Bush Issues Warning to Americans, Entire Economy in Danger

The televised address and the extraordinary offer to bring together Barack Obama and John McCain weeks before the election underscored a sense of urgency on the part of the administration that Congress must act to avert a far-reaching economic collapse.

It was the first time in Bush8217;s presidency that he delivered a prime-time address devoted to economy, and it came at a time when deep public unease about shaky financial markets has been coupled with scepticism and anger at the Government bailout that would be the most expensive in American history. The address capped a chaotic day in Washington, on the presidential campaign trail and on Wall Street.

On Capitol Hill, negotiations between Treasury Secretary Henry M Paulson Jr and Democratic and Republican leaders on the bailout plan were complicated by resistance from lawmakers hearing complaints from constituents. For the first time, the administration signaled that it would be willing to make major concessions to secure congressional approval, including limits on pay of executives whose firms seek Government assistance and plan to give taxpayers an equity stake in some of the firms so that the Government can profit if the companies prosper in future.

Bush issued his invitation to Obama and McCain, after developments on the campaign trail threw a kink into the congressional talks. McCain had announced that he would suspend his campaign, put off Friday night8217;s presidential debate to forge the bipartisan consensus that, he said, the administration could not reach on its own. The White House said the meeting would occur Thursday afternoon.

On Wall Street, financial markets continued to struggle. The cost of borrowing for banks, businesses and consumers shot up and investors rushed to safe havens like Treasury bills 8212; a reminder that credit markets, which had recovered somewhat after Paulson announced the outlines of the bailout plan last week, remain under severe stress, with many investors still skittish. Congressional leaders and Treasury officials said they expected to work through the night on Wednesday as talks intensified into detailed negotiations.

A Democratic leadership aide said lawmakers from both the House and Senate planned to meet on Thursday to hammer out 8220;a final bipartisan bill to be passed and signed into law.8221; The aide said: 8220;Not too many unresolved issues remain.8221; Bush signalled his willingness to address lawmakers8217; concerns, including fears that taxpayer dollars will be used to compensate Wall Street executives and the plan would put too much authority in the hands of the Treasury secretary.

The speech came after the White House opened an effort to portray the bailout as crucial to stabilize Wall Street and protect livelihood of Americans. Careful thought was also given to the timing; aides to Bush said they did not want to appear to have the president forcing a solution on Congress.

hard-Up times

The joint statement from Obama and McCain reads:

8220;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.

Now is a time to come together8230; in a spirit of cooperation for the sake of the American people. The plan that has been submitted to Congress by the Bush Administration is flawed, but the effort to protect the American economy must not fail8230; 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.8221;