Facing skeptical lawmakers in both parties, the Treasury Secretary and Federal Reserve Chair are defending their efforts so far in the Wall Street bailout, telling a House hearing that the outlook for the U.S. financial system is improving.

"The way I look at where we are today, is that I think we have turned the corner in terms of stabilizing the system," said Treasury Secretary Henry Paulson.

Not everyone was convinced, with Democrats wondering if Paulson sounded like a modern day Herbert Hoover and his optimism about the future, before the Great Depression hit.

Paulson was asked about extending bailout money to the Big Three Automakers, whose executives are also on Capitol Hill today, but the Secretary again said carmakers should not get money that was intended for the financial system.