White House contenders Barack Obama and John McCain sought to persuade sceptical Americans today to back a $700 billion Wall Street bailout plan, warning they face economic calamity if there is no deal.
So far the Democratic and Republican presidential candidates have had little impact on the debate surrounding the Wall Street rescue, which was torpedoed in the House of Representatives on Monday.
A day after Mr Obama and Mr McCain blamed each other for contributing to the collapse of the legislation, each stressed the need for both parties to work together to try to reach an agreement palatable to some of the 95 Democrats and 133 Republicans who combined to defeat the bailout.
And they both encouraged Americans to back a Wall Street bailout because, as Mr McCain said in Des Moines, Iowa, "inaction is not an option."
A new poll by the Pew Research Centre found weakening public support for the bailout. The September 27th-29th survey said Americans only backed the plan by a 45 per cent to 38 per cent margin.
Mr Obama told thousands at an outdoor rally in Reno, "It is not a time for politicians to concern themselves with the next election. It is a time for all of us to concern ourselves with the future of the country we love. This is a time for action."
Both Mr Obama and Mr McCain said they backed lifting the limit on bank deposit insurance from the current maximum of $100,000 to $250,000 as a way to restore confidence.
Each candidate had a telephone conversation with President George Bush about the crisis. "I will be talking to leaders and members of Congress later today to offer this idea and urge them to act without delay to pass a rescue plan," Mr Obama said in an e-mailed statement to reporters.
Mr McCain said he believed one reason Congress did not approve the package was because "it hasn't really sunk in that the people who are hurting and are being hurt are Main Street families, small businesses, those kinds of people that are the engine of our economy."
Democrats accused Mr McCain of interfering last week when he suspended his campaign and flew to Washington to participate in bailout negotiations that ended in disarray.
Opinion polls show Americans trust Mr Obama more to handle the US economy, helping him jump out to a slight advantage over Mr McCain with election day five weeks away on November 4th.
Mr McCain has suggested some short-term steps to stem the crisis, such as broadening the use of the Treasury's Exchange Stabilization Fund, a Depression-era fund that was used in the mid-1990s to help Mexico through a financial crisis. The Bush administration is already tapping it to help money market funds.
Earlier, Mr Bush said the US economy was depending on decisive action from the government on a financial bailout plan or the economic damage could be "painful and lasting".
"I assure our citizens and citizens around the world that this is not the end of the legislative process," Mr Bush said a day after the House of Representatives rejected a $700 billion plan.
"We're at a critical moment for our economy and we need legislation that addresses the troubled assets ... allows the American economy to get moving again."
"If our nation continues on this course the economic damage will be painful and lasting," he told reporters at the White House.
Mr Bush made a statement on the rescue package after meeting with economic advisers including Federal Reserve Chairman Ben Bernanke to consider the administration's next move.
Reuters