Obama, mcCain Cautious in Addressing Financial Crisis

By CHARLES BABINGTON

By Charles Babington

The Associated Press

WASHINGTON

Presidential rivals Barack Obama and John McCain warily addressed the nation’s financial crisis and a proposed $700 billion response Tuesday, demanding changes in the Bush administration’s plan without specifying exactly what would trigger their outright opposition.

The financial meltdown is bedeviling both candidates, who know the Nov. 4 election could turn on voters’ sense of who can best keep the country from a deep recession. They have acted cautiously so far, avoiding the intense debate in Congress and offering similar calls for greater oversight and taxpayer protections, which rank among the less contentious criticisms of the plan.

Neither campaign has changed its tax or spending proposals even though the country suddenly faces the prospect of much higher deficits, an overhaul of key financial institutions and the essential nationalization of the country’s largest insurance company. Whether they deal with it now or not, economists and analysts say, because of the worsening fiscal environment, the next president may find it extremely difficult to keep all his promises .

As Congress nears a showdown over the proposed $700 billion bailout, Obama and McCain almost surely will have to take a stand. Obama said he would return to Washington to vote if the outcome is likely to be close.

Both men know that many voters dislike the proposal but that lawmakers who oppose it risk blame if congressional inaction leads to even deeper economic calamities.

The two nominees Tuesday amplif ied their reactions to the financial mess, reading from texts before taking several questions . Both called for greater oversight; for ensuring that taxpayers benefit if repackaged loans are sold at a profit or the bailed-out companies recover; and for limiting the pay of executives at firms covered by the bailout.

Originally published by BY CHARLES BABINGTON.

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