Pressing urgently for a massive financial bailout, President George W. Bush said the nation faces a "long and painful recession" if Congress fails to act. He said, "our entire economy is in danger."

Video: Bush Says Economy In Danger | Interactive | Save Money

Speaking in dire terms, Bush pushed for a $700 billion government rescue plan during a prime-time address to the nation. His move 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.

Bush 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.

Presidential candidates Sens. John McCain and Barack Obama issued a joint statement moments before Bush's address, saying now is the time for both political parties to come together in the spirit of cooperation for the sake of the American people.

They said the $700 billion plan the administration has proposed to bail out the financial industry is flawed, but that the effort to protect the U.S. economy must not fail.

Bush has invited both candidates to a meeting at the White House on Thursday with congressional leaders to discuss solutions to the economic crisis.

Meanwhile, Democratic officials said leaders are asking the Bush administration to dramatically cut the size of the bailout package, then come back to Congress later if they need more.

Under the plan, which is still emerging, Congress would approve a fraction of what Bush is asking for -- perhaps $150 billion or $200 billion -- to allow the government to begin rescuing tottering financial companies.

House Speaker Nancy Pelosi has privately suggested the idea to Treasury Secretary Henry Paulson -- that's according to officials who spoke on condition of anonymity because the negotiations are private.

Sen. Chuck Schumer pressed Paulson on the idea Tuesday and was told it would be a "grave mistake."

GOP Official: Paulson Agrees To Pay Limit

Republican officials said Paulson has agreed to accept limits on pay packages for executives whose companies benefit from the proposed $700 billion bailout of the financial industry.

Critics of the proposed bailout in both political parties in Congress had been demanding the change.

Bernanke, Paulson Return To Hill

Paulson and Federal Reserve Chairman Ben Bernanke made their case for the bailout plan Wednesday in a closed-door meeting with House Republicans. Those who were there said lawmakers voiced new doubts, and said their constituents are overwhelmingly opposed.

House GOP leader John Boehner said Americans are "furious" that they're being asked to put up $700 billion. But he added that Congress "has a responsibility to act," and that he hopes a bipartisan deal can be reached.

A Republican said only four of his GOP colleagues raised their hands during the meeting when asked how many of them supported the plan. Tom Davis of Virginia said it's a "terrible plan," but that he hasn't "heard anything better."

Republicans and Democrats both said Bush has lost credibility on Capitol Hill, particularly in cases in which he argues there will be dire consequences if Congress doesn't act.

Americans Mixed On Bailout

A poll suggests a lot of Americans aren't very keen on the Bush administration's bailout plan for Wall Street, but most people surveyed agree something has to be done.

According to a Pew Research Center for the People and the Press survey, nearly two-thirds of people surveyed said they think the government bailout plan is the right thing to do.

Jeff Mays, of Westerville, Ohio, said he can agree with it "from a practical standpoint," but he said ideologically, he doesn't like the government "messing in the markets."

About 30 percent of those polled said the bailout is the wrong thing to do.

Margaret Tate, a 52-year-old copywriter in Atlanta, said her resentment is toward "the fat cats on Wall Street" who she said "are probably going to ride off in the sunset with millions in their saddlebags."

Wall Street Jitters

The financial markets remained nervous Wednesday as Washington continues to work out details of a massive financial rescue package. The waiting is wearing on the credit markets and demand for short-term government Treasuries increased as investors sought safe places to keep cash.

After two days of steep declines, the Dow fell 29 points to 10,825.

The S&P 500 dropped 2 points to 1,185.

The Nasdaq composite rose 2 points to 2,155.

Declining issues held a 3-to-2 lead over advancers.

Volume on the NYSE exchange came to 4.6 billion shares. Nasdaq stock market volume was 1.8 billion shares.

Crude oil prices fell 88 cents to $105.73 on the New York Mercantile Exchange.