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McCain pledges homeowner help; Obama blames Bush policies

Seeks to buy up bad mortgages; Obama blames Bush for crisis

By Joseph Curl (Contact) | Wednesday, October 8, 2008

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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."