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US rivals trade blows on economy US rivals trade blows on economy
(10 minutes later)
The US presidential hopefuls have set out their economic policies in a debate dominated by the financial crisis.The US presidential hopefuls have set out their economic policies in a debate dominated by the financial crisis.
Democrat Barack Obama said more had to be done to help the middle classes stay in their homes and accused John McCain of cutting taxes to benefit the rich.Democrat Barack Obama said more had to be done to help the middle classes stay in their homes and accused John McCain of cutting taxes to benefit the rich.
Mr McCain said Mr Obama wanted to raise taxes. He said he would order the US Treasury Secretary to buy up "bad" mortgage loans, helping create jobs.Mr McCain said Mr Obama wanted to raise taxes. He said he would order the US Treasury Secretary to buy up "bad" mortgage loans, helping create jobs.
The debate comes amid increasingly bitter attacks on the campaign trail.The debate comes amid increasingly bitter attacks on the campaign trail.
"We are going to have to stabilise home values and that way people can realise the American dream and stay in their home," Mr McCain, the Republican presidential candidate, said."We are going to have to stabilise home values and that way people can realise the American dream and stay in their home," Mr McCain, the Republican presidential candidate, said.
The Arizona senator stressed his own record of working with politicians of both parties to achieve reform and his readiness to challenge his own party if necessary.The Arizona senator stressed his own record of working with politicians of both parties to achieve reform and his readiness to challenge his own party if necessary.
Following personal attacks from both sides in recent days, there could be fireworks tonight LIVE McCain/Obama debateFollowing personal attacks from both sides in recent days, there could be fireworks tonight LIVE McCain/Obama debate
"Mr Obama has never taken on the leaders of his own party on a single issue," he said. "Let's look at our records as well as our rhetoric.""Mr Obama has never taken on the leaders of his own party on a single issue," he said. "Let's look at our records as well as our rhetoric."
He also accused Mr Obama of having one of the most liberal, big spending records in the US Senate.He also accused Mr Obama of having one of the most liberal, big spending records in the US Senate.
Mr Obama said the political process in Washington would have to change to prioritise the interests of ordinary Americans and ensure they were able to remain in their homes.Mr Obama said the political process in Washington would have to change to prioritise the interests of ordinary Americans and ensure they were able to remain in their homes.
He pointed out that Mr McCain's campaign manager, Rick Davis, had a stake in a Washington lobbying firm that received thousands of dollars a month from troubled mortgage giant Freddie Mac until recently.He pointed out that Mr McCain's campaign manager, Rick Davis, had a stake in a Washington lobbying firm that received thousands of dollars a month from troubled mortgage giant Freddie Mac until recently.
'Town Hall' debate Energy issue
The second presidential debate, taking place less than a month before the 4 November election, has generated intense interest among the public.The second presidential debate, taking place less than a month before the 4 November election, has generated intense interest among the public.
More than six million people e-mailed questions to the moderator, NBC news presenter Tom Brokaw, who is presiding over the town hall-style debate in Nashville, Tennessee. We don't throw the first punch, but we'll throw the last Barack Obama The shifting election battlegroundCrucial debateSend us your commentsMore than six million people e-mailed questions to the moderator, NBC news presenter Tom Brokaw, who is presiding over the town hall-style debate in Nashville, Tennessee. We don't throw the first punch, but we'll throw the last Barack Obama The shifting election battlegroundCrucial debateSend us your comments
He was to select only six or seven e-mailed questions, as well as about a dozen from the studio audience of 80 uncommitted voters. They will cover domestic and foreign policy. He was to select only six or seven e-mailed questions, as well as about a dozen from the studio audience of 80 uncommitted voters, on domestic and foreign policy.
Mr McCain, who was widely viewed to have lost the first debate, had vowed to take the gloves off for this encounter. Asked what they would do in terms of the environment, Mr McCain spoke of having disagreed strongly with the Bush administration over the need to act on global warming.
