President Bush tried to convince Congress and the American public to pass the proposed $700bn bailout for the financial sector

President George Bush pitched his proposed $700bn Wall Street bail out to the American Public last night.

In a prime-time television broadcast to the nation, the President said: ‘This is an extraordinary period for America’s economy.’

The Bush administration is trying to convince Congress to pass the massive bailout which could cost American taxpayers up to $2,000 each, according to reports.

He explained that the federal government’s response was designed to reduce the risks posed by toxic assets and supply cash to prevent more banks collapsing.

A believer in free enterprise, the President said under normal circumstances he would want to see companies that made bad decisions go out of business.

‘But these are not normal circumstances. The market is not functioning properly,’ he said.

‘There's been a widespread loss of confidence. And major sectors of America's financial system are at risk of shutting down.’

More banks could fail and the stock market could drop even further, he warned.

Bush said the crisis shows that the regulatory system needs updating. ‘Our 21st century global economy remains regulated largely by outdated 20th century laws.’

But he warned that new efforts to regulate Wall Street should not hamper the economy's ability to grow.

Democratic capitalism is the best system ever devised, he concluded.