Economic turmoil shakes up campaign strategies

With turmoil growing in financial markets that rely on trust and public confidence, each of the three candidates claimed to have ideas to guide the country through this complex and risky time.

That meant shifting gears quickly. Presumptive Republican nominee John McCain was in Iraq, a trip intended in part to add to his foreign policy credentials. Democrat Hillary Rodham Clinton was in Washington to deliver what her campaign called a "major speech" on the war. And Barack Obama, her party rival, was preparing to give an address on race and politics in Philadelphia today.

Though McCain, Clinton and Obama have talked often about taxes and spending cuts, discussing the tools available to the Federal Reserve to stem financial crises did not appear to be natural terrain for any of them.

On Monday, the three applauded the Fed's weekend move that paved the way for the buyout of Wall Street brokerage Bear Stearns. But none of the candidates offered specific economic policy proposals beyond their past statements addressing the months-old housing mortgage crunch.

Clinton issued a broad call "to be vigilant; to do everything in our power to maintain confidence in our financial system." Obama noted that when the nation faced adversity in the past, "we have summoned a spirit of cooperation and innovation to emerge stronger and more prosperous than we were before."

All of the candidates signaled an openness to consider at least some type of government intervention, such as increased regulation of financial markets. It was a noteworthy stance for McCain, who has staked out a more free-market approach to economic policy.

But comments from his chief economic advisor underscored the need for McCain to draw a distinction between himself and President Bush, who was the target of criticism Monday over what Democrats called his lack of leadership during the current economic crisis.

Asked whether McCain would consider heightened regulation to address the financial turmoil, advisor Douglas Holtz-Eakin said the candidate would not rule that out.