Today President Obama -- flanked by Treasury Secretary Tim Geithner, Chair of the Council of Economic Advisers Christy Romer, former Federal Reserve Chairman Paul Volcker, Financial Services Committee Chairman Barney Frank and others -- delivered a major economic address at Federal Hall in New York City.

During the speech, the President discussed the Administration’s plan to wind down government involvement in the financial sector, outlined a strong case for immediate action on regulatory reform and reiterated the importance of global coordination to prevent future crises.

Excerpts from President Obama’s prepared remarks:

”… We could not separate what was happening in the corridors of our financial institutions from what was happening on factory floors and around kitchen tables. Home foreclosures linked those who took out home loans and those who repackaged those loans as securities. A lack of access to affordable credit threatened the health of large firms and small businesses, as well as all those whose jobs depended on them. And a weakened financial system weakened the broader economy, which in turn further weakened the financial system.

“The only way to address successfully any of these challenges was to address them together, and so this administration – with terrific leadership by my Treasury Secretary, Tim Geithner, as well the Chair of my Council of Economic Advisers, Christy Romer, and the Chair of the National Economic Council, Larry Summers – moved quickly on all fronts, initializing a financial stability plan to rescue the system from the crisis and restart lending for all those affected by the crisis. By opening and examining the books of large financial firms, we helped restore the availability of two things that had been in short supply: capital and confidence. By taking aggressive and innovative steps in credit markets, we spurred lending not just to banks, but to folks looking to buy homes or cars, take out student loans, or finance small businesses. Our home ownership plan has helped responsible homeowners refinance to stem the tide of lost homes and lost home values.

“And the recovery plan is providing help to the unemployed and tax relief for working families, all while spurring consumer spending. It’s prevented layoffs of tens of thousands of teachers, police officers, and other essential public servants. And thousands of recovery projects are underway all across America, putting people to work building wind turbines and solar panels, renovating schools and hospitals, and repairing our nation’s roads and bridges.

“Eight months later, the work of recovery continues. And although I will never be satisfied while people are out of work and our financial system is weakened, we can be confident that the storms of the past two years are beginning to break.

“In fact, while there continues to be a need for government involvement to stabilize the financial system, that necessity is waning. After months in which public dollars were flowing into our financial system, we are finally beginning to see money flowing back to the taxpayers. This doesn’t mean taxpayers will escape the worst financial crisis in decades unscathed. But banks have repaid more than $70 billion, and in those cases where the government’s stake has been sold completely, taxpayers have actually earned a 17-percent return on their investment. Just a few months ago, many experts from across the ideological spectrum feared that ensuring financial stability would require even more tax dollars. Instead, we’ve been able to eliminate a $250 billion reserve included in our budget because that fear has not been realized.

“While full recovery of the financial system will take a great deal more time and work, the growing stability resulting from these interventions means we are beginning to return to normalcy. But what I want to emphasize is this: normalcy cannot lead to complacency.

“Unfortunately, there are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them. They do so not just at their own peril, but at our nation’s. So I want them to hear my words: We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses. Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall.

“That’s why we need strong rules of the road to guard against the kind of systemic risks we have seen. And we have a responsibility to write and enforce these rules to protect consumers of financial products, taxpayers, and our economy as a whole. Yes, they must be developed in a way that does not stifle innovation and enterprise. And we want to work with the financial industry to achieve that end. But the old ways that led to this crisis cannot stand. And to the extent that some have so readily returned to them underscores the need for change and change now. History cannot be allowed to repeat itself.

“Instead, we are calling on the financial industry to join us in a constructive effort to update the rules and regulatory structure to meet the challenges of this new century.”

On the Consumer Financial Protection agency:

”First, we’re proposing new rules to protect consumers and a new Consumer Financial Protection Agency to enforce those rules…The Consumer Financial Protection Agency will have the power to ensure that consumers get information that is clear and concise, and to prevent the worst kinds of abuses…By setting ground rules, we’ll increase the kind of competition that actually provides people better and greater choices, as companies compete to offer the best product, not the one that’s most complex or confusing.”

