President George W. Bush addressed the nation Wednesday night from Washington, D.C. and called on both political parties to support his $700 billion Wall Street bailout plan as the proper solution for an ailing economy.

In his 15-minute speech, the president acknowledged that there is widespread concern for the economy and loss of confidence in investing, and said the government could not afford to avoid intervening.

"I believe companies that make bad decisions should be allowed to go out of business. Under normal circumstances, I would have followed this course," said Bush. "But these are not normal circumstances. The market is not functioning properly. There's been a widespread loss of confidence and major sectors of America's financial system are at risk of shutting down."

He also said that the proposal will ensure that executives from failed financial institutions will not profit from the crisis. Bush said he does not want to burden taxpayers with the cost of the bailout, but that it is a necessary step.

"I also understand the frustration of responsible Americans who pay their mortgages on time, file their tax returns every April 15th and are reluctant to pay the cost of excesses on Wall Street," said Bush. "But given the situation we are facing, not passing a bill now would cost these Americans much more later."

Bush carefully explained his reasoning behind the origins of the economic crisis. He then said that the U.S. Treasury should buy mortgage-backed securities and sell them to earn back at least some of the bailout's money.

Failure to enact such a plan, according to Bush, could lead to a "long and painful recession" marked with more bank closings and the widespread inability to take out loans.

Critics, however, said that the bailout may not necessarily create a better situation for lending.

“I am skeptical, continue to be skeptical, and I think that a lot of listeners will also continue to be skeptical about this claim that sending $700 billion to Wall Street is going to mean more jobs and [that it’s] easier for people to get loans,” said Money magazine senior writer Stephen Gandel.

"I think maybe he did the best he could, which is to try to portray this as a bipartisan effort, and portray the plan in the best possible light," said Columbia University Professor Andrew Gelman. "But it's really going to be the deeds, not the words that make the difference at this point."

Bush ended his speech with an invitation to presidential candidates Barack Obama and John McCain to come to the White House Thursday to work on a "bipartisan bill."

The president also thanked Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke and Securities and Exchange Commission Chairman Christopher Cox for their work in promoting the bailout.

Paulson and Bernanke have had a hard time pushing the plan through Congress, where some fear their constituents would see it as a case of Main Street bailing out Wall Street.

"I would hope that President Bush would explain who should pay for his plan, and how he will protect taxpayers involuntary investments," said Senate Majority Leader Harry Reid.

Bush cut short his trip to New York, during which he attended the United Nations Assembly, to return to the nation's capital for his televised speech.

The last time Bush gave a formal address was more than a year ago on the troop reduction in Iraq.

On Capitol Hill, Bernanke also urged Congress to pass the economic bailout plan before more pressure is placed on the fragile economy.

During his second-straight day of testimony before a congressional committee, Bernanke said Americans are finding it harder and harder to find credit for mortgages. He also said economic growth depends on stabilizing financial institutions.

"Despite the efforts of the Federal Reserve, the Treasury, and other agencies, global financial markets remain under extraordinary stress," he said. "Action by the Congress is urgently required to stabilize the situation and avert what otherwise could be very serious consequences for our financial markets and economy."

Congressional leaders have expressed doubts about the plan's lack of specifics and oversight.

Both Democrats and Republicans are pushing for revisions, including a proposal that would limit pay packages for executives whose companies get a piece of the bailout.

Stocks opened higher Wednesday morning, after Tuesday's news that billionaire investor Warren Buffett is looking to invest at least $5 billion into troubled financial company Goldman Sachs.

On Wednesday, the company announced it raised $5 billion in a public offering. This is part of its effort to raise capital to transfer itself into a traditional bank.

The markets fell sharply at Tuesday's close, stressing out many working downtown.

"I'm depressed," said one New Yorker. "I'm an attorney and I don't know what to say. I hope the bailout works. I think it's a good thing."

Meanwhile, the FBI is looking at potential fraud by mortgage giants Fannie Mae and Freddie Mac, Lehman Brothers, and insurer American International Group. The inquiries, still said to be in the preliminary stages, will focus on the institutions and those who ran them.