McCain, Obama debate economy, bailout and Iraq

In one of the most eagerly awaited presidential debates ever, the candidates took 90 minutes out from the Washington wrangling over a $700 billion financial bailout of Wall Street to get into the ring for the first of three slugfests, nydailymail.com reported.

The agenda was supposed to be foreign affairs, but against the frightening backdrop of the Wall Street meltdown, the first 40 minutes were dominated by each other's claim that only they can restore the nation's financial sanity.

OBAMA AND McCAIN: KEYS TO THE DEBATE

Obama struck first - it took him less than two minutes - laying the blame for the current economic mess squarely on the door of Washington's Republican leadership.

"This is a final verdict on eight years of failed economic policies promoted by George Bush [and] supported by John McCain," Obama said.

McCain - who had pledged to skip the debate unless lawmakers could agree on a Wall Street bail-out plan, a position he reversed only Friday morning - tried to strike a more bipartisan note on the economy.

"We are seeing for the first time in a long time Republicans and Democrats together, sitting down, trying to work out a solution to this fiscal crisis we're in," the Arizona senator said.

Neither candidate flatly committed themselves to a bailout plan, but voiced belief a deal would be reached.

"I am optimistic," said Obama.

"I hope so, and I believe so," said McCain.

There were no knockout punches and no major gaffes as each side seemed focused mostly on getting across their main talking points, often with direct lifts from their daily stump speeches.

For McCain, that meant casting himself as the race's tax-cutting elder statesmen - and Obama as its naive, liberal upstart, especially in foreign affairs, an area that McCain said at least eight times that Obama doesn't understand or "get."

"There are some advantages to experience and knowledge and judgment," the 72-year-old McCain said at one point. "And I honestly don't believe that Sen. Obama has the knowledge or experience" to serve as commander in chief.

For Obama, the goal was to position himself as the fresh face who can not only deliver a large middle class tax cut but also stand on the same stage as McCain when it comes to projecting an aura of confidence and competence abroad.