Top News #4

"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 expressed that a $700 billion bailout proposal was needed to restore confidence in the market. He pointed out that the collapse of several major lenders was rooted in the subprime mortgage market that thrived over the past decade.

Bush is known as a strong believer in free enterprise. However he explained, "...my natural instinct is to oppose government intervention,". But "these are not normal circumstances. The market is not functioning properly. There has been a widespread loss of confidence." Bush warns, "Without immediate action by Congress, America can slip into a major panic. If Congress fails to approve the rescue plan, the nation could face a "long and painful recession," . Bush promises
"The plan is big enough to solve a serious problem," .

The proposal calls for the government to buy from firms up to $700 billion in troubled assets whose values declined as the housing market imploded. The goal is to stabilize the companies and prompt them to lend again.

Federal Reserve chief Ben Bernanke warned Wednesday that the Wall Street crisis is the worst the nation has faced since the end of World War II. Bernanke urged Congress to take action on a proposed bailout plan.

The senior administration official said the president has been contemplating a prime-time speech for several weeks but finally decided to deliver it tonight because he believes that the situation has reached crisis stage.

I feel this story is top news worthy because the economy crisis impacts the entire country, as well as the rest of the world. President Bush gives prominence to the story, as well as currency. The story also provides conflict in what the country should do about the current problem.