On closing loop holes in our existing regulatory system:

“…While holding the Federal Reserve fully accountable for regulation of the largest, most interconnected firms, we’ll create an oversight council to bring together regulators from across markets to share information, to identify gaps in regulation, and to tackle issues that don’t fit neatly into an organizational chart. We’ll also require these financial firms to meet stronger capital and liquidity requirements and observe greater constraints on their risky behavior…. Even as we’ve proposed safeguards to make the failure of large and interconnected firms less likely, we’ve also proposed creating what’s called “resolution authority” in the event that such a failure happens and poses a threat to the stability of the financial system. This is intended to put an end to the idea that some firms are “too big to fail.” For a market to function, those who invest and lend in that market must believe that their money is actually at risk. And the system as a whole isn’t safe until it is safe from the failure of any individual institution.”

On the necessity of a coordinated global response:

“…The United States is leading a coordinated response to promote recovery and to restore prosperity among both the world’s largest economies and the world’s fastest growing economies. At a summit in London in April, leaders agreed to work together in an unprecedented way to spur global demand but also to address the underlying problems that caused such a deep and lasting global recession. This work will continue next week in Pittsburgh when I convene the G20, which has proven to be an effective forum for coordinating policies among key developed and emerging economies and one that I see taking on an important role in the future… As the United States is aggressively reforming our regulatory system, we will be working to ensure that the rest of the world does the same. ”

Today the DNC released a new web video “Lest We Forget” which chronicles coverage of the financial meltdown one year ago.

The video below features two Elkhart residents - talking about their daily hopes and struggles - as they anticipated President Obama's visit:

Industry officials expect that this $2.4 billion investment, coupled with another $2.4 billion in cost share from the award winners, will result directly in the creation tens of thousands of manufacturing jobs in the U.S. battery and auto industries.

- $1.5 billion in grants to U.S. based manufacturers to produce batteries and their components and to expand battery recycling capacity

- $500 million in grants to U.S. based manufacturers to produce electric drive components for vehicles, including electric motors, power electronics, and other drive train components

- $400 million in grants to purchase thousands of plug-in hybrid and all-electric vehicles for test demonstrations in several dozen locations; to deploy them and evaluate their performance; to install electric charging infrastructure; and to provide education and workforce training to support the transition to advanced electric transportation systems.

And here’s an excerpt from President Obama’s remarks:

“…The battle for America's future will be fought and won in places like Elkhart and Detroit, Goshen and Pittsburgh, South Bend, Youngstown –- in cities and towns across Indiana and across the Midwest and across the country that have been the backbone of America. It will be won by making places like Elkhart what they once were and can be again –- and that's centers of innovation and entrepreneurship and ingenuity and opportunity; the bustling, whirring, humming engines of American prosperity.

“For as the world grows more competitive, we can't afford to run the race at half-strength or half-speed. If we hope to lead this century like we did the last century, we have to create the conditions and the opportunities for places like Elkhart to succeed. We have to harness the potential –- the innovative and creative spirit –- that's waiting to be awakened all across America.

“See, I don't want to just reduce our dependence on foreign oil and then end up being dependent on their foreign innovations. I don't want to have to import a hybrid car -- I want to be able to build a hybrid car here. I don't want to have to import a hybrid truck -- I want to build a hybrid truck here. I don't want to have to import a windmill from someplace else -- I want to build a windmill right here in Indiana. I want the cars of the future and the technologies that power them to be developed and deployed right here, in America.

“And that's just the beginning. In no area will innovation be more important than in the development of new ways to produce, use, and save energy. So we're not only doubling our capacity to generate renewable energy and building a stronger and smarter electric grid. We've helped reach an agreement to raise fuel economy standards. And for the first time in history, we passed a bill to create a system of clean energy incentives which will help make renewable energy the profitable kind of energy in America -– while helping to end our dependence on foreign oil and protect our planet for future generations.

