Bush says government role essential to ease crisis

WASHINGTON: President Bush said Friday that extensive federal intervention in financial markets was both warranted and essential to halt the worst financial crisis in decades and that the risk "of not acting would be far higher."

"America's economy is facing unprecedented challenges. We're responding with unprecedented measures," Bush declared, standing in the White House Rose Garden with Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Christopher Cox, chairman of the Securities and Exchange Commission.

"This is a pivotal moment for America's economy," Bush said. He said that a financial contagion that began with low-quality home mortgages had "spread throughout our financial system."