Democratic presidential nominee Barak Obama says he has a plan for the economic rollercoaster Wall Street is currently riding.
But he's not giving out any details about how he would bring stability to the markets.
The Illinois senator told reporters in Florida Friday he thinks "broad authority" should be given to the Treasury Department. He said any recovery plan should be guided by not rewarding reckless business leaders.
"We have an immediate emergency situation in the capital markets and it is important to provide the Treasury and the Fed broad authority to make sure the credit markets work, that bills are paid, that payrolls are made, that there's liquidity in the system," Obama said. "We have an institutional problem that has to do with a regulatory system that's inadequate to the new global marketplace."
No Bailouts for Shareholders and CEO's
Obama addressed a crowd of 8,000 where he spoke of the current administration's super efforts to help Wall Street firms, instead of helping people keep their homes. He acknowledged that a bailout would be huge, but said a more strict, targeted approach could be effective.
"I think what has to be clear is that whatever we set up is not a bailout for shareholders and CEOs," said Obama. "They need to take their losses because they were enjoying the upside while times were good."
Obama urged balance in any economic recovery plan and called again for a new economic stimulus package that includes broad-based tax cuts for the middle-class.
McCain Says Fed Bailouts Should Stop
Meanwhile, his Republican presidential opponent John McCain says the Federal Reserve needs to stop bailing out failed banking and financial institutions.
While campaigning in Green Bay, Wisc., the Arizona sentator said the Fed should get back to "its core business of responsibly managing our money supply and inflation."
McCain gave several recommendations for stabilizing markets in the current financial crisis. He said the Fed should instead, focus on shoring up the dollar and keeping inflation low.
"A strong dollar will reduce energy and food prices," McCain said in an address in front of the Green Bay Chamber of Commerce. "It will stimulate sustainable economic growth and get this economy moving again."
McCain Slams Obama
McCain said that as President he would create a Mortgage and Financial Institutions Trust to help homeowners avoid foreclosure. He also said he would propose and sign into law changes to prevent financial firms from concealing "bad practices."
He also again denounced his rival for ties to Freddie Mac and Fannie Mae and for advocating tax increases McCain said would "turn a recession into a depression."
McCain told his audience that the Illinois senator had taken large campaign contributions from both Fannie Mae and Freddie Mac.
"Maybe just this once he could spare us the lectures, and admit to his own poor judgment in contributing to these problems," McCain said of Obama.
The Associated Press reported McCain is correct when he says Obama is the No. 2 recipient of campaign money from employees of Fannie Mae and Freddie Mac. A
ccording to the AP, Obama has collected $126,349 from those sources, according to a compilation by the Center for Responsive Politics, second only to Senate Banking Committee Chairman Sen. Christopher Dodd, D-Conn., who has received $165,400. The ranking covers the period since 1989.
Source: The Associated Press