March 28 (Bloomberg) -- Democratic presidential rivals Hillary Clinton and Barack Obama each claimed they would be stronger than the other in an economic crisis, arguing they had better advisers.

Clinton named former Treasury Secretary Robert Rubin as representative of the quality of an economic team that Americans and markets will trust.

``People like former Secretary Rubin are pretty hard to beat when it comes to managing the economy,'' Clinton, a New York senator, said in an interview on Bloomberg Television's ``Political Capital with Al Hunt,'' to be aired today.

Obama, in a separate interview as he campaigned in Pennsylvania, noted that former Federal Reserve Chairman Paul Volcker, a supporter, was advising him on the financial crisis and said he also speaks to billionaire investor Warren Buffett ``on a regular basis.''

Buffett hasn't endorsed either candidate. The Volcker endorsement sets up a dueling ex-Fed chairman rivalry of sorts between the two Democratic contenders.

Clinton, in response to a question, defended former Fed Chairman Alan Greenspan, whom she has said she would tap for advice. Critics say the Fed's monetary and regulatory policies under Greenspan contributed to the current crisis.

``I think you have to look at his entire record and context,'' Clinton, speaking from Indiana, said in her interview. ``I think there's enough blame to go around for all of us.''

Praise for Greenspan

Clinton, 60, and Greenspan have praised each other over the last year, although the former Fed chairman has indicated he will vote for Republican candidate John McCain in a general election.

Clinton cited the economic record of her husband's administration and her experience in it, while Obama, 46, said he understands how the economy works for ordinary Americans.

More important, he said, is the ability to ``shake things up in Washington,'' adding that Clinton's ties to lobbyists make her ``less equipped to have a sharp break from the past.''

Both candidates said innovations in the financial markets have outpaced regulation and called for new laws to oversee the financial industry, though Obama was quicker to call for more sweeping regulation.

There's a need to have regulations ``that work, are enforced, that increase transparency and accountability,'' Obama said. He suggested the Clinton administration and Congress went too far in 1999 in repealing the Depression-era Glass-Steagall regulations that created a barrier between commercial and investment banks.

`New Regulatory Systems'

Obama didn't call for reinstatement of the Glass-Steagall Act. Instead, he said, there is a need to ``build new regulatory systems that are flexible and reflect new realities.'' He has called for the Federal Reserve to have more regulatory authority over financial institutions, which would have to increase capital reserves held to protect against losses.

Clinton also acknowledged that deregulation may have gone too far in 1999, saying conditions have changed. ``The global economy when Glass-Steagall passed was not what it is today,'' she said. ``We have to deal with things now that didn't exist, like sovereign-wealth funds.''

Clinton hasn't called for any new regulatory powers for the Federal Reserve or other new laws.

She reiterated her three-point plan to put a moratorium on foreclosures, a five-year freeze on subprime adjustable interest rates and a $30 billion fund to help towns and states to deal with consequences of foreclosures.

Stem the Crisis

``We have to try to stem the foreclosure crisis that is at the root of our credit and market challenges,'' she said.

Obama's plan includes $10 billion for homeowners facing foreclosure, aid for state and local governments to prevent service cuts and expanding unemployment insurance to cover more workers.

``We can create a floor in the housing market that will help restore some confidence in the overall credit markets, which has to be our No. 1 priority,'' he said.

On the economy, the candidates hewed to a common theme. Each was reluctant to predict the odds of a deep recession going into 2009; both said they would be more aggressive on the economy than President George W. Bush has been.

``I'm hoping we can avoid a deep recession. I think if we were to act vigorously now we could,'' Clinton said today. ``We have to restore confidence and trust, and we have to look like we're in charge of our fiscal destiny,'' which Bush has not done, she said.

Obama said if policymakers act quickly to put a floor on home foreclosures, ``it's still possible to make this a recession that is relatively shallow.''

`Standing Pat'

Obama said he was ``not impressed'' with Bush's March 14 economic speech. ``He seemed to be standing pat and watching what was going on,'' Obama said. ``I hope this administration acts promptly. If not, then I will as president.''

Clinton said it is her ``intention'' to release her full tax returns, not just summaries of them, in the coming days. Obama released seven years of his tax returns this week.

The Clintons' returns might shed light on some of Bill Clinton's business dealings.

Both candidates dismissed complaints that their nomination battle is hurting the party. They expressed confidence that Democrats would rally around the nominee to oppose McCain.

``This has been very good for the Democratic Party,'' Clinton said. The campaign has been ``pretty positive and civil'' and has brought ``millions of new people into the process.''

``There are much greater differences between either of us and Senator McCain,'' Clinton said.

Obama echoed the sentiment.

`Heated Primary'

``We're in the middle of a heated primary,'' Obama said. ``People are really intensely into it. And some of our surrogates have been saying silly things.''

When a nominee is chosen and Democrats ``start pondering'' the prospects of a Republican presidency under McCain, 71, Obama said, ``I promise you we're going to be unified.''

Clinton, with a laugh, rejected a plea from Vermont Senator Patrick Leahy to drop out of the race for the party's sake.

Clinton can't win, Leahy told Vermont Public Radio, and the continuing fight between Obama and Clinton is giving McCain a ``free ride.''

To contact the reporters on this story: Matthew Benjamin in Washington at mbenjamin2@bloomberg.net. Lorraine Woellert in Washington at lwoellert@bloomberg.net;

Last Updated: March 28, 2008 18:36 EDT