On Economy, Obama Offers Ideas, McCain Blames Rival

Sen. Barack Obama speaks with economic adviser and former Federal Reserve chairman Paul A. Volcker, left, and former Treasury secretary Robert Rubin before a rally at the University of Miami in Coral Gables, Fla. (Pool Photo By Al Diaz Via Getty Images)

"We've heard a lot of words from Senator Obama over the course of this campaign," McCain said. "But maybe just this once he could spare us the lectures, and admit to his own poor judgment in contributing to these problems. The crisis on Wall Street started in the Washington culture of lobbying and influence peddling, and he was right square in the middle of it."

He added: "That's not country first. That's Obama first."

Earlier in Green Bay, Wis., before a hastily assembled meeting of the local chamber of commerce, McCain said his proposed mortgage and financial institutions trust would be an "early intervention program to help financial institutions avoid bankruptcy, expensive bailouts and damage to their customers."

He said that unlike the Resolution Trust Corp. Congress created to deal with the failed savings-and-loan crisis in the 1980s, his proposed agency would identify institutions before they failed, taking a "proactive position instead of reacting in a crisis mode to one situation after another."

Beyond that, he set out a list of principles he believes are important to solving the crisis, such as protecting consumers and promoting greater transparency in financial institutions. McCain said the Federal Reserve "needs to get out of the business of bailouts" and back to its "core business of responsibly managing our money supply and inflation."

In Florida, Obama called the current financial crisis a threat to "the stability and security of our entire global economy." He said that, despite earlier, unprecedented steps by the federal government to stem the problem, "even bolder and more decisive action" is required.

"I fully support the effort of Secretary Paulson and Federal Reserve Chairman Bernanke to work in a bipartisan spirit with Congress to find this kind of solution," he told reporters before speaking at a rally at the University of Miami.

Obama said the immediate moves by Washington should not reward firms or executives who helped bring about the current crisis. "We don't want bailouts of folks who've been taking bad decisions," he said.

Obama outlined a plan earlier in the year that would pump more than $100 billion into the economy. He would send $25 billion to the states to prevent cuts in health, education or housing aid. Another $25 billion would be put into infrastructure projects, mostly for highways and schools. His plan also calls for checks of $500 per individual, or $1,000 per household, to offset higher gasoline and other energy costs. Obama would pay for those checks with a windfall profits tax on the oil industry.

Obama said the potential cost of the financial rescue would not prevent him from pushing for a middle-class tax cut if he becomes president, arguing that broad-based tax cuts are part of a long-term solution to the economy's ills.

He deflected a questioner who wondered whether, by deferring his own financial rescue plan until Washington has acted, he was standing on the sidelines at a time of economic crisis.

"You don't do it in a day," he said. "We'd better do it in an intelligent, systematic, thoughtful fashion. I'm much less interested at this point in scoring political points than I am in making sure that we have a structure in place that is sound and is actually going to work."

Barnes, traveling with McCain, reported from Minnesota and Wisconsin. Balz reported from Florida.