bush defends auto industry bailout

President Bush used his weekly radio address to defend his decision to bail out the struggling Big Three U.S. automakers.

"Government has a responsibility to safeguard the broader health and stability of our economy," Bush said. "If we were to allow the free market to take its course now, it would almost certainly lead to disorderly bankruptcy and liquidation for the automakers."

More from Bush:

Under ordinary economic circumstances, I would say this is the price that failed companies must pay -- and I would not favor intervening to prevent automakers from going out of business. But these are not ordinary circumstances. In the midst of a financial crisis and a recession, allowing the U.S. auto industry to collapse is not a responsible course of action.

A more responsible option is to give auto companies an incentive to restructure outside of bankruptcy -- and a brief window in which to do it.

Bottom line is that the collapse of the automakers has been postponed by three months. It now becomes Obama's problem. Merry Christmas, Barack. Your pal, W.

Read the full transcript of Bush's radio address at the link below:

Radio Address By President Bush To The Nation