Bush calls Obama, McCain to White House

WASHINGTON -- Turmoil in America's financial system threatened Thursday to upend the U.S. presidential campaign, with Barack Obama and John McCain preparing for crisis talks at the White House while at odds on going forward with their their scheduled debate.

As President George W. Bush's issued an unprecedented summons for both candidates and congressional leaders to join him at the White House to hammer out a way forward through the financial chaos, election year politics swirled around the administration's proposed $700 billion bailout plan.

In his first address to the country in a prime-time television slot this year, Bush said "our entire economy is in danger" and predicted "a long and painful recession" unless Congress takes quick action. But his prodding of lawmakers appeared incongruous as legislative leaders said they already were near a deal.

Meanwhile, voters were treated to an extraordinary display of political maneuvering. Republican McCain said he wanted to delay Friday's presidential debate and was suspending his campaign to return to Washington.

Obama rejected the call for a debate delay, but joined his opponent in issuing a statement declaring that American politicians must overcome partisanship or "risk an economic catastrophe."

The Democrat, speaking by satellite to the Clinton Global Initiative in New York, renewed his refusal on Thursday to put off the debate.

"The American people deserve to hear directly from myself and Sen. McCain about how we intend to lead our country," he said in an address from Florida. "The times are too serious to put our campaign on hold, or to ignore the full range of issues that the next president will face."

The heart of the enormous bailout plan involves the government buying up sour assets of shaky financial firms, action designed to keep essential credit markets open and and preventing what some fear would be an economic calamity not seen since the Great Depression of the 1930s.

In their joint statement, McCain and Obama said now is the time to "rise above politics for the good of the country. We cannot risk an economic catastrophe." But politics remained front and center.

The candidates spoke privately Wednesday drawing up the document, but McCain beat Obama to the punch with the first public statement, saying the Bush plan to prop up the financial community seemed headed for defeat and a bipartisan solution was needed urgently.

"It has become clear that no consensus has developed to support the administration's proposal," McCain said. "I do not believe that the plan on the table will pass as it currently stands, and we are running out of time."

But on Thursday morning, McCain said he was confident that Congress would reach consensus before markets open Monday. In remarks prepared for the Clinton gathering, McCain said bipartisan support was needed in both the House and Senate.

He explained plans to return to Washington later in the day by declaring "time is short and doing nothing is not an option."

Democratic Congressman Barney Frank, chairman of the House committee shepherding the bailout plan, said all sides were getting close to a deal and accused McCain of "trying to take credit for something that's already happening without him."

Bush, who rarely calls legislative leaders to push priority projects, took the unusual step of calling Obama personally, said presidential spokeswoman Dana Perino.

McCain said he was putting the good of the country ahead of politics, but his announcement requesting a postponement of the debate was clearly a political move -- an attempt to outmaneuver Obama on an issue -- the economy -- that has been hurting the Republican's standing in the polls.

While McCain said he would "suspend" his campaign, including advertising and fundraising, it simply will move to Washington where the four-term senator will remain in the spotlight, regardless.

Obama repeatedly stressed at his news conference that he called McCain first to propose that they issue a joint statement in support of a package to help fix the economy as soon as possible. He said McCain called back several hours later and agreed to the idea of a statement but also said he wanted to postpone the debate and hold joint meetings in Washington.

Obama said he suggested they first issue a joint statement showing bipartisanship.

"When I got back to the hotel, he had gone on television to announce what he was going to do," Obama said.

Stephen Wayne, professor of government at Georgetown University in Washington, said he understood McCain's attempt to put off the debate -- which was intended to focus on foreign policy -- because the U.S. economic crisis was likely to "swallow up McCain's strength on international relations."

In rejecting a debate delay, Obama also declined to join McCain in suspending campaign activities, and noted both he and his opponent had jets that could get them to Washington very quickly if their presence were needed. He said he had been in daily contact with congressional leaders and Treasury Secretary Henry Paulson, and didn't see an immediate need for his presence.

The University of Mississippi said it too was going ahead with preparations because it had "received no notification of any change in the timing or venue." The Presidential Debate Commission also said it was moving forward.