Obama Adds $60 Billion to Economic Plan; McCain Expected to Unveil Proposals Today

"CEOs got greedy. Politicians spent money they didn't have. Lenders tricked people into buying homes they couldn't afford, and some folks knew they couldn't afford them and bought them anyway," Obama said as the crowd of about 3,000 applauded. "We've lived through an era of easy money, in which we were allowed and even encouraged to spend without limits; to borrow instead of save."

He conceded: "For many folks, this was not a choice but a necessity. People have been forced to turn to credit cards and home-equity loans to keep up, just like our government has borrowed from China and other creditors to help pay its bills. But we now know how dangerous that can be. Once we get past the present emergency, which requires immediate new investments, we have to break that cycle of debt."

The Toledo speech coincided with a meeting of House Democratic leaders to discuss action on a stimulus bill when the chamber reconvenes, as planned, after the election.

Exiting what she called an economic summit, Pelosi told reporters that the nation is in "survival mode." Declining to outline a specific plan, she appeared with a group of liberal economists who endorsed a massive federal government investment in infrastructure and cash transfers to state and local governments that are facing shortfalls and layoffs. They also endorsed another 13-week extension of unemployment benefits.

Pelosi said the new proposals are a necessary counterpoint to the $700 billion rescue plan Congress passed for Wall Street.

"It seemed it was a largely Republican package with largely Democratic votes. If it's going to happen that way, we might as well write the bill ourselves and do the right thing for the American people," she said.

On a conference call with reporters, Holtz-Eakin called Obama's new ideas "hypocrisy."

He accused the Democrat of supporting tax increases that would more than offset the tax credit he proposed Monday. And he said Monday's proposals would "hardly undo" the damage to the economy created by Obama's plan to boost the top marginal income tax rates.

"He pretends to offer a, quote, 'rescue,' " he said of Obama. "But the rescue is simply from the threat of his own policies."

McCain spokesman Brian Rogers said it was always the campaign's intention to devote Monday's speech to "John McCain's view of this race and what the stakes are."

In his address, McCain frankly acknowledged that he is behind in polls but said he has been counted out before.

McCain portrayed himself as the pugnacious underdog. He revived his acceptance speech at the Republican National Convention and used a version of the word "fight" at least 17 times.