WASHINGTON (AFP) — US President George W. Bush on Tuesday warned lawmakers opposed to a mammoth Wall Street bailout that the threat to the US economic "will grow worse each day" that goes by without a rescue package.
One day after the House of Representatives narrowly rejected a plan to pump up to 700 billion dollars into troubled banks, sending markets into freefall, Bush insisted "this is not the end of the legislative process" which he said can be complicated and "contentious."
"The reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act," he said at the White House, warning of "painful and lasting" economic hardship if nothing is done.
"We're at a critical moment for our economy and we need legislation that decisively addresses the troubled assets now clogging the financial system, helps lenders resume the flow of credit to consumers and businesses, and allows the American economy to get moving again," said Bush.
With five weeks before the US elections, the president made a direct appeal to his fellow Republicans, especially conservatives who oppose the plan as ham-handed government intervention in free markets.
"Our country is not facing a choice between government action and the smooth functioning of the free market. We're facing a choice between action and the real prospect of economic hardship for millions of Americans," he warned.
Bush also took aim at objections that the plan to pump up to 700 billion dollars into troubled banks was too expensive, noting that the one-day stock market drop on Monday after the House rejected the project "represented more than a trillion dollars in losses."
And he said the blueprint, under which the US government would buy troubled assets and resell them later, could recoup all of its funds if and when those assets gain value.
"Ultimately, we expect that much, if not all, of the tax dollars we invest will be paid back," said Bush, who vowed to push to get legislation moving again when Congress reconvenes Thursday after the Jewish holiday, Rosh Hashanah.
"For the financial security of every American, Congress must act," he said.
"Our economy is depending on decisive action from the government. The sooner we address the problem, the sooner we can get back on the path of growth and job creation," he said. "I'm confident we'll deliver."
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