Bush talks about Unity

Bush: No quick fixes to financial crisis

• Story Highlights
• U.S. President Bush meeting G-7 finance leaders
  
• Finance chiefs agreed "decisive action" to combat financial crisis
  
• Five-point plan issued to tackle the situation after disastrous week
  

WASHINGTON (CNN) -- U.S. President Bush Saturday tried again to ease global economic fears as he met with world financial leaders to coordinate ways to stabilize markets after a disastrous week saw trillions wiped off the value of shares.

The G-7 ministers are trying to thrash out ways to calm the markets.

In a statement after the talks, Bush said he and representatives from the Group of Seven rich industrialized agreed that the scope of the crisis called for a global response, warning against individual nations taking action that could hurt others.

"We recognize that the turmoil in the financial markets is affecting all our citizens," Bush said, standing in front finance ministers from the Group of Seven rich industrialized nations.

"All of us recognize this is a serious global crisis that requires a serious global response for the good of our people."

Bush, who a day earlier had appealed for calm amid wildly fluctuating markets, outlined efforts his country was taking to strengthen its financial system, including a plan to inject much-needed capital into banks.

"We must ensure the actions of one country do not contradict or undermine the actions of another. In an interconnected world, no nation will gain by driving down the fortunes of another," he added.

But he cautioned that it would take to see results. "The benefits will not be realized overnight," he said.

On Friday the finance ministers and central bankers from the U.S., Germany, Japan, France, UK, Italy and Canada announced a five-point plan to counter financial turmoil after the first round of talks in Washington

The plan of action The includes:

Take decisive action and use all available tools to prevent "important" institutions from failing.

Take steps to unfreeze credit and money markets and ensure that banks and other institutions have broad access to liquidity and funding.

Ensure that banks and other major financial intermediaries can raise enough capital from public and private sources to re-establish confidence and kick start lending to individuals and businesses.

Ensure that each country's deposit insurance programs are strong and consistent to assure depositors their money is safe.

Take action to restart the secondary markets for mortgages and other securitized assets

Bush on Friday had tried to reassure markets Friday that a bailout for Wall Street, which has been hardest hit by the fall-out from the collapse of the U.S. sub-prime mortgage market would yield results

He said his government's "wide range of tools" included the $700 billion financial bailout, which he called "big enough to work."

This plan will authorize the Treasury to buy bad mortgage-related investments from finance companies, unfreezing the credit markets by freeing up banks and finance firms to lend once again.

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The Dow Jones dropped 700 points at one point Friday, bouncing back into positive territory briefly only to be about 300 points down, or about 3.6 percent, by noon.

It again recovered to close about 100 points down. The Nasdaq and S&P also closed less than one percent down.

London's FTSE, the CAC in Paris and the XETRA DAX in Frankfurt, Germany all closed down between six and eight percent.

Meanwhile U.S. Treasury Secretary Henry Paulson said the U.S. Government was working on a plan to buy stock in financial institution by using part of the $700 billion.

The move follows a similar $84 billion rescue plan unveiled by the UK government this week aimed at keep the country's beleaguered banking system afloat.

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I CANNOT BELIEVE AFTER ALL WHAT HE HAD DONE HE TALK ABOUT UNITY FULISH.

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