This is a rush transcript from "On the Record ," October 6, 2008. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: Joining us live is Carly Fiorina, former CEO of Hewlett-Packard. Nice to see you, Carly.

CARLY FIORINA, FORMER CEO, HEWLETT-PACKARD, MCCAIN ADVISER: Great to be with you, Greta.

VAN SUSTEREN: Carly, what happened? The market just tanked today.

FIORINA: Well, you know, I think what the market is coming to grips with is the $700 billion bailout was important, it was necessary, but it wasn't sufficient. Economic fundamentals are continuing to deteriorate. Consumer spending is slowing all over the world. Businesses spending is clearly down, as well.

And now we're seeing this credit crisis ripple throughout the globe. We saw European banks failing. There may be some Asian contagion, as well. And so I think what traders are reflecting on is the fact that passage of that bill was really important, but we have been a long way to go in terms of the economy being where we would like it to be.

Watch Greta's interview with Carly Fiorina

VAN SUSTEREN: All right, someone sitting in the Midwest at home tonight, doing homework, getting kids to bed and trying to make the ends meet with bills, both parents -- both parents working, that kind of thing - - should they be scared? I mean, we hear all these numbers about Wall Street, but what about them?

FIORINA: Well, I think there's no question that these are tough times for American families. They're tough times because it's hard to get a student loan. It's hard to get a small business loan. That's the impact of the credit crisis on Main Street. And it is still the case that food and fuel prices are high. And so, yes, I think people's concern is certainly understandable.

I also think, very honestly, that there are some proposals that Senator McCain made eight months ago, six months ago, even a year ago that had they been enacted then, would help now. So for example, he said in April that we ought to have a home mortgage plan that would allow every worthy home owner to step forward and get themselves into a new loan that they could afford, with interest rates and principal that they could afford at a 30-year fixed-year rate. That was a great idea then, and it's an even better idea now.

So I think there are things that can be done, that must be done beyond the $700 billion bailout, but I think it will require real leadership. And I think it will require real understanding on the part of the American people that the president, the right president, in my judgment, a President McCain, has an important role to play.

VAN SUSTEREN: All right. You bring up Senator McCain, so let me go right back at you on this recent controversy. Governor Palin is raising the name of Bill Ayers. Fair?

FIORINA: Well, you know, I find the Obama camp's reaction to this kind of -- disingenuous would be a polite word. It's clear the Obama camp believes that a candidate's associations are fair game. I mean, for heaven's sake, they have an ad playing about me right now which is deceptive, which is misleading. But they clearly think it's OK to attack John McCain for his association with me.

Of course, it's fair game to point out to the American people that Barack Obama has had long-time associations with folks who don't share the majority of Americans' beliefs about what this country is all about and how a citizen should behave.

VAN SUSTEREN: All right. A quick tease. You said it was deceptive. (INAUDIBLE) What's deceitful in the ad about you?

FIORINA: Well, it's deceptive in the sense that it is inaccurate about my pay package. It is inaccurate about my track record as a CEO. It links me with those who were accused of fraud. So it's deceptive in multiple ways -- what I did, what my track record was, how much I was paid.

But the ad about me is not really the point I'm trying to make. The point I'm trying to make is it was Barack Obama who began an ad cycle with associations. It was Barack Obama who actually began the negative campaigning earlier this summer. And so for the Obama campaign to cry foul now because the McCain campaign is bringing out, in a factual way, Barack Obama's associations I think is hypocritical, frankly.

VAN SUSTEREN: Carly, thank you. Nice to see you.


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