President George W. Bush says the US economy depends on decisive action from the government on a financial bailout plan. Without it, he warns the economic damage could be "painful and lasting."

U.S. President George W. Bush makes a statement about the economic bailout package from the White House in Washington Sept. 29, 2008. [Xinhua/Reuters]

The comments come a day after the House of Representatives defeated a 700-billion-dollar emergency rescue plan for the nation's financial system. The vote sent shockwaves through the capital and worldwide markets.

George W. Bush said, "As much as we might wish the situation were different, our country is not facing a choice between government action and the smooth functioning of the free market. We're facing a choice between action and the real prospect of economic hardship for millions of Americans. And for the financial security of every American, Congress must act. My administration will continue to work closely with leaders of both parties on Capitol Hill."

(CCTV October 1, 2008)