Suddenly, those bailout buckets looked too small

Afterward, Paulson and his staff fleshed out the plan and walked one block west to the White House for a 3:30 p.m. meeting with President Bush.

They explained that their proposal would almost certainly attract fierce opposition. Bush cut them off.

The country was facing a difficult situation that required urgent action, he told Paulson. Don't even think about the politics, the president said. Just do what you need to do.

The day had already been crazy in Congress. Few were happy with the AIG deal, and a mutiny was brewing among lawmakers angry that Bernanke had unilaterally committed billions to bail out Wall Street speculators. A group of conservative Republicans had held a lengthy news conference to demand that Paulson and Bernanke end the "bailout mania." And Senate Majority Leader Harry Reid (D-Nev.) complained that momentous decisions about the future of the nation's economy were being made in "secret meetings."

House Speaker Nancy Pelosi (D-San Francisco) called Paulson's office for an update. When Paulson returned her call, he said he wanted to brief lawmakers from both parties and both chambers before the day was out.

The meeting was scheduled for 7 p.m. near Pelosi's office. Pelosi , Reid and House Republican Leader John A. Boehner (R-Ohio) were present, along with Paulson, Bernanke and Cox.

We are facing a financial crisis on multiple fronts, Bernanke said. Investors are still losing confidence. There's a run on the money market funds. The last two big investment banks are under siege. The Fed is out of tools. If the problem isn't corrected, the U.S. could enter a deep multiyear recession akin to Sweden or Japan in the early 1990s.

We are headed for the worst financial crisis in the nation's history, Bernanke said. "We're talking about a matter of days."

A pall fell over the room. "When you listened to them describe it, you gulped," said Sen. Charles E. Schumer (D-N.Y.).

Democrats said they wanted some concessions. Firms that received government money should restrict executive salaries and give taxpayers a share of profits. And once the Treasury purchased the mortgage-backed securities, it should ensure that people didn't get thrown out of their homes. Paulson was cool to those ideas.

Sen. Richard C. Shelby of Alabama, senior Republican on the Senate Banking Committee and a key figure in the debate, told Paulson he was asking Congress to sign a "blank check."

Still, Democrats said, if Paulson sent them a plan, they would do their best to pass it.

All that remained was to tell the public. They filed out to face the cameras and reporters, looking sober and uneasy.