Economy serves as battleground

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By THE ASSOCIATED PRESS

7 hours, 37 minutes ago

NASHVILLE, Tenn. – Barack Obama and John McCain clashed repeatedly over the causes and cures for the worst economic crisis in 80 years Tuesday night in a debate in which Republican McCain called for a sweeping $300 billion program to shield homeowners from mortgage foreclosure.

"It's my proposal. It's not Sen. Obama's proposal, it's not President Bush's proposal," McCain said at the outset of a debate he hoped could revive his fortunes in a presidential race trending toward his rival.

In one pointed confrontation on foreign policy, Obama bluntly challenged McCain's steadiness. "This is a guy who sang bomb, bomb, bomb Iran, who called for the annihilation of North Korea -- that I don't think is an example of speaking softly."

That came after McCain accused him of foolishly threatening to invade Pakistan and said, "I'm not going to telegraph my punches, which is what Sen. Obama did."

The debate was the second of three between the two major party rivals, and the only one to feature a format in which voters seated a few feet away posed questions to the candidates.

They were polite, but the strain of the campaign showed. At one point, McCain referred to Obama as "that one," rather than speaking his name.

"It's good to be with you at a town hall meeting," McCain also jabbed at his rival, who has spurned the Republican's calls for numerous such joint appearances across the fall campaign.

They debated on a stage at Belmont University four weeks before Election Day in a race that has lately favored Obama, both in national polls and in surveys in pivotal battleground states.

Not surprisingly, many of the questions dealt with an economy in trouble.

Obama said the current crisis was the "final verdict on the failed economic policies of the last eight years" that President Bush pursued and were "supported by Sen. McCain."

He contended that Bush, McCain and others had favored deregulation of the financial industry, predicting that would "let markets run wild and prosperity would rain down on all of us. It didn't happen."

McCain's pledge to have the government help individual homeowners avoid foreclosure went considerably beyond the $700 billion bailout that recently cleared Congress. While he said bailout money should be used to help homeowners, the bailout legislation merely gave the Treasury Department authority to purchase mortgages directly.

"I would order the secretary of the Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes at the diminished value of those homes and let people be able to make those payments and stay in their homes," he said.

"Is it expensive? Yes. But we all know, my friends, until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy, and we've got to get some trust and confidence back to America."

McCain also said it was important to reform the giant benefit programs such as Medicare, Medicaid and Social Security.

"My friends, we are not going to be able to provide the same benefit for present-day workers that present-day retirees have today," he said, although he did not elaborate.

The two men also competed to demonstrate their qualifications as reformers at a time voters are clamoring for change.

McCain accused Obama of being the Senate's second-highest recipient of donations from individuals at Fannie Mae and Freddie Mac, the two now-disgraced mortgage industry giants.

"There were some of us who stood up against it," McCain said of the lead-up to the financial crisis. "There were others who took a hike."

Obama shot back that McCain's campaign manager, Rick Davis, has a stake in a Washington lobbying firm that received thousands of dollars a month from Freddie Mac until recently.

Pivoting quickly to show his concern with members of the audience listening from a few feet away, he said, "You're not interested in politicians pointing fingers. What you're interested in is trying to figure out, how is this going to impact you."

But that didn't stop the two men from criticizing one another repeatedly as the topics turned to energy, spending, taxes and health care.

Obama said McCain was going to require taxes on the health benefits workers receive from their employers at the same time his plan would wipe out the ability of states to enforce their own regulations to require tests such as mammograms.

McCain countered that under his rival's plan "Sen. Obama will fine you" if parents fail to obtain coverage for their children but had yet to say what the fine would be. "Perhaps we will find that out tonight," he said.

Obama quickly followed up, saying that McCain "voted against the expansion" of the children's health care program the government runs.

The two men prefer dramatically different approaches to easing the problem of millions of uninsured Americans. McCain favors a $5,000 tax credit that he says would allow families to find and afford health care on their own.

Obama wants to build on the current system, in which millions receive coverage through the workplace, with government funding to help uninsured families obtain coverage.

Obama also said that American International Group Inc., which was bailed out by the government, should give the Treasury $440,000 to cover the costs of a company retreat at a posh California resort less than a week after the federal intervention. "Those executives should be fired," he said, referring to the participants in the retreat.

The debate also veered into foreign policy, and the disputes were as intense as on the economy and domestic matters.

McCain said his rival "was wrong about Iraq and the surge. He was wrong about Russia when they committed aggression against Georgia. And in his short career he does not understand our national security challenges. We don't have time for on the job training."

