Bush to America: Pay up or else

Saying America is in a "serious financial crisis," President George Bush went before the American people Wednesday night to seek approval of a $700 billion Wall Street bailout plan or risk a grave financial disaster.

Speaking in a live prime-time televised broadcast from the White House, the president warned Americans that "our entire economy is in danger."

The president did not accept responsibility for the crisis, but insisted that "the problems we are witnessing today developed over a long period of time."

The president's speech acknowledged that the proposal contradicts what he said were his economic principles. "I'm a strong believer in free enterprise," Bush told Americans. "So my natural instinct is to oppose government intervention. I believe companies that make bad decisions should be allowed to go out of business."

Bush said that under normal circumstances, he would have followed a free market course. "But these are not normal circumstances. The market is not functioning properly. There's been a widespread loss of confidence. And major sectors of America's financial system are at risk of shutting down," he said.

An article in Thursday's New York Times said last night was the first time in Bush's presidency that he delivered a prime-time speech devoted exclusively to the economy. But an editorial in the same paper accused Bush of selling nothing but fear.

"There was no acknowledgement of the shocking failure of government regulation, or that the country cannot afford more tax cuts for the very wealthy and budget-busting wars, or that spending at least $700 billion of taxpayers' money to bail out Wall Street and the banks should be done carefully, transparently and with oversight by Congress and the courts," said the New York Times editorial board.

Sensitive to criticism that the rescue plan amounted to a public bailout of private business, Bush explained his decision in dramatic terms. "With the situation becoming more precarious by the day, I faced a choice: To step in with dramatic government action, or to stand back and allow the irresponsible actions of some to undermine the financial security of all,"

The president urged Congress to take "immediate action" and warned that failure to do so could cause "a financial panic" and "a long and painful recession." Bush said Congressional inaction might lead to bank failures, stock market drops, property value declines, tighter credit for consumers, business closings and severe job losses.

In an effort to show bipartisanship, the president said he appreciated the work of leaders from both parties in both houses of Congress to improve his proposal and heralded what he called "a spirit of cooperation between Democrats and Republicans, and between Congress and this administration."

The president also announced that he had invited the presidential candidates, Senators John McCain and Barack Obama, to meet with him and congressional leaders Thursday at the White House. Both candidates have agreed to attend the meeting.