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US rivals trade blows on economy US rivals trade blows on economy
(20 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 pair also traded blows on foreign policy, the Iraq war and health care.
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.
Energy issue 'Wrong on Iraq'
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 class="" href="/1/hi/world/americas/7651100.stm">The shifting election battleground class="" href="/1/hi/world/americas/7656118.stm">Crucial debate class="" href="http://newsforums.bbc.co.uk/nol/thread.jspa?forumID=5460">Send us your comments 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.
Mr Obama would bring our troops home with defeat and I would bring them home with honour John McCain 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, on 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.
Asked whether the economic crisis would affect the ability of the US to act as a "peacemaker" in the world, Mr Obama said no country could maintain the same military influence while its economy was in decline.
He said the foreign policy approach of the Bush administration, supported by Mr McCain, had made it harder for the US to address conflicts such as in Darfur because it had lost the support of international allies.
The Illinois senator also said the US had made a bad decision going into Iraq when al-Qaeda leader Osama Bin Laden remained at large.
Both campaigns have ratcheted up the rhetoric with one month to go
Mr McCain said Mr Obama had been wrong to oppose the "surge" policy of sending extra troops to Iraq and accused him of lacking the knowledge and judgement to be commander-in-chief.
Speaking of his rival's Iraq withdrawal policy, he said: "Mr Obama would bring our troops home with defeat and I would bring them home with honour."
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.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.
He said he supported nuclear power as a safe, clean way to produce energy that would also create hundreds of thousands of jobs.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 said cutting emissions and finding alternative sources of energy was a matter of national security as well as an environmental priority.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.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' Character assaults
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.
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".
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%.
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.
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.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.
The Obama team has highlighted Mr McCain's connections to Arizona tycoon Charles Keating, who was convicted of securities fraud 20 years ago.The Obama team has highlighted Mr McCain's connections to Arizona tycoon Charles Keating, who was convicted of securities fraud 20 years ago.