US crisis ‘could turn to catastrophe’

Barack Obama took his case for the $838 billion stimulus package directly to the American public as he warned that the economic crisis could turn "into a catastrophe" unless the money was swiftly approved.

At a White House press conference last night, Mr Obama's first, he said the eyes of the world were on the US to see how it responded to the worst economic crisis since the Thirties.

Hours earlier the Senate voted 61-36 in favour to end its debate over the stimulus bill. Mr Obama said his plan would create up to four million jobs, and that his administration had inherited a deficit of over $1 trillion. "Those are deficits that could turn a crisis into a catastrophe, and I refuse to let that happen," he said.

The President painted a depressing picture. He said TV stations in Elkhart, Indiana, were running public service announcements telling people where they can get free food. "Similar scenes are playing out in cities and towns across America," he said.