The town hall format is his preferred style of campaigning and may work in his favour, analysts say. He said he supported nuclear power as a safe, clean way to produce energy that would also create hundreds of thousands of jobs.
Mr Obama, meanwhile, has promised to fight back. Mr Obama said cutting emissions and finding alternative sources of energy was a matter of national security as well as an environmental priority.
He said investment would have to be made in new technologies if the US was to meet the challenge of safeguarding the environment.
'Smear tactics'
Mr McCain, who was widely viewed to have lost the first debate, had vowed to take the gloves off for this encounter, in his preferred town hall format.
Mr Obama, meanwhile, promised to fight back.
Both campaigns have ratcheted up the rhetoric with one month to go
"We don't throw the first punch, but we'll throw the last," he told a syndicated radio show."We don't throw the first punch, but we'll throw the last," he told a syndicated radio show.
Earlier in the day, Mr Obama's senior strategist, David Axelrod, told reporters that Mr McCain had indicated he was "going to be very aggressive in this debate".Earlier in the day, Mr Obama's senior strategist, David Axelrod, told reporters that Mr McCain had indicated he was "going to be very aggressive in this debate".
Ahead of the debate, campaigning took on an increasingly bitter tone, with Mr Obama accusing Mr McCain of "smear tactics" and not paying attention enough to the economy.
Mr McCain said Mr Obama was "lying" about his ties to the home loan industry and asked what his rival had ever accomplished in government.
Polling numbers
Recent opinion polls have shown Mr Obama taking a widening lead.Recent opinion polls have shown Mr Obama taking a widening lead.
The latest Gallup daily tracking poll puts Mr Obama at 50% and Mr McCain at 42%, while a new CNN poll put Mr Obama ahead by 53% to 45%.The latest Gallup daily tracking poll puts Mr Obama at 50% and Mr McCain at 42%, while a new CNN poll put Mr Obama ahead by 53% to 45%.
Both campaigns have ratcheted up the rhetoric with one month to go
Mr Obama, the Democratic candidate, is still gaining in some of the key swing states as well. A new Washington Post poll puts him 6% ahead of Mr McCain in Ohio, a state the Republican candidate probably needs to take if he is to win the presidency.Mr Obama, the Democratic candidate, is still gaining in some of the key swing states as well. A new Washington Post poll puts him 6% ahead of Mr McCain in Ohio, a state the Republican candidate probably needs to take if he is to win the presidency.
In recent days both camps have launched fresh assaults on the character of their opponent.In recent days both camps have launched fresh assaults on the character of their opponent.
Mr McCain's running mate Sarah Palin posed further questions about Mr Obama's "truthfulness and judgement". The McCain team has focused on Mr Obama's relationship with Bill Ayers, who belonged to a US militant group that opposed the Vietnam War.
Governor Palin had accused Mr Obama of "palling around" with a "domestic terrorist" - Bill Ayers. The Obama team has highlighted Mr McCain's connections to Arizona tycoon Charles Keating, who was convicted of securities fraud 20 years ago.
Mr Ayers belonged to the US militant group Weather Underground, which opposed the Vietnam War in the 1960s.
Mr Obama once served on a charity board with Mr Ayers but has denounced his radical past.
Meanwhile, the Obama campaign has been highlighting Mr McCain's involvement in a financial scandal 20 years ago.
It e-mailed supporters an internet video about Mr McCain's connections to Arizona tycoon Charles Keating, who was convicted of securities fraud after his savings and loan bank collapsed.
Mr McCain was one of five senators - known as the Keating Five - to be investigated by a Senate ethics panel over their intervention with banking regulators on behalf of Keating.
He was found to be less involved with Keating than the other senators but was criticised for "poor judgement".
Watch the second US presidential debate live from Nashville, Tennessee from 0100 GMT, with full analysis, running commentary and voter reaction.