Bush credits government's financial moves

WASHINGTON, Nov. 15 (UPI) -- U.S. President George Bush said Saturday that measures the federal government has taken to help the nation's economy are beginning to take effect.

The president added that without the government's "extraordinary measures" the country could have gone into severe economic depression.

"Those of you who have followed my career know that I'm a free-market person," he said. "Until you're told that if you don't take decisive measures, then it's conceivable that our country could go into a depression greater than the Great Depression."

Bush's comments come as the G20 summit, where world leaders from 20 of the world's largest economies are gathering for talks.

Bush said the world's governments need to take steps "without destroying incentives for innovation or destroying the marketplace." Those steps include improved regulations and adapting financial systems to account for the "realities of the 21st century."

The summit is expected to call for increased regulations on the global banking systems and credit markets. European leaders are said to call for greater oversight of hedge funds and for increasing the minimum amounts of money banks must keep in reserve.

Previously this week, Bush said defended Western-style capitalism and warned against excessive regulation.

"We must recognize that government intervention is not a cure-all," Bush said Thursday. "History has shown that the greater threat to economic prosperity is not too little government involvement in the market -- but too much."