Debate wrap-up: Who made the grade?

In the second of three debates between Sen. Barack Obama and Sen. John McCain, the rules of the town-hall format were established ... and quickly tossed out the window. As audience members put forth questions, culled by moderator Tom Brokaw, the candidates roamed the stage and picked apart each other's campaign promises.

Both candidates seemed comfortable in the setting and answered questions directly to the audience. But both also seemed frustrated, Obama especially, with the lack of follow-up questions and the chance to defend their positions. Eventually, Brokaw relented and allowed a few clarifications.

As expected, the economy dominated nearly the first half of the debate. Audience member questions focused on how the $700 billion bailout plan would help American people and what kind of sacrifices they would be asked to make to help the economy get back on track.

Obama called our current situation the worst finanacial crisis since the Great Depression and made numerous references to the middle class. He slammed golden parachutes for CEOs and argued that his tax cuts and plan to pay back the bailout loan would help. McCain also focused his answer on the middle class saying "Americans are angry, they're upset, and they're a little fearful."

While both candidates took plenty of shots at one another's policies, they also admitted that there was plenty of blame to go around. "No one is innocent here," Obama argued, saying both parties were to blame for the current economic crisis. Obama went on to say that "when George Bush came into office we had a surplus. Our national debt has almost doubled."

McCain and Obama both agreed that sacrifice, by both Washington and regular Americans, will be necessary. "Spending is going to have to be cut in America,." McCain said, even mentioning a possible "spending freeze" on most programs excluding military, veterans' services, and other vital projects.

The first foreign policy question of tonight's debate tied foreign policy to the current economy crisis: How will recent economic distress affect U.S. ability to be a peacemaker?

"We are a nation of good," said McCain. He continued: "The U.S. needs to know when to go in, when not." McCain then went on the offensive, saying Obama was wrong about Iraq and the surge. Obama "does not understand our national security problems. We don't have time for on-the-job training."

Obama replied, "It's true, I don't understand. I don't understand how we ended up invading a country that had nothing to do with 9/11. Iraq has put an enormous strain on our troops, on our budget."

The last question of the night focused on the future. "What don't you know ... and how will you learn it?" Obama went for some last-minute laughs and said his wife Michelle, in attendance, would have plenty of answers for that. He said he wanted to pass on the American dream to future generations and emphasized "fundamental change" was the reason he should be the next president.

McCain said what he doesn't know is what everyone doesn't know -- what's going to happen around the world. He mentioned his military service and that he knew what it felt like to rely on hope and other people for support. "The great honor of my life has always been putting my country first."