“The bill passed the House; we're now working to pass legislation through the Senate. Because we know that real innovation depends not on government, but on the generative potential of the American people. If the American people get a clear set of rules, if they know what's needed, what challenges we've got to meet, they'll figure out how to do it…”

A few key facts: Every single House Republication voted against the American Recovery and Reinvestment Act. In May, the Recovery Act increased personal, disposable income by $17 billion. Last week, the Department of Education announced it was releasing $2.7 billion in aid to support state education budgets months ahead of schedule. And right now, over 2,000 highway projects are already under way and over $20 billion in transportation construction funds have been put to work. There’s absolutely no denying that without the Recovery Act our economy would be in much worse shape. According to a recent analysis by respected economist Mark Zandi, by the end of next year, the Recovery Act “…leaves the unemployment rate almost 2 percentage points lower” than it would have been otherwise.

To point: Earlier this week, the DNC released a TV ad calling on Senate Minority Leader Mitch McConnell to stop playing partisan games and start offering real solutions. Then yesterday, the DNC held a press conference call to talk about Recovery Act projects and job creation in Ohio, and released a new web video which highlights John Boehner’s (OH) extreme hypocrisy and factual inaccuracy in his claim that none of the contracts for Ohio infrastructure projects resulting from Recovery Act had been okayed. As the video’s narrator puts it: “His own state’s newspaper found that Boehner was flat wrong.” In fact, in Boehner’s district alone nearly $15 million has been authorized or awarded to recovery projects that are putting more and more Ohioans back to work everyday. You can watch the ad below.

UPDATE: In an oped this week, Republican Whip Jon Kyl called for the cancellation of the economic recovery money and said the funds are not putting Americans to work. Taking Kyl to task, Arizona Democratic Party Executive Director Luis Heredia and DNC Press Secretary Hari Sevugan held a conference call this afternoon to highlight the importance of economic recovery funding for Arizona projects. The DNC also released a new web video, "Job Killing John."

President Obama made another strong statement in the Rose Garden today, urging Democrats and Republicans alike to seize the opportunity to create a new clean energy economy and come together to support the bill. Governor Tim Kaine also released a statement this morning (posted earlier by Jonah), and this afternoon, OFA launched a web page urging people to call their members of Congress before tomorrow’s vote to ask them to support the legislation. Have you told your representative where you stand?

According to a Washington Post/ABC poll released this morning, three-quarters of Americans think the federal government should regulate the release of climate-change causing greenhouse gas emissions from power plants, cars and factories.

Meanwhile, House Republicans led by John Boehner (OH) and Mike Pence (IN) have resorted to scare tactics and false information in an attempt to stop ACES from passing. The “Party of No” is denying science, delaying progress and siding with the oil and coal lobby, instead of acting in the best interests of the American people.

UPDATE (by Cloe): Here's an excerpt of the President's remarks from the Rose Garden:

"...Now, make no mistake -- this is a jobs bill. We're already seeing why this is true in the clean energy investments we're making through the Recovery Act. In California, 3,000 people will be employed to build a new solar plant that will create 1,000 jobs. In Michigan, investments in wind turbines and wind technology is expected to create over, 2,600 jobs. In Florida, three new solar projects are expected to employ 1,400 people.

"The list goes on and on, but the point is this: This legislation will finally make clean energy the profitable kind of energy. That will lead to the creation of new businesses and entire new industries. And that will lead to American jobs that pay well and can't be outsourced.

"...I can't stress enough the importance of this vote. I know this is going to be a close vote, in part because of the misinformation that's out there that suggests there's somehow a contradiction between investing in clean energy and our economic growth. But my call to those members of Congress who are still on the fence, as well as to the American people, is this: We cannot be afraid of the future, and we can't be prisoners of the past. We've been talking about this issue for decades, and now is the time to finally act."

The Obama Administration announced four core principles that will guide the government’s management of ownership interest in any private firm (including GM):

• Principle 1: The government has no desire to own equity stakes in companies any longer than necessary and will seek to dispose of it ownership interests as soon as practicable.

• Principle 2: In exceptional cases where it is necessary to respond to a company’s request for assistance, the government will reserve the right to set conditions, upfront, to protect taxpayers, promote financial stability and encourage growth.

• Principle 3: The government will not interfere with or exert control over day-to-day company operations.

• Principle 4: As a common shareholder, the government will only vote on core governance issues, including the selection of a company’s board of directors and major corporate events or transactions.

