_There is "little doubt we've moved into recession," which he said underscores the need for a second economic stimulus package, swift steps to shore up the housing market and a long-term energy policy to reduce reliance on foreign oil.

_Removing U.S. forces from Iraq won't be "perfectly neat," adding that a call from Iraqi Prime Minister Nouri al-Maliki for a withdrawal timetable supports his position more than the longer-term presence favored by rival John McCain or his fellow Republican, President Bush. Bush and the Arizona senator have chided Obama for proposing to withdraw U.S. forces within 16 months of taking office. McCain, a Vietnam War veteran, has even suggested it exhibits naivete by his rival, a freshman senator from Illinois.

"John McCain and George Bush both said that if Iraq, as a sovereign government, stated that it was time for us to start withdrawing our troops, then they would respect the wishes of that sovereign government," Obama told reporters as he flew from Chicago to California.

_He has been closely monitoring the financial health of mortgage providers Fannie Mae and Freddie Mac. Concerns falling home values may require a government bailout prompted a Wall Street sell-off Friday before markets recovered. "There are a lot of different definitions of what a `bailout' would look like," Obama said. "There are issues related to the short-term liquidity _ can they borrow money? _ versus issues related to whether the underlying assets of the two corporations are really unsound. And I think we need to watch carefully and see how it plays out before we make a decision about which steps need to be taken."

_He hadn't spoken with the Rev. Jesse Jackson since the civil rights leader spoke into an open microphone that he wanted to castrate Obama for delivering a speech about fatherhood that Jackson thought spoke down to black men. "I had spoken to him before, a few days before what he said was released, and, we had actually discussed some of the concerns that he had raised about my fatherhood speech, and I told him that I absolutely believe that we have structural inequalities that have to be dealt with," the senator said.