After one of the most tumultuous weeks on the money markets, George W Bush last night sought to reassure the American public, noting how "anxiety can feed anxiety" but stressing that his administration's $700bn (£411bn) bailout plan was aggressive enough to succeed.

The sentiment had something of a ring of a former age about it, when Franklin D Roosevelt, assuming the US presidency in the depths of the Great Depression, urged his fellow citizens to regain faith in themselves, telling them in his inaugural address: "The only thing we have to fear is fear itself."

While comparing Dubya to FDR might be just a mite overblown, it seems the current president's words of reassurance failed to have any immediate impact. As he was speaking the Dow Jones fell even further; no-one, on the stock exchange at least, appeared to be listening to the lame duck president.

Speaking as the world's leading finance ministers were corralled in Washington, Mr Bush claimed his government had a comprehensive plan that would see America through.

He pointed to how major countries were working together in an attempt to stabilise markets and end the spreading panic, including co-ordinated cuts in interest rates.

"Through these efforts, the world is sending an unmistakable signal. We're in this together and we'll come through this together," the president declared.

At one point yesterday something unexpected happened. Traders on Wall Street cheered as the Dow Jones, having plunged on opening, briefly crept into positive territory. The yo-yo index fell back again before rallying at close to end 128 points down.

As the sun set in Washington, the G7 finance ministers, including Alistair Darling, as well as central bankers, were ensconced in talks, trying to come up with a global plan to heal the world's ailing financial system.

The chancellor did not mince his words when he said: "This is a genuinely global problem and we, all of us, all over the world, need to step up to the mark and do something about it. I believe that governments can make a difference, they will make a difference provided that we agree to act together."

Using his well-worn phrase regarding the British economy, Mr Darling insisted the largest economies were "prepared to do whatever it takes" to come up with a workable solution.

"There is a range of things that need to be done. The critical thing is that we don't just talk about these things, we actually get on with them."

A large part of the master plan could be based on Britain's well-received blueprint of liquidity, guarantees and capital.

Prime Minister Gordon Brown yesterday called on other countries to follow the UK lead on recapitalising banks. "What we need now is for other countries to be doing similar things," he said.

And it looked as though America is considering doing just that. In his Rose Garden address, Mr Bush alluded to the recapitalisation idea, albeit briefly. He told reporters his administration's $700bn bailout plan gave the Treasury Department a number of options, including "purchasing equity of financial institutions".

He added: "The plan we are executing is aggressive. It is the right plan. It will take time to have its full impact. It is flexible enough to adapt as the situation changes. And it is big enough to work."

Yet, while Berlin is also looking at the UK plan, others in the G7 appear to be less enthusiastic about recapitalisation. However, minds appear at long last to be being focused, and that action might not be far off. Over this weekend the IMF convenes and today Mr Bush is due to meet the G7 finance chiefs.

Last night it emerged that Nicolas Sarkozy, the President of France, which holds the rotating EU leadership, had called a summit of European leaders in Paris for tomorrow despite the fact that there is a Brussels Council on Wednesday.

Meantime, pressure is gathering for a meeting of the G8 leaders with Silvio Berlusconi, the Italian premier, pressing for it to take place as early as Monday in America.

It seems that world leaders finally are fully appreciative of the dire nature of the current crisis, no doubt with the alarming words ringing in their memories of the late great Canadian economist J K Galbraith, who said the most telling feature of the 1929 crash was that "the worse continued to worsen".

Yesterday in the White House Rose Garden, Mr Bush - just weeks before the US presidential election - insisted: "We can solve this crisis and we will." However, one analyst bemoaned the lack of strong leaders to see us through, saying: "It's not like we have a Franklin Roosevelt and a Churchill."

Perhaps Mr Bush might find it easier to bear in mind another FDR quote: "When you get to the end of your rope, tie a knot and hang on."