Obama says bailout needed to avert catastrophe

LA CROSSE, Wisconsin (Reuters) - Presidential candidate Barack Obama said on Wednesday it was crucial for lawmakers to pass a $700 billion financial bailout package in order to avert an economic catastrophe.

"To the Democrats and Republicans who have opposed this plan, I say this: 'Step up to the plate. Do what's right for the country, because the time to act is now'," Obama told rally in La Crosse, Wisconsin.

Obama, a Democratic senator from Illinois, plans to fly back to Washington later to cast a vote in favor of the plan in the Senate.

"It is clear that this is what we must do right now to prevent a crisis from turning into a catastrophe," he said.

Obama said the country would be in for a "long and painful recession" if the bailout bill is not passed.

"Thousands of businesses could close. Millions of jobs could be lost," he said.

Obama's Republican rival in the November 4 election, Arizona Sen. John McCain, is also heading back to Washington for the vote as is Obama's running mate, Delaware Sen. Joe Biden, a Democrat.

(Reporting by Caren Bohan, Editing by Sandra Maler)