Economy In Peril - Government Still Afraid To Use D-Word

President warns of 'painful recession' if reprieve isn't approved; he invites Obama, McCain to help finalize plan.

President Bush summoned Barack Obama, John McCain and legislative leaders to an extraordinary White House summit, warning Americans and Congress on Wednesday night that failing to act on a $700 billion financial industry bailout could lead to "a long and painful recession."

Earlier, Bush bowed to Democratic demands to limit the pay of executives whose tottering companies would be rescued.

Democrats and Republicans were nearing agreement on the rescue legislation, the most sweeping government intervention in the market since the Great Depression, and set a meeting early today to draft a bipartisan bill.

Bush acknowledged in a prime time television address Wednesday night that the bailout would be a "tough vote" for lawmakers.

The president's dire warning came not long after he invited presidential candidates Obama and McCain as well as key congressional leaders to a White House meeting today to work on a compromise.

The administration appeared to be softening its resistance to Democrats' demand that the eye-popping cost be phased in rather than dispensed all at once.

But Bush strongly urged Congress to act quickly to pass the plan, warning Americans in his 12-minute speech that failing to act fast risked dire economic consequences such as disappearing retirement savings, rising foreclosures, lost jobs and closed businesses.

"Without immediate action by Congress, America could slip into a financial panic, and a distressing scenario would unfold," Bush said as he worked to resurrect the unpopular bailout package.

With the administration's original proposal considered dead in Congress, House leaders issued an upbeat statement late Wednesday saying there was progress toward revised legislation that could pass.

In their statement, Pelosi and Boehner said, "We agree that key changes should be made to the administration's initial proposal. It must include basic good-government principles, including rigorous and independent oversight, strong executive compensation standards and protections for taxpayers."

Earlier, Paulson agreed to demands from critics in both parties to limit the pay packages of Wall Street executives whose companies would benefit from the proposed bailout.

"The American people are angry about executive compensation and rightfully so," Paulson told the House Financial Services Committee. "We must find a way to address this in the legislation without undermining the effectiveness of the program."

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Seriously the President must be the last guy on Earth to know how bad the economy was.

Talk about out of touch.

I just love how everyone dances around the word Depression and use other euphemisms like "a long and painful recession."

Puleeze.

With all this the Republican party STILL wanted to ensure corporate executives got their cut? After what they have done to this country?

Who owns who?

Bush urging congress to act quickly?

Get on board the short bus George, we left for shanty town a long time ago but you should remember it.

It was during your watch.



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