Obama Sees Nothing Funny About Community Organizer

Challenges Palin to Basketball Contest

"The better answer...is to figure out, how do we make sure the young mothers, or women who have a pregnancy that's unexpected or difficult, have the kind of support they need to make a whole range of choices, including adoption and keeping the child," he said.

Reacting to the latest economic news of the day Obama said he is inclined to support a government plan to place mortgage giants Fannie Mae and Freddie Mac under federal control.

"I'm inclined to support some form of intervention to prevent a long-term, much bigger crisis," he said.

Obama said he was briefed on the plan by Treasury Secretary Henry Paulson in a Friday night phone call. According to published reports, Treasury officials told executives Friday that the government would temporarily take control of the mortgage companies and inject them with capital, allowing the companies to continue playing a crucial role in the housing market, where they currently are responsible for nearly 70 percent of new loans.

But Obama said he'll only support such a government takeover if shareholders and executives of Fannie and Freddie don't profit from it.

"We are not bailing out shareholders and investors and management," said Obama. "They were making a lot of money because of the lack of regulation. All those profits were private. We don't want to make all those losses suddenly public and they get away without taking a haircut."

Obama said the Treasury plan, which could be announced later this weekend, should be only the first step in reforming the housing markets.

"We're going to have to take a look at how we regulate the financial markets and mortgage markets going forward," he said.

Looking forward to the final 60 days of the election, it appears the rivalry between the Democratic and Republican tickets for president could shift from the ballot box to the hardwood if Obama has his way. Obama jokingly concluded his interview with Stephanopoulos saying he would be open to going one-on-one in basketball with Sarah Palin.

"You know, I would play her a game of horse," said Obama. "She looks like she's got some game."

Palin was a standout high school basketball player whose skills on the court earned her the nickname Sarah Barracuda. But Obama said he doesn't fear her.

"On the basketball court, I think I'd stand up pretty well," he said.

Still, Obama said he wouldn't want to go head-to-head with Palin in another sport: target shooting.

"I know she's a sharpshooter, and I know that -- I probably wouldn't do target practice with her," he said. "I think she'd be a better shot than me."

The idea of an Obama-Palin basketball match-up was suggested by Linda Lilley, a viewer from Union City, Pa., who submitted her question for Obama on ABCNews.com.