McCain pledges homeowner help; Obama blames Bush policies

NASHVILLE, Tenn | Sen. John McCain unveiled a sweeping $300 billion proposal to prevent Americans from losing their homes as both presidential candidates sought Tuesday night in their second debate to convince undecided voters that they were best-equipped to address the economic crisis that has gripped the globe.

Just minutes into a spirited town-hall forum in which the two nominees clashed early and often, the Republican candidate said that as president, he would require the federal government to delve into the market to buy up bad mortgage debts and allow homeowners to refinance their mortgages.

“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,” Mr. McCain said at Belmont University.

The rocky economy has boosted Democrat Sen. Barack Obama in the polls, but last night, he offered no new proposals. Instead, he said the current economic crisis was the “final verdict on the failed economic policies of the last eight years” that President Bush pursued and were “supported by Senator McCain.”

“We are in the worst financial crisis since the Great Depression and I know a lot of you are worried about your jobs, your pensions, your retirement accounts, your ability to send your children and grandchildren to college,” Mr. Obama said.

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Mr. McCain pushed back, distancing himself from the Bush administration, which has borne the brunt of the blame for the Wall Street crisis. “It’s my proposal. It’s not Senator Obama’s proposal; it’s not President Bush’s proposal,” he said firmly with a scowl, squinting in the lights.

From that first question in the debate moderated by NBC’s Tom Brokaw, Mr. McCain was eager for a fight, jumping off his stool to prowl the stage and handle the questions, which came from some of the 80 “undecided” voters selected by polling group Gallup. Mr. Obama soon followed his lead.

The two nominees, who have been engaged in increasingly personal attacks this week as the campaign has begun to trend toward the Democrat, also clashed on foreign policy.

In one pointed exchange, Mr. Obama bluntly challenged Mr. 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.”

Mr. McCain targeted his rival’s lack of experience, saying Mr. Obama foolishly threatening to invade Pakistan and said, “I’m not going to telegraph my punches, which is what Senator Obama did.” He also said Mr. Obama has declared he would speak directly with leaders of rogue nations, like Iran, dismissing that stance as naive.

The Democrat struck back, but Mr. McCain got the last word.

“Now, Senator McCain suggests that somehow, you know, I’m green behind the ears and I’m just spouting off, and he’s somber and responsible,” Mr. Obama said, pausing.

“Thank you very much,” Mr. McCain said, drawing a laugh from the crowd. He explained that when he sang the words “bomb, bomb Iran” to the tune of the Beach Boys “Barbara Ann,”

“I was joking with a veteran —I hate to even go into this. I was joking with an old veteran friend, who joked with me, about Iran.”

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