Here’s an excerpt from his remarks:

“But this is just the beginning. There are still too many Americans out of work, and too many who still worry that their job may be next. There are still too many families struggling to pay the bills, and too many businesses struggling to keep their doors open. And that's why we will continue to implement the Recovery Act as quickly and effectively as possible over the next two years. We're just at the start of this Recovery Act. We are going to keep on going through this year and into next year, because we are going to make sure that not only are we putting people back to work, but we're laying the foundation for a better economy. And that's why my administration will continue an unrelenting, day-by-day effort to fight for economic recovery on all fronts.

“Now, I just want to emphasize, even as we clear away some of the wreckage and debris of this extraordinary recession, I've also said that our next task is making sure that this doesn't happen again. We can't return to the same bubble-and-bust economy, borrow-and-spend economy based on maxed-out credit cards and overleveraged banks and financial profits that were only real on paper. We have to lay a new foundation for prosperity -- a foundation constructed on the pillars that will grow our economy and help America compete in the 21st century.”

President Obama has often said that our economic problems weren’t created in 100 days and they won’t be solved in 100 days. But with the Recovery Act in place, we are beginning to see signs of progress.

A few highlights:
– ARRA has saved or created 150,000 jobs.
– Ninety-five percent of working families saw an increase in their paychecks because of the Making Work Pay tax credit.
– Fifty-four million seniors received $250 Recovery Act relief payments.
– The First-Time Homebuyer Tax Credit was expanded to help Americans receive a tax credit of up to $8,000 after the purchase of a new home. Over $3 billion in these tax credits were paid out to qualifying homebuyers.
– Over $25 billion in Medical Assistance (FMAP) funds was made available to states, allowing them to avoid budget cuts to this critical safety net program.
– Over 3,600 transportation construction projects were funded in 52 states and territories.
– An $8 billion investment was made in bringing high-speed rail technology to key corridors across the country.
– A strategic plan was developed to leverage a $4.5 billion dollar investment in Recovery Act funds to finally make a nationwide smart energy grid a reality.

Cesar Chavez's legacy as an educator, environmentalist, and as a civil rights leader who struggled for fair treatment and fair wages for America's workers is important for every American to remember.

Having begun as a farmworker, Cesar Chavez eventually co-founded the United Farm Workers and struggled to provide hundreds of thousands of people with better working conditions and the chance to live a better life. The cause of fair treatment and fair wages for America’s workers lives on today through the work of countless others.

Chavez’s rallying cry, “Sí Se Puede” – “Yes We Can,” was more than a slogan, it was an expression of hope and a rejection of those who said farmworkers could not organize, and could not take on the growers. Through his courage, Cesar Chavez taught us that a single voice could change our country, and that together, we could make America a stronger, more just, and more prosperous nation.

Sí Se Puede. Yes We Can.

"Van Jones has been a strong voice for green jobs and we look forward to having him work with departments and agencies to advance the President’s agenda of creating 21st century jobs that improve energy efficiency and utilize renewable resources. Jones will also help to shape and advance the Administration’s energy and climate initiatives with a specific interest in improvements and opportunities for vulnerable communities," said Nancy Sutley, Chair of the White House Council on Environmental Quality.

Jones is the founder of Green For All, a national organization that promotes an inclusive green economy, strong enough to lift people out of poverty. He is also the co-founder of the Ella Baker Center for Human Rights and Color of Change, two highly innovative social justice organizations. A 1993 Yale Law School graduate, Jones is the author of the 2008 New York Times best-seller, The Green Collar Economy.

Here's some news: even before money from the American Recovery and Reinvestment Act is available to start stimulating the economy, the President’s signature on the act may itself be able to start saving jobs.

Though it could be a matter of weeks or months before funds from the act actually reach businesses and local governments, the Chairman and CEO of Caterpillar said today that if ARRA passes, his company would be able to rehire some of the 20,000 employees it has laid off in the last few weeks.

Creating millions of jobs and investing in our nation's future with a 21st century economy. Fired up and ready to go.

The speech was fantastic so be sure to read the whole text.