"The answers to our problems don't lie beyond our reach. They exist in our laboratories and universities, in our fields and our factories, in the imaginations of our entrepreneurs and the pride of the hardest-working people on Earth," said Obama.
"What is required now is for this country to pull together, confront boldly the challenges we face and take responsibility for our future once more," the president noted.
Swift actions
In the address, Obama noted his administration is moving swiftly and aggressively to break this destructive cycle of the credit market, restore confidence, and re-start lending.
"We are creating a new lending fund that represents the largest effort ever to help provide auto loans, college loans, and small business loans to the consumers and entrepreneurs who keep this economy running," said Obama.
"Second, we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages," he said.
Obama has already committed 275 billion dollars to strengthening the housing market. Of that, 75 billions are aimed at preventing foreclosures.
Third, the US government will "act with the full force" to ensure that the major banks that Americans depend on have enough confidence and enough money to lend even in more difficult times, said the new president.
"I will not spend a single penny for the purpose of rewarding a single Wall Street executive, but I will do whatever it takes to help the small business that can't pay its workers or the family that has saved and still can't get a mortgage," said Obama.
He acknowledged that reviving the stricken US economy will cost more than the trillions of dollars already committed.
"While the cost of action will be great, I can assure you that the cost of inaction will be far greater, for it could result in an economy that sputters along for not months or years, but perhaps a decade," he said.
He called on Congress to move quickly on legislation to overhaul outdated regulations on the nation's financial markets.
"I ask this Congress to join me in doing whatever proves necessary," Obama said. "Because we cannot consign our nation to an open-ended recession."