US Republican presidential candidate Senator John McCain pitched a $300 billion plan to help struggling homeowners last night as he tried to erode an advantage held by Democratic rival Barack Obama on economic issues.
The day after a sometimes tense second presidential debate, the ailing economy again took center stage in the White House contest.
Both candidates welcomed cuts in global interest rates, even though the reductions failed to stop the tumult on Wall Street.
Two snap polls judged Mr Obama the winner of the Nashville, Tennessee, debate on Tuesday night. That suggested that Mr McCain, a Republican, could be running out of chances to recast the November 4th race, which has been trending toward his Democratic opponent.
Mr McCain offered more details yesterday on a plan he suggested in Nashville to have the government buy up troubled loans from people who have seen their home values fall below their debt. The loans would then be structured into more affordable mortgages.
"Under my orders as president, the secretary of the Treasury will carry out a home ownership resurgence plan," Mr McCain told a rally in Bethlehem, Pennsylvania. "The dream of owning a home should not be crushed under the weight of bad mortgages."
The Arizona senator called the plan a "a critical first step our country must take to get through this time of crisis."
The Obama campaign dismissed the idea as "more costly and out-of-touch than we ever imagined" and noted the Treasury already had authority under a $700 billion rescue plan approved by Congress to buy up distressed debt.
"John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money, and put them at risk of losing even more if home values don't recover," said Jason Furman, economic adviser to Obama.
Mr Obama, an Illinois senator, has sought to portray his rival as an erratic leader in the financial crisis. Democrats sharply criticised Mr McCain last month when he briefly suspended his campaign to help Congress negotiate the bailout package. Mr McCain's critics said his move hurt, rather than helped, the negotiations.
"This is a time for resolve and steady leadership," Mr Obama told an outdoor rally at a fairgrounds in Indianapolis. He also accused Mr McCain of offering the policies of President George W. Bush "that led us into this mess in the first place."
Mr McCain's running mate, Sarah Palin, said Mr Obama's efforts to tie Mr McCain to Mr Bush were "starting to wear pretty darn thin."
"Last night Senator McCain talked about real and pragmatic solutions. Barack Obama talked about why he'd rather run against George Bush," Ms Palin, the Alaska governor, said as she appeared with Mr McCain at the Bethlehem rally.
Polls show voters favour Mr Obama on economic issues, giving him a lead between 4 and 9 percentage points in national surveys released in the past few days.