Incensed by Republican advertisements critical of Senator Barack Obama, several current and former executives came forward to discuss the role that Rick Davis, Senator John McCain’s campaign manager and longtime adviser, played in helping Fannie Mae and Freddie Mac beat back regulatory challenges when he served as president of their advocacy group, the Homeownership Alliance, formed in the summer of 2000.

The candidates echoed each other in assessing the threat from the financial crisis as severe enough to warrant government intervention. But Senator John McCain said that he would press on with his plan to extend the Bush tax cuts and to cut others. Contrary to the warnings of fiscal analysts, he said he could still balance the federal budget, which was falling deeper into deficit even before the financial crisis, by the end of his first term.

“Congress will respond to the financial markets crisis by taking action this week in a bipartisan manner that will protect the taxpayers’ interests,” House Speaker Nancy Pelosi said. She added that the administration’s proposal did “not include the necessary safeguards. Democrats believe a responsible solution should include independent oversight, protections for homeowners and constraints on excessive executive compensation.”

Republican candidate John McCain faces the daunting task of trying to square his long history of advocating corporate and financial deregulation - the sort of loose controls many blame for the turmoil on Wall Street. Senator McCain now says more controls are needed to prevent a repeat of the turmoil that sent the stock market plunging, as he tries to recover from a damaging series of gaffes regarding the unfolding crisis.

The Bush administration’s proposal was stunning for its stark simplicity. It would raise the national debt ceiling to $11.3 trillion. And it would place no restrictions on the administration other than requiring semiannual reports to Congress, granting the Treasury secretary unprecedented power to buy and resell mortgage debt.

Propelled by discontent at Republican handling of the economy in light of the financial crisis, Senator Obama matched his record high of 50 percent in the latest Gallup daily tracking poll, against 44 percent for Senator McCain. Meanwhile, Mr. McCain tried to blame the turmoil on fraud at US mortgage giants Fannie Mae and Freddie Mac.

Kevin Rudd will use his visit to the United States to meet a variety of economic officials, which he believes will be crucial in helping Australia deal with the fallout from the US turmoil. The prime minister has come in for criticism for his decision to head off on the three-day visit when the Australian economy is on a rollercoaster of its own.

It turns out that the Republican enthusiasm for Sarah Palin is just as superficial as she is. They were so eager for someone to cheer for (because they really don’t like John McCain) that they dove face first into the Palin mirage. But, on the issues, even they worry about her.

After a week of economic turmoil and his damaging remark on Monday that “the fundamentals of our economy are strong” Senator McCain aggressively sought to regain his footing. Battling to distance himself from the Bush administration and blame for the economic instability, Mr. McCain also called for the firing of SEC chief Christopher Cox.

With the conventions of the two major parties just a month away, polls show that the economic slowdown is the issue most on the minds of Americans. Those surveys also indicate that voters have more confidence in Democrats than in Republicans to manage the downturn.