IMF chief warns of global financial meltdown

Bush seemed to acknowledge that the lag is feeding anxiety on Wall Street. "These extraordinary efforts are being implemented as quickly and as effectively as possible," Bush said. "The benefits will not be realized overnight."

The White House session with Bush followed a three-hour meeting Friday night of G-7 finance ministers. The president largely echoed their terse statement, saying the nations have together pledged to "do what it takes to resolve this crisis."

Among their promises are preventing the failure of major banks, unfreezing credit markets, bolstering deposit insurance programs, getting the battered mortgage financing system to operate more normally and working with poorer but fast-growing nations that also are feeling the pinch.

To address this last pledge, Paulson scheduled a meeting Saturday evening of the Group of 20 countries — which include the G-7 plus the world's biggest developing countries such as China, Brazil and India — to explain recent actions by the U.S. and other wealthy allies.

French Finance Minister Christine Lagarde said she saw the discussions as a way to help emerging-market countries understand actions by wealthier nations so they can be included in solutions and "if they wish, adopt the same principles."

In a briefing for the IMF's policy-setting board, Paulson said that after the immediate crisis "we must turn our attention to longer-term reforms to modernize our outdated financial regulatory structure."

Addressing the crisis
It was the 22nd day among the past 27 that Bush had spoken about the financial crisis, since evidence first arose that the year-old subprime mortgage mess was evolving into a broader and more calamitous meltdown. After the almost 40-minute meeting and his six-minute statement, the president left the White House for a nearly two-hour mountain bike ride in the nearby Virginia woods.

Bush also addressed the crisis in his weekly radio address, as did Democratic vice presidential candidate Joe Biden in delivering his party's response.

Biden criticized Republican nominee John McCain's proposal to solve the problem in part by having the government buy bad home-loan mortgages at full face value and renegotiate them at a reduced price.

Democratic presidential candidate Barack Obama focused on words of calm.

"I know these are difficult times. I know folks are worried," he was to say at a rally in Philadelphia, according to prepared remarks released by his campaign. "But I also know that now is not the time for fear or panic. Now is the time for resolve and steady leadership. Because I know we can steer ourselves out of this crisis."

More from msnbc.com White House is sued over Obama visitor logs Field Notes: How Tiger Woods betrayed me, too Your body's big enemy? You are sitting on it Bin Laden remains elusive, frustrating U.S. Peru's swiftly diminishing resource: water Send us images of your salutes to troops, friends, kin Giving back for the holiday season? Tell us how

MORE FROM ECONOMY AT A CROSSROADS

Economy at a Crossroads Section Front

Obama outlines bailout for Main Street Bernanke: Too soon to tell if recovery will last theGrio: Black teens' unemployment rate spikes NYT: U.S. forecasts smaller loss from bank bailout Unexpected drop in jobless rate fuels optimism Obama sees some consensus at job summit New jobless claims drop unexpectedly Bleak job scene poses challenge for Obama AIG slashes amount it owes U.S. by $25 billion Blacks fear path to middle class blocked Economy at a Crossroads Section Front   Add Economy at a Crossroads headlines to your news reader: