The legislation voted down in the House Monday would have allowed the government to buy bad mortgages and other troubled assets from struggling financial institutions.

Such action, many believe, would relieve the companies targeted, ease the credit market and boost the national economy.

The good news is that congressional leaders are not giving up even though the bailout plan was defeated by 23 votes Monday. They are working toward a solution.

One idea is to raise the federal deposit insurance limit from $100,000 to $250,000, further assuring Americans that the legislation would help the economy. That would provide more assistance for small businesses and perhaps encourage bank customers worried about losing their savings.

Changes in "mark to market" accounting rules are being pondered as well. Under such rules, banks are compelled to adjust the value of their assets according to current market prices even if they intend to hold the assets for years. This forced banks to report large losses on mortgage-backed securities, which new regulations might avoid.

The White House has indicated an openness to new ideas to help the proposal. The criteria, said spokesman Tony Fratto, is "if it will help the economy, (if) it will help deal with this problem in our financial markets and the strength of our financial institutions, and if it will help in being able to pass legislation."

For the ninth straight day, President Bush has spoken publicly about the financial crisis, though his influence is diminished. "I assure our citizens — and citizens around the world — that this is not the end of the legislative process," he said Tuesday in a short message.

The president said that the $700 billion proposed bailout was enormous, but not as much as the $1 trillion lost as a result of Monday's stock-market plunge.

Explaining the rescue package, he said: "Because the government would be purchasing troubled assets and selling them once the market recovers, it is likely that many of the assets would go up in value over time. Ultimately, we expect that much — if not all — of the tax dollars we invest will be paid back."

By comparison, Mr. Bush noted: "The dramatic drop in the stock market that we saw yesterday will have a direct impact on retirement accounts, pension funds and personal savings of millions of our citizens. And if our nation continues on this course, the economic damage will be painful and lasting."

"For the financial security of every American, Congress must act," the president stressed.

Sen. Barack Obama issued a statement Tuesday that increasing federal deposit insurance would help small businesses, make the banking system more secure and boost public confidence in the system. Sen. John McCain said that political leaders must give "frightened" Americans a solution for today and a long-term strategy.

The stock market plunge Monday and the turmoil in global markets were reactions to the House vote.

Confidence will rise if a sound plan is passed this week.