Speaking to the American people, President Bush today detailed why an economic bailout plan is needed and why his administration’s rescue plan for the economy is “necessary.”

CNN reports:

President Bush, saying “our entire economy is in danger,” urged Congress to approve his administration’s $700 billion bailout proposal.

Failure to act quickly on the bailout plan could result in a “long and painful recession,” Bush warned.

“We’re in the midst of a serious financial crisis, and the federal government is responding with decisive actions,” Bush said in a televised address Wednesday night from the White House.

Bush pointed out that the collapse of several major lenders was rooted in the subprime mortgage market that thrived over the past decade.

He said passage of the $700 billion bailout proposal was needed to restore confidence in the market.

“I’m a strong believer in free enterprise, so my natural instinct is to oppose government intervention,” he said. But “these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence.

“Without immediate action by Congress, America can slip into a major panic.”

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