PRESIDENT George Bush has told Americans that a $700 billion rescue plan for troubled financial institutions is essential to prevent the country’s economic system from seizing up.
“Our entire economy is in danger,” Mr Bush said in his first prime-time television address for more than a year.
Presidential candidates Barack Obama and John McCain have agreed to meet Mr Bush today to discuss the rescue plan, which has met strong resistance in Congress.
Mr McCain suspended his campaign yesterday and called for tomorrow’s presidential debate in Mississippi to be postponed until Congress agrees on measures to tackle the financial crisis.
Mr Obama wants the debate to go ahead, although he issued a joint statement with Mr McCain last night promising to work towards an agreement on the financial rescue plan.
“The American people are facing a moment of economic crisis. No matter how this began, we all have a responsibility to work through it and restore confidence in our economy. The jobs, savings, and prosperity of the American people are at stake,” the candidates said.
“This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe. Now is our chance to come together to prove that Washington is once again capable of leading this country.”
Mr Bush blamed the crisis on "easy credit" in the housing markets and urged Congress to act soon because widespread loss of confidence in the financial sector could affect all levels of the domestic economy and cause the US to experience a long and painful recession."
"Given the situation we are facing, not passing a bill now would cost these Americans much more later," he said.
“More businesses would close their doors, and millions of Americans could lose their jobs. Even if you have good credit history, it would be more difficult for you to get the loans you need to buy a car or send your children to college.”
The administration has struggled to secure support for the rescue plan in Congress, particularly among conservative Republicans. Democrats have warned that they will only support the measure if it has bipartisan support.
