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President Implores Congress to Act to Rescue Markets

UPDATE:

WASHINGTON (AP) - President Bush says the economic damage to the nation will be "painful and lasting" if Congress fails to pass a $700 billion bailout bill.

Bush said Tuesday that "Congress must act" and said the economy is depending on "decisive action on the part of our government." He spoke a day after the House voted narrowly to defeat the massive relief measure that his administration and leading members of Congress had agreed was necessary.

Bush said he wanted to "assure our citizens and citizens around the world that this is not the end of the legislative process."

WASHINGTON (AP) - In a stunning vote that's sent shockwaves throughout markets worldwide, the House has defeated a 700-billion-dollar emergency rescue for the nation's financial system.

Most Democrats voted for it, but most Republicans voted against it. Lawmakers who voted no ignored urgent warnings from President Bush and congressional leaders of both parties that the economy could nosedive without the plan.

Responding, the Dow Jones industrials plunged 777 points, the most ever for a single day.

Democratic and Republican leaders alike are pledging to try again. And President Bush is huddling with his economic advisers about a next step.

The House will reconvene Thursday instead of adjourning for the year as planned.

Today's 777-point decline surpasses the 684-point drop on the first day of trading after the 9/11 terror attacks.

UPDATE:

WASHINGTON (AP) - Treasury Secretary Henry Paulson says the administration will continue to work to win approval in Congress for a rescue package for the financial system.

Paulson, speaking with reporters after a White House meeting, said that the administration was intent on getting legislation approved after the House rejected a $700 billion bailout plan on Monday, sending stock prices plummeting on Wall Street.

Paulson said that it was important to get approval of a measure as soon as possible and the administration was committed to working with congressional leaders to get that done.

WASHINGTON (AP) - Members of the House have been facing a lobbying effort from the White House and from their own leadership today, in advance of a vote on the Wall Street bailout legislation.

A White House spokesman says, "We're going to keep working with them right up until the vote." He says President Bush, Vice President Cheney and others are contacting House members in an effort to rally support. Bush himself has a call list with a "couple dozen members."

The bailout plan is an unpopular one, but it's one that House leaders say is necessary. House Financial Services Committee chairman Barney Frank acknowledges the "tough vote" that members will have to cast, adding that it's hard for them to get credit for avoiding something that hasn't happened.

Republican Paul Ryan of Wisconsin warns that "the worst is yet to come" without the bailout package, and adds, "If we fail to do the right thing, Heaven help us."

He adds that lawmakers are worried about being voted out of office if they vote for the plan. Ryan says the general attitude among his colleagues is, "I want this thing to pass, but I want you to vote for it, not me."

WASHINGTON (AP) - A White House spokesman says President Bush is very disappointed in Monday's House vote rejecting the administration's rescue plan for the nation's financial industry.

"There's no question that the country is facing a difficult crisis that needs to be addressed," said spokesman Tony Fratto. He said the president will be meeting with members of his team later in the day "to determine next steps."

Bush is "very disappointed" with the vote, Fratto said.