Please turn on JavaScript. Media requires JavaScript to play. US President George W Bush has warned the US economy is at a "critical moment", and vowed to get his Wall Street rescue plan through Congress. He said the consequences would be "painful and lasting" if the $700bn (£380bn) deal rejected by the US House of Representatives was not passed. He offered reassurances to citizens of the US and wider world that the current political deadlock would be resolved. The US Senate has announced it will vote on the plan on Wednesday evening. The Dow Jones index closed up 4.7% on Tuesday, recouping some losses from Monday's rout, after the markets reacted favourably to the president's statement. European stocks bounced up and down, while most Asian markets finished the day down. The European Union earlier urged Washington to act and solve the credit crisis, amid fears America was lurching towards a financial crisis unmatched since the 1930s Great Depression. 'Not the end' Mr Bush said at the White House: "We are in an urgent situation and the consequences will grow worse each day if we do not act." The economy was depending on "decisive action on the part of our government", he added. We're facing a choice between action and the real prospect of economic hardship for millions of Americans
President Bush
Where votes went in the bill Q&A;: US $700bn rescue plan World reacts to US bail-out rejection He said he wanted to "assure our citizens and citizens around the world that this is not the end of the legislative process". "Our country is not facing a choice between government action and the smooth functioning of the free market," he said. "We're facing a choice between action and the real prospect of economic hardship for millions of Americans," he warned. Republican presidential contender John McCain said he was disappointed at the "lack of resolve" shown by both parties in the US House of Representatives. "The whole spectrum of Main Street America's economy is going to be jeopardised unless we pass this legislation. And we didn't do a good enough job selling it," Mr McCain told US television. Markets in New York and around the world are having a rough ride He said he had called Mr Bush on Tuesday, as did his Democratic rival, Barack Obama. The White House described Mr Bush's conversations with the two presidential candidates as "very constructive". Mr Obama told a rally of voters in Reno, Nevada: "We must act and act now. We can't have another day like yesterday." The BBC's Jamie Coomarasamy in Washington says both the president and the two men who hope to succeed him in January are under pressure to show leadership amid the partisan bickering which has followed the bill's failure. Blame claims The rivals back the rescue plan, although each has accused the other of contributing towards its collapse. Republicans and Democrats in Congress are blaming each other over the failed bill, which was rejected by 228 to 205 votes in the House of Representatives on Monday. Some 133 Republicans and 95 Democrats refused to back the rescue package in a tense vote on the House floor. On Tuesday, the two leading Democrats in Congress, Senator Harry Reid and House of Representatives Speaker Nancy Pelosi, wrote to President Bush saying they expected a bipartisan rescue plan to soon be approved. "Working together, we are confident we will pass a responsible bill in the very near future," they said. HAVE YOUR SAY I know we need a strong financial sector, but where is the talk of structural change that's going to prevent recurrence? Neil, California, US The House is not due to meet again until Thursday as many members have gone home for a Jewish holiday. For the second time in as many days on Tuesday, Western European governments stepped in to prop up an ailing financial institution. The French and Belgian governments rescued the Franco-Belgian financial services group, Dexia, with a package totalling more than $9bn (£5bn).
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George Bush making the statement at 12:45  today. 
George W. Bush vowed to get the  700 billion economic rescue plan through congress in a statement to the media made today.

"Yesterday, the House of Representatives voted on a financial rescue plan that had been negotiated by Congressional leaders of both parties and my administration," Bush reminded the audience. "Unfortunately, the measure was defeated by a narrow margin. I'm disappointed by the outcome, but I assure our citizens and citizens around the world that this is not the end of the legislative process."

"Producing legislation is complicated, and it can be contentious. It matters little what a path a bill takes to become law," he continued. "We're at a critical moment for our economy, and we need legislation that decisively address 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."
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"I recognize this is a difficult vote for members of Congress. Many of them don't like the fact that our economy has reached this point, and I understand that. But the reality is that we are in an urgent situation, and the consequences will grow worse each day if we do not act. The dramatic drop in the stock market that we saw yesterday will have a direct impact on the retirement accounts, pension funds, and personal savings of millions of our citizens. And if our nation continues on this course, the economic damage will be painful and lasting."
World and US markets today are up after severe declines yesterday. Most have recovered 30% of their previous losses, meaning that the potential government expenditure was similar to the market losses.

Bush then said that he knows "many Americans are especially worried about the cost of the legislation." He then attempted to justify the cost. "The bill the House considered yesterday commits up to 700 billion taxpayer dollars to purchase troubled assets from banks and other financial institutions. That, no question, is a large amount of money. We're also dealing with a large problem. But to put that in perspective, the drop in the stock market yesterday represented more than a trillion dollars in losses."

If passed, the bailout plan would have allowed for the United States government to purchase devalued mortgage backed securities, resulting from the subprime mortgage crisis, from troubled financial institutions. The US Treasury Secretary Henry Paulson said the plan could cost up to $700 billion.