WASHINGTON (MarketWatch) -- Treasury Secretary Henry Paulson on Thursday offered a lengthy defense of Treasury's actions to date to combat the financial market crisis and laid out the challenges that his successor will face.

In a speech delivered at the Ronald Reagan Presidential Library, Paulson took a step back and reviewed his actions to date and did not find many missteps.

"As I assess our current situation, I believe we have taken the necessary steps to prevent a financial collapse," Paulson said.

Paulson is under increasing pressure as public dissatisfaction with the $700 billion rescue package continues to mount and Congress is seeking ways to tap the pool of funds for purposes that the Treasury Secretary opposes.

Congress is clearly interested in tapping the funds to help the auto industry and to stem foreclosures.

Paulson warned that the crisis was not over, and said that unpredictable events were sure to occur.

"We must remain vigilant, ready to respond," Paulson said.

Paulson said the task ahead is to "reinvigorate market capitalism" and called for partisan sniping to end.

"Democrats and Republicans must cooperate and manage an unprecedented situation, and find solutions that restore and maintain our national economic well-being," Paulson said.

Globally, all nations must work together because they are "in the same boat," Paulson said.

"We must work together to first plug the leak, bail, and row together to reach the shore. Then we must work as a team to overhaul and refit the boat so we can handle the rough seas that will undoubtedly test us in the future," Paulson said.

Paulson did not provide mamy specifics of his immediate plans.

He has been criticized for making a U-turn from his plans to use the pool of funds to purchase toxic mortgage assets.

Paulson said this was not the final word on the subject.

"Although we are not proceeding with direct asset purchase programs, we plan to use our resources aggressively to support the normalization of credit markets and the expansion of credit to support economic recovery," he said.

"We are actively engaged in developing programs to be implemented when ready," he said.