Crisis derails John McCain's fightback

The American presidential hopefuls John McCain and Barack Obama were reeling last night and uncertain how to respond to the US economic crisis after Congress scuppered the $700bn (£388bn) bailout bill that both candidates had backed.

As the election campaign was again reduced to a sideshow, both men urged the Democrats and Republicans to reach agreement, repeating an appeal that had already fallen on deaf ears. Mr Obama delayed his appearance at a high school in Denver for an hour as he followed the drama unfolding in Washington and the subsequent stock market plunge.

"One of the messages I have to Congress is, 'Get this done'," said the Illinois Senator when he finally emerged. "Democrats, Republicans step up to the plate and get this done." He had clearly not been expecting the defiance on Capitol Hill. His prepared speech had already been distributed, saying: "Today, Democrats and Republicans in Washington have agreed on an emergency rescue plan that is our best and only way to prevent an economic catastrophe."

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However, it may be Mr McCain, the Republican nominee, whose campaign is in greatest peril following his extraordinary gamble last week to suspend his campaign to thrust himself into the delicate negotiations about the financial crisis.

Republicans in the House ignored him yesterday, just as they ignored George Bush's appeal to pass the legislation. Many are more concerned about losing their seats in the November polls, as evidenced by just eight of the 38 lawmakers from swing states voting for the bailout.

Mr McCain lashed out at the Democrats, saying: "Senator Obama and his allies have used unnecessary partisanship... Now it's time for all members of Congress to go back to the drawing board. I call on Congress to get back immediately to address this crisis. The challenges facing our economy could have a grave impact on every American worker... if our leaders fail to act."

But a worsening economic climate in the five weeks to election day, promises more trouble for Mr McCain with his links to the Bush administration.

The shock vote distracted Mr McCain from desperate efforts to rehabilitate his vice-presidential running-mate Sarah Palin last night after much pilloried prime-time interviews left her open to accusations that she is now a liability for the Republican White House campaign.

The McCain fightback began with his first joint interview with Mrs Palin with the CBS News anchorwoman, Katie Couric, hoping that his forceful presence alongside his inexperienced running-mate will blot out the memory of a TV interview she did with Couric last week.

The woman hoping to become the first female vice-president offered excruciatingly poor answers on foreign policy and her understanding of the $700bn rescue plan.

One of Mr McCain's problems is that high-profile right-wing commentators are now attacking him for choosing an inexperienced running-mate who has not grown into the job. The best that columnists such as The New York Times's David Brooks could offer is that the Alaska governor brings something "fresh and telegenic" to the ticket. There was more damning commentary from The Washington Post's Carl Bernstein, who wrote: "No presidential nominee of either party in the last century has seemed so willing to endanger the country's security as McCain in his reckless choice of a running-mate."

And worse may be to come for Mrs Palin who faces the Democrat vice-presidential candidate, Joe Biden, in a debate on Thursday in St Louis.