Obama countered with a trace of sarcasm that he didn't understand some things -- like how the United States could face the challenge in does in Afghanistan after spending years and hundreds of billions of dollars in Iraq.

The audience was selected by Gallup, the polling organization, and was split three ways among voters leaning toward McCain, those leaning toward Obama and those undecided.

Tom Brokaw of NBC, the moderator, screened their questions and also chose others that had been submitted online.

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So we're going to re negotiate the mortgages at a reduced principle. So because I didn't go out on a limb. Bought what I could afford. I'm going to get a long commute and no help to pay for it. While the risk takers are going to get their bill lowered and me to pay the difference?

Real fair policy, isn't it.?

All I got out of the debate was the two major candidates, were going to try to out do each other to buy votes with my tax money. Oh and plus that , I'll never be able to retire. They'll raise the age to retire beyond my life span. Yes I got a lot out of the debate.

So much that I'm voting Nader for president.

- Steve, Raymond

Lets face the facts. Obama proves time and time again that an Obama presidency would be American Socialism. With a redistribution of wealth and a national healthcare system, I can only imagine what would be next. And worst of all, he might go completely unchecked with a Democratically controlled Senate and House of Reps.

- Ben Thomas, Bedford, NH

Obama keeps trying to tie McCain to Bush with no avail. I think McCain needs to start linking Obama to what type of president he would be: Jimmy Carter.

- Cindy Stewart, Manchester NH

Obama's belief in letting a country know that we are going to attack it before we do so just oh so perfectly explains why Obama is so nieve and cannot be trusted with the presidency. Could this man honestly be more UNFIT for the White House?

- Fred Jenkins, Manchester

What did I get from this debate? Basically that Obama's healthcare is a national healthcare program. Regardless of how he tries to slice and dice it, that it what it is. I do not want government in my healthcare, so that is my deciding reason why I refuse to vote for Obama under any circumstances.

- Ted Ginder, Nashua

Another debate, and another night to sit down and watch McCain hammer Obama on the issues. Great win for McCain.

- Kevin Lyons, Raymond, NH

Not the best debate. I think the word boring fits it best. McCain's experience certainly shined through in comparison to Obama's total lack of it, but still, overall, it was uneventful.

- Holly Lane Ginder, Concord, NH

Another win for McCain. Obama just doesn't know what he is talking about on so many issues and it is so obvious in last nights town hall format. Its not his fault, but this is what happens when the Democrats didn't put Hillary at the head of the ticket.

- Fran Winters, Concord, New Hampshire

I was on the fence, but McCain finally won me over tonight. He seemed the most presidential and had the most command of the issues. The point that stuck with me the most was that the presidency doesn't lend itself to on the job training. Obama just has no experience and no substance. We need a president who can take lead from the start and I just don't think Obama is qualified to do so.

- Tina Gilmette, New Boston

Tom Brokaw was so annoying as moderator. I also feel as if he asked the exact same questions the female moderator asked in the last debate. McCain can claim victory as I believe he won it on points and style, but still, the debate wasn't that good.

- Barbara Manning, Manchester, New Hampshire

Everyone was waiting for McCain to come out swinging and telling American about Obama's ties with terrorists and anti-American's like Wright and Ayers, but I really don't think that a town hall meeting was the format for that. McCain did a great job of sticking to the issues and dominated the debate. Now that it is back on the campaign trail, I think McCain will keep focusing on Obama's shady past and liberal policies as well as his total inexperience.

- Casey Johnes, Manchvegas

McCain came out so strong on the economy in compared to the last debate. I felt that hands down, McCain dominated all of the issues regardless of Obama's ability to speak well.

- Debra Provencher, Manchester Nh

I am so sick of tv pundits telling the view what just happened and who won or who lost the debates. I don't need a bunch of yuppies from CNN telling me what I just watched. I also was disgusted listening to people on CNN telling us that if Obama loses this election at this point, that it is all because of race. I am beginning to feel that they (since they are so obviously supporting Obama) are just trying to force people to vote for Obama by guilt because of his race and that if they don't want to vote for him because of disagreements on his policies, they are racist. This is WRONG and it is becoming more and more evident as we get closer to election day.

- Chris King, Manchester, New Hampshire

McCain came out on top, but my God was it a boring debate.

- Steve Moore, Manchester

The biggest problem in this debate was the moderator. He wouldn't let the two actually get into it and get into the issues themselves. In addition, I do believe that McCain came out stronger on the issues and did very well with the town hall style format. McCain won it hands down.

- Ryan Feltner, Manchester, New Hampshire

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