U.S. & World News

WASHINGTON (CBS News) ― Speaking in dire terms, President Bush on Wednesday warned Americans and lawmakers reluctant to pass a historic financial rescue plan that failing to act fast risks wiping out retirement savings, rising foreclosures, lost jobs, closed business and "a long and painful recession."

He spoke just after inviting Democrat Sen. Barack Obama and Republican Sen. John McCain, one of whom will inherit the mess in four months, and key congressional leaders to an extraordinary White House meeting Thursday to hammer out a compromise.

"Without immediate action by Congress, American could slip into a financial panic and a distressing scenario would unfold," Bush said in a prime-time address from the White House East Room that he hoped would help rescue his tough-sell bailout package.

The president explicitly endorsed several of the changes that have been demanded in recent days from the right and left. But he warned that he would draw the line at regulations he determined would hamper economic growth.

"It should be enacted as soon as possible," the president said, arguing that "our entire economy is in danger."

President Bush's move Wednesday was aimed at explaining the package to the American public, but also to keep pressure on frustrated and angry lawmakers to work out a bipartisan deal fast.

The president said the goal is to help the government buy up troubled assets so that credit can start flowing again and the economy will rebound. He said the rescue is aimed at helping the country, not individual companies.

Bush last gave a prime-time address to the nation 377 days ago, on Iraq. This one could be the last of his presidency.

The president called Obama around 7:30 pm on Wednesday, shortly before the address, reports CBS News White House correspondent Mark Knoller.

"A few moments ago, President Bush called Senator Obama and asked him to attend a meeting in Washington tomorrow, which he agreed to do," Obama-Biden spokesman Bill Burton said in a statement. "Senator Obama has been working all week with leaders in Congress, Secretary Paulson, and Chairman Bernanke to improve this proposal, and he has said that he will continue to work in a bipartisan spirit and do whatever is necessary to come up with a final solution."

The meltdown among several financial institutions and intense negotiations with Congress over the administration's requested $700 billion bailout package led the president to return to Washington early from a three-day whirl of international meetings in New York. He also canceled plans to spend the afternoon in Florida raising campaign cash for Republicans.

The package is meeting with deep skepticism on Capitol Hill, especially from conservatives in Bush's own party revolting at the high price tag and unprecedented private-sector intervention. Though there is general agreement that something must be done, the administration has made big concessions almost daily based on demands from the right and left. The timing and even the size of the package remained in doubt.

White House and administration officials have warned repeatedly of what White House press secretary Dana Perino on Wednesday called the risk of "financial calamity."

But that has not closed the deal, which for many recalls previous warnings of grave threats from President Bush - such as before the Iraq war - that did not materialize. So Bush's goal with his speech was to frame the debate in layman's terms to show the depths of the crisis, explain how it affects the people's daily lives and inspire the public to demand action from Washington. He was not expected to dwell much on the question of blame.

"The cold on Wall Street could infect Main Street," Perino said. People "are concerned about their homes, their education funds, their retirement accounts, their savings."

The White House has struggled to determine how to deploy Bush.

As the problem mushroomed over the weekend of Sept. 13, the president generally stayed out of the limelight, letting Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke take the lead with reporters, lawmakers and the public. Bush remained silent for days.

Since Thursday, however, the president has talked about the crisis almost daily, although usually briefly, and yet he still has had trouble breaking into the debate. News coverage has barely mentioned Bush's comments.

The decision to pull out perhaps a president's largest available weapon - the ability to demand a presence on evening television screens nationwide, from a setting with the ultimate bully-pulpit power - is one sign that the rescue package still faces daunting hurdles. But there was no evidence that Bush was calling or meeting with individual lawmakers to get the job done. Intensive, personal wheeling-and-dealing has never been Bush's style as president, unlike some predecessors.

TV executives can't be thrilled to give up airtime. This is the much-promoted week when the networks unveil their first episodes of the fall season for high-profile shows.

The president was potentially getting a boost from the two men vying to succeed him in the Oval Office. Perino welcomed news the candidates were working on a joint statement outlining shared principles for a rescue.

"Bipartisan support from Sens. McCain and Obama would be helpful in driving to a conclusion," she said.

That statement came out shortly before President Bush's address.

"The American people are facing a moment of economic crisis," the candidates said. "No matter how this began, we all have a responsibility to work through it and restore confidence in our economy. The jobs, savings, and prosperity of the American people are at stake."

They continued: "Now is a time to come together - Democrats and Republicans - in a spirit of cooperation for the sake of the American people. The plan that has been submitted to Congress by the Bush Administration is flawed, but the effort to protect the American economy must not fail.

"This is a time to rise above politics for the good of the country. We cannot risk an economic catastrophe. Now is our chance to come together to prove that Washington is once again capable of leading this country."

With so many crises hitting the United States at once, the presidential race has taken a back seat and so has Bush's involvement in politics. Wednesday's Florida trip was the third time in a week that he has scrapped his attendance at out-of-town fundraisers, either because of the market turmoil or Hurricane Ike.

The economic crisis also is almost certain to overshadow the rest of Bush's four months left in office and could hugely impact his legacy. It has been assumed that the long-term view of Bush's presidency was to be shaped largely by Iraq, Hurricane Katrina and the Sept. 11, 2001, attacks. Now, the dire economic problems and the aftermath of the government's attempted solution will certainly be added to that list.

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)