Obama and McCain exchange blows over economy

By Careen Bohan

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

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.

Illinois Sen. Obama, 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. And 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.

Arizona Sen. McCain, in Wisconsin, called for steps to protect older investors from rules which 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," McCain said.

Tensions simmered between the two camps.

A day after McCain brought up Obama's ties to former left-wing radical William Ayers, Obama accused the McCain camp of launching "a barrage of nasty insinuations and attacks" and said he expected more in the days ahead.