Bailout not dead despite House rejection: Obama

WESTMINSTER: Democratic White House contender Barack Obama expressed confidence Monday that a rejected bailout package would still get through Congress and urged markets to stay calm.

At a rally here, Obama also scorned Republican rival John McCain's claims of leadership over the financial crisis and said his very philosophy of economic management had been exposed as bankrupt.

The Democrat said he had been on the telephone with Treasury Secretary Henry Paulson and House of Representatives Speaker Nancy Pelosi along with other congressional leaders.

"They are still trying to work through this rescue package," the senator said after the House rejected the 700-billion-dollar package in a dramatic vote.

"I'm confident that we're going to get there but it's going to be a little rocky," Obama said.

"It's important for the markets to stay calm because things are never smooth in Congress and to understand that it will get done."

Shares on Wall Street tumbled by nearly 700 points as the bill appeared headed to defeat and then recovered some 200 points as the vote was finalized.

In scenes of rare suspense on the House floor, sworn Republican foes of the government's intervention and rebel Democrats combined to doom the bill by 228 votes to 205, after President George W. Bush had pleaded for its passage.

"Right now Democratic and Republican leaders have agreed but members have not yet agreed. There's going to be some bumps and trials and tribulations and ups and downs before we get this rescue package done," Obama said.

"One of my messages I have to Congress is, get this done. Democrats, Republicans, step up to the plate and get it done."

Obama said the reshaped bill, with added protection for struggling homeowners and stricter congressional oversight, was far superior to the original "blank check" sought by Bush.

He added that if he beats McCain in the November 4 election, he would order a line-by-line review of the package to ensure taxpayers are getting the best deal possible.

Obama meanwhile picked up on a New York Times story from Sunday that McCain, a veteran of late-night sessions in Nevada casinos, had extensive links to corporate lobbyists pressing for gambling deregulation.

"I read the other day that Senator McCain likes to gamble. He likes to roll those dice. And that's ok. I enjoy a little friendly game of poker myself," the Democrat said at the Colorado rally.

"But one thing I know is this -- we can't afford to gamble on four more years of the same disastrous economic policies we've had for the last eight."

The Democratic Party was airing a new video highlighting the New York Times article, targeting conservative and religious websites whose evangelical readers may decry gambling as a social ill.

In a shot at McCain's intervention in delicate congressional talks over the bailout, Obama said the Republican's philosophy "prefers scoring political leadership rather than (offering) smart leadership."

"It is time we had some adult supervision. That's why I'm running for president."