WASHINGTON – President Bush said Friday that "anxiety can feed anxiety," causing a market panic, but his administration is working aggressively to provide the tools to restore liquidity and sanity to capital markets.
In remarks from the White House Rose Garden, the president also warned anyone against trying to make a fast buck on the financial crisis and reassured Americans that their money is safe.
"We are concerned that some investors could take advantage of the crisis to illegally manipulate the stock market," Bush said. "Anyone caught engaging in illegal financial activities will be prosecuted."
For the second time in a week, Bush addressed the financial market meltdown and efforts to stem the credit market clog that has caused substantial sell-offs on Wall Street. Bush called the economy "innovative, industrious and resilient."
"The American people can be confident in our economic future. We know what the problems are, we have the tools to fix them and we're working swiftly to do so," he said.
"We are a prosperous nation with immense resources and a wide range of tools at our disposal ... We can solve this crisis and we will," Bush added.
The president spoke ahead of his Saturday meeting in Washington with finance ministers and central bankers from the Group of Seven industrialized countries — the United States, Japan, Britain, Germany, France Italy and Canada. The officials are also meeting with Treasury Secretary Hank Paulson, who is spearheading the administration's financial rescue.
Bush listed a series of activities taken nationally and internationally to provide more liquidity and stem what many are warning could turn into a global depression.
He noted that the U.S. government has injected hundreds of billions of dollars into the credit markets, created programs to let homeowners refinance mortgages through the Federal Housing Administration and expand the cap on individual bank accounts insured by the Federal Deposit Insurance Corporation and National Credit Administration.
"If you have up to $250,000 in one of these insured accounts, every penny of that money is safe," Bush said in what appeared aimed to reassure Americans that the economy is not collapsing.
The president also said the Securities and Exchange Commission has launched "rigorous enforcement actions" to detect fraud and manipulation in the market.
Bush signed a $700 billion bailout bill into law one week ago, but the markets have continued to slide, with the Dow Jones shedding 3,500 points in two weeks. In advance of remarks by the president, the Dow plunged nearly 700 points in early trading before rebounding to just over 100 points down
Bush said the administration is "aggressive" in dispensing the $700 billion, and aims to create "maximum impact as quickly as possible."
Prior to his remarks, Bush spoke with Australian Prime Minister Kevin Rudd as part of ongoing discussions with world leaders on the global financial crisis, said National Security Council spokesman Gordon Johndroe.
Australia's market slid 9 percent on Friday, earning the name "Black Friday" from Australian traders.
The president noted that major Western economies were working together in an attempt to stabilize markets and end the spreading panic.
"Through these efforts, the world is sending an unmistakable signal. We're in this together and we'll come through this together," Bush said.
FOX News' Mike Emanuel and The Associated Press contributed to this report.