The economy took center stage in the Nashville debate between Sens. Barack Obama and John McCain -- but early returns concede the night to no one.

Uncut: Debate | Who Won? | Slideshow | Highlights

"It's my proposal. It's not Sen. Obama's proposal," McCain said at the outset of a debate he hoped could revive his fortunes in a presidential race trending toward his rival.

Democrat Obama said the current crisis was the "final verdict on the failed economic policies of the last eight years" that President George W. Bush pursued and were "supported by Sen. McCain."

He contended that Bush, McCain and others had favored deregulation of the financial industry, predicting that would "let markets run wild and prosperity would rain down on all of us. It didn't happen."

The debate was the second of three between the two major party rivals, and the only one to feature a format in which voters posed questions to the candidates.

"It's good to be with you at a town hall meeting," McCain jabbed at his rival, who spurned the Republican's calls for numerous such joint appearances across the fall campaign.

They debated on a stage at Belmont University in a race that has lately favored Obama, both in national polls and in surveys in pivotal battleground states.

The audience was selected by Gallup, the polling organization, and was split three ways among voters leaning toward McCain, those leaning toward Obama and those undecided.

Tom Brokaw of NBC, the moderator, screened their questions and also chose others that had been submitted online.

The two men also competed to demonstrate their qualifications as reformers at a time voters are clamoring for change.

McCain accused Obama of being the Senate's second-highest recipient of donations from individuals at Fannie Mae and Freddie Mac, the two now-disgraced mortgage industry giants.

"There were some of us who stood up against this," McCain said of the lead-up to the financial crisis. "There wee others who took a hike."

Obama shot back that McCain's campaign manager, Rick Davis, has a stake in a Washington lobbying firm that received thousands of dollars a month from Freddie Mac until recently.

Pivoting quickly to show his concern with members of the audience listening from a few feet away, he said, "You're not interested in politicians pointing fingers. You're interested in the impact on you."

But that didn't stop the two men from criticizing one another repeatedly as the topics turned to energy, spending, taxes and health care.

Obama said McCain was going to require taxes on the health benefits workers receive from their employers at the same time his plan would wipe out the ability of states to enforce their own regulations to require tests such as mammograms.

McCain countered that under his rival's plan "Sen. Obama will fine you" if parents fail to obtain coverage for their children but had yet to say what the fine would be. "Perhaps we will find that out tonight," he said.

Obama quickly followed up, saying that McCain "voted against the expansion" of the children's health care program the government runs.

The two men prefer dramatically different approaches to easing the problem of millions of uninsured Americans. McCain favors a $5,000 tax credit that he says would allow families to find and afford health care on their own.

Obama wants to build on the current system, in which millions receive coverage through the workplace, with government funding to help uninsured families obtain coverage.

McCain's pledge to have the government help individual homeowners avoid foreclosure went considerably beyond the $700 billion bailout that recently cleared Congress.

"I would order the secretary of the Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes at the diminished value of those homes and let people be able to make those payments and stay in their homes," he said.

In an unusual step, McCain announced the additional $300 billion plan during the debate. He said the loans would be replaced with fixed-rate mortgages, ostensibly at a loss to the government.

"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, and we've got to get some trust and confidence back to America."

McCain also said it was important to reform the giant benefit programs such as Medicare, Medicaid and Social Security.

"My friends, we are not going to be able to provide the same benefit for present-day workers that present-day retirees have today," he said, although he did not elaborate.

Exchanges between the candidates have grown ever more acerbic with just four weeks to go until Election Day. McCain is behind in the polls and Election Day is less than a month away.

McCain referring to Obama as "that one" ignited the blogosphere and even prompted response from both camps. (Read Story)

The latest nationwide Rasmussen poll shows Obama with a 52-44 percent lead over McCain. A George Washington University poll gave Obama a 50-43 percent edge. And the latest Gallup survey shows Obama leading 50-44 percent. The GOP ticket is also trailing in states that until a few weeks ago were considered battlegrounds. (Watch Video)

Viewers: No Knockout Blows

Whichever candidate they back, Americans who watched Tuesday night's debate seem to agree there were no knockout blows.

Some praised Obama's "vision," while others were impressed with McCain's promise of victory in Iraq.

Across the country, voters gathered in school lounges, restaurants, bars and their homes to watch the debate at Belmont University in Nashville, Tenn.

The debate did change some minds. One longtime Republican in the swing state of Ohio said Obama's performance was enough to push him into the Democrat's column.

Others are sticking with their earlier choice. Mike Kiepke and his wife, Judy, were among a crowd of about 50 patrons gathered at Tom's Tavern in downtown Phoenix, Ariz., cheering on McCain.

It also depended on where people were. McCain was far less popular among a young happy-hour crowd at The 500 Club, a storied Mission district watering hole in San Francisco, where Obama was the clear favorite.

Early, knee-jerk polls had Obama with anywhere from a slight to a massive lead.

The candidates' third and last debate will be Oct. 15 at Hofstra University in Hempsted, N.Y.

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