UPDATED: Bernanke issues warning; Dow ends down in volatile day

WASHINGTON - While Federal Reserve Chairman Ben Bernanke bluntly warned reluctant lawmakers Tuesday they risk a recession with higher unemployment and increased home foreclosures if they fail to pass the Bush administration's $700 billion plan to bail out the financial industry, late-afternoon trading jitters pushed the Dow down again after another volatile day on Wall Street.

The Dow ended the day below the vaunted 11,000 mark at 10,854.17, a loss of 161.52 points or 1.47 percent.

Bernanke sketched a scenario in which neither businesses nor consumers could borrow money as President Bush and top lawmakers leaders in both parties voiced hope for agreement within days on a plan to ease the crisis.

"Nobody is happy" about the bailout request, said House Majority Leader Steny Hoyer, D-Md., although he spoke of possible passage of legislation by the weekend.

"Nobody wants to have to do this," agreed Rep. John Boehner of Ohio, the Republican leader. He said he was hopeful of a quick agreement, despite withering criticism from conservative GOP lawmakers, some of whom likened the plan to socialism.

For details, see Wednesday's Vindicator or www.vindy.com.

(Associated Press reports contributed to this story.)