Responding to news of the failure of the Wall Street bailout legislation, Sen. John McCain (R-AZ) said it is “time for all members of Congress to go back to the drawing board.” He reiterated principles he hoped the bill would follow, including “responsible oversight, effective transparency, added protections for the taxpayers, and a cap on excessive salaries for executives.” He also said the bill should “have no earmarks.”

Sen. Barack Obama (D-IL) responded by assuring voters that an emergency package will be passed and that “we are not going to lose jobs at an even faster clip than we are doing right now.” On Tuesday, Obama proposed raising the current limit on federal deposit insurance from $100,000 to $250,000 as part of the economic rescue deal.

TRADE: Congress on Monday passed the Mercury Export Ban Act of 2008, which Obama introduced in March 2007. The bill bans the export of mercury from the United States. “I am proud this bill will now remove a significant portion of mercury from the global market,” Obama said in a statement.

Both presidential candidates said Sunday they will likely support the proposed $700 billion federal financial bailout deal. On Face the Nation Sunday, Sen. Barack Obama (D-IL) repeated his call (PDF) to “update our 20th century regulatory framework for a 21st century global financial system.”

Asked on ABC’s This Week whether the proposal satisfied his principles, Sen. John McCain (R-AZ) replied, “Yes, protect the taxpayer, make sure that there isn’t excessive compensation for CEOs, a oversight body, not leaving all the decisions in the hands of one individual.”

DEBATE: The New York Times pointed out a “role reversal” among the presidential candidates policy toward Pakistan in Friday’s debate.

The Atlantic’s Marc Ambinder examines the candidates’ argument about negotiating with Iran.

Both presidential candidates spoke at the Clinton Global Initiative conference on Thursday. Sen. John McCain (R-AZ) stressed the need to limit carbon emissions. “To make the great turn away from carbon-emitting fuels, we will need all the inventive genius of which America is capable,” he said. “We will need as well an economy strong enough to support our nation’s great shift toward clean energy.”

Sen. Barack Obama (D-IL) pledged to reduce greenhouse gas emissions by 80 percent by 2050. He also emphasized the security threats posed by spreading poverty, saying it “leads to pockets of instability that provide fertile breeding grounds for threats like terror and the smuggling of deadly weapons that cannot be contained by the drawing of a border or the distance of an ocean.”

PALIN: In an interview with CBS Evening News on Thursday, McCain’s runningmate, Gov. Sarah Palin (R-AK), said she does not believe Pakistani President Asif Ali Zardari is protecting al-Qaeda. She added she believes the Pakistani people “want democratic values to be allowed in their country, also. They understand the dangers of terrorists having a stronghold in regions of their country.”

The American public is increasingly optimistic about the situation in Iraq, but is not as interested as it once was in global engagement, a new survey from the Pew Research Center for the People & the Press and CFR shows.

–According to the poll, 58 percent of Americans say U.S. military operations in Iraq are going well. Still, 45 percent say the United States should keep troops in Iraq, while 50 percent say the United States should withdraw. By comparison, a recent Chicago Council on Global Affairs public opinion survey (PDF) showed 67 percent of Americans say the United States should withdraw right away.

–The study shows major differences between the political parties on other issues. 28 percent of Republicans and 43 percent of Democrats say strengthening the United Nations should be a priority.  The Chicago Council on Global affairs survey showed 39 percent of all Americans said strengthening the United Nations is very important.

–22 percent of Republicans say dealing with climate change should be a priority, compared with 64 percent of Democrats. 76 percent of Americans rated energy independence a top priority. This figure corroborates the findings of the Chicago Council on Global Affairs study, which showed 80 percent of Americans said securing adequate energy supplies is “very important.”

–In 2004, 47 percent of Americans listed the prevention of genocide as a top foreign policy goal for the United States. Now, the study shows, only 36 percent prioritize genocide prevention.

The poll also looked at presidential politics, noting that a large majority of swing voters view Sen. John McCain (R-AZ) as better equipped to deal with foreign policy than Sen. Barack Obama (D-IL). 60 percent of Americans say the next president should focus on domestic policy rather than foreign policy.

Sen. John McCain (R-AZ) and Sen. Barack Obama (D-IL) released a joint statement on Wednesday calling for bipartisan cooperation to solve the economic crisis. McCain announced on Wednesday he would suspend his campaign and return to Washington to help broker a deal on a financial bailout. Together, the candidates will meet with President Bush (CNN) and leaders of the House and Senate Thursday to work on the bailout plan.

DIPLOMACY: In a speech on national security on Wednesday, Obama’s runningmate, Sen. Joe Biden (D-DE), called for increased diplomacy. “The worst nightmare for a regime that thrives on isolation and tension is an America ready, willing and able to engage. Since when has talking removed the word ‘no’ from our vocabulary?” Biden asked.