Americans must support a massive bail-out of financial markets to ease a “serious financial crisis”, US President George W Bush has said.

The entire economy was in danger, he said in a live TV speech, and failure to act now would cost more later.

He has invited presidential rivals John McCain and Barack Obama to the White House on Thursday to discuss the $700bn (£378bn) rescue package.

The rivals have disagreed on delaying a TV debate over the economic turmoil.

Mr McCain says he is suspending his campaign to help with the crisis, but Mr Obama says voters now need to hear from the candidates more than ever.

The two men will attend a meeting with administration officials and congressional representatives on Thursday morning in the US capital in a bid to broker a mutually acceptable bail-out deal.

‘Distressing scenario’

Mr Bush made his comments in an evening address to the nation.

Major sectors of America’s financial system were at risk of shutting down, he said, and without action a “distressing scenario” would unfold.

George Bush warned that major sections of the financial system were at risk

His administration is calling on Congress to approve a costly bail-out – under which the Treasury would use public money to buy bad debt from troubled financial institutions – as soon as possible.

But lawmakers from both the Democratic and Republican parties have voiced doubts about the plan and the speed at which they are being asked to approve it.

They want assurances that it will benefit ordinary American home-owners as well as Wall Street, and be subject to adequate oversight.

Mr Bush said he understood the frustration of “responsible Americans” who “are reluctant to pay the costs of excesses on Wall Street”.

“But given the situation we’re facing, not passing a bill now will cost these Americans much more later,” he said, calling for a bipartisan commission to oversee the plan.

‘Rise above politics’

Both of the candidates in November’s presidential election have been speaking out on the issue.

“Given the situation we’re facing, not passing a bill now will cost these Americans much more later” US President George W Bush

Dire warnings from US leader

Mr McCain said he was suspending his campaign to return to Washington to help agree a deal, saying he feared the rescue package would not pass “as it currently stands”.

He also called for his first presidential debate with Mr Obama on Friday to be suspended – something Mr Obama did not support.

Americans needed to “hear from the person who in approximately 40 days will be responsible for dealing with this mess”, Mr Obama told journalists.

The two men did, however, call for a bipartisan approach on the bail-out.

“This is a time to rise above politics for the good of the country,” they said in a joint statement late on Wednesday.

News reported by The BBC