Obama, McCain seek gain in crisis

DES MOINES, Iowa (AP) — White House rivals John McCain and Barack Obama combined televised attack ads with statesmanlike appeals for bipartisanship Tuesday as they vied for political gain in the shadow of the worst economic crisis since the Great Depression.

Both men spoke privately with President Bush about the collapse of the financial industry, then publicly made clear their differences with him, McCain more gently than his Democratic rival.

The Republican, campaigning in Iowa, pointedly told reporters there were steps the administration could still take “with the stroke of the pen to help alleviate the crisis gripping our economy. I urge them to do so.”

McCain mentioned using a federal stabilization fund to back uninsured money market accounts. The Treasury Department is already using the fund to guarantee money market mutual funds, which were the only uninsured money market accounts. Treasury announced that program Sept. 19 after the failure of Lehman Bros. produced a surge of withdrawals from such funds.

The GOP candidate also suggested wielding authority to purchase $1 trillion in mortgages.

In addition, first Obama and then McCain said Congress should lift the current federal deposit insurance limit of $100,000 to $250,000.

Obama’s campaign released a new commercial critical of the administration and his campaign rival at the same time. “The old trickle-down theory has failed us,” the Illinois senator said in the ad. “We can’t afford four more years like the last eight.”