Obama to nation: 'We will recover'

WASHINGTON -- President Obama proclaimed that the "day of reckoning has arrived" after an era of greed and instant gratification, and he called on Americans Tuesday to "take responsibility for our future once more."

In a sobering speech to a nation shaken by economic turbulence and stark predictions of more difficult times ahead, Obama also sought to spark optimism and confidence in his plan for recovery.

"We will rebuild, we will recover, and the United States of America will emerge stronger than before," he told a joint session of Congress.

Obama said the government must take unprecedented steps to halt the dizzying economic downturn, steps that go beyond the $787 billion economic stimulus package he signed into law. "Now is the time to jumpstart job creation, restart lending and invest in areas like energy, health care and education that will grow our economy, even as we make hard choices to bring our deficit down," he said.

He placed blame for the crisis on collective irresponsibility: politicians squandering surpluses to give tax cuts for the wealthy, regulators gutting rules in the name of quick profits and people buying homes they couldn't afford at the urging of reckless bankers.

Obama said sacrifices will have to be made all-around, but new investments are key to recovery. His said his multifaceted plan includes:

• A budget blueprint he will release on Thursday that will reflect "the stark reality of what we've inherited — a trillion dollar deficit, a financial crisis and a costly recession." He said Democrats and Republicans will have to "sacrifice some worthy priorities" because there's no money to pay for them. "And that includes me," he said.

• A plan to cut the deficit in half in four years. He said aides have identified programs that could be cut to gain $2 trillion in savings over 10 years.

• New spending on energy independence, education and health care. "The only way to fully restore America's economic strength is to make the long-term investments," he said.