Obama and McCain clash over economy

By Caren Bohan

CHILLICOTHE, Ohio (Reuters) - On a day of fresh economic turmoil, Democratic presidential nominee Barack Obama accused Republican John McCain Friday of trying to divide Americans and McCain said Obama was dodging legitimate issues.

But McCain -- urged by a voter to be tough on Obama at the next debate -- veered from attacks on his rival to praise the Illinois senator as someone he admired and considered decent.

Campaigning in battleground states key to the November 4 election, both candidates offered proposals to try to ease the strain on Americans from a market meltdown that has cost investment portfolios billions of dollars.

Obama, campaigning in Ohio, called for a plan to help small businesses hampered by the U.S. credit crunch to get the loans they need for operating expenses and payrolls. He urged global finance ministers meeting in Washington this week to take coordinated steps to address the financial crisis.

"In this global economy, financial markets have no boundaries. So the current crisis demands a global response," said Obama, who leads McCain in opinion polls with 25 days until the election.

McCain called in Wisconsin for steps to protect older investors from rules that require them to begin selling off stocks from their IRA and 401(k) retirement portfolios when they reach 70 1/2 years old.

"To spare investors from being forced to sell their stocks at just the time when the markets are hurting the most, those rules should be suspended," the Arizona senator said.

Tensions simmered between the two camps.