Thank you!

Thankfully, the focus of tonight's debate was on policy and no gloves came off. While a few jabs were thrown, we saw the better sides of the candidates rather than the worst in them. I would give tonight's debate a slight edge to Obama, although I think it was pretty even. By no means do I think this debate will have any impact on the current trends. While McCain did just fine, he didn't do enough to change the game.

However, I think both candidates have yet to realize the opportunity inherent in the financial mess. I think Obama does a far better job connecting with the issues most of us face, but I think the major opportunity lies in a larger plan to get things moving again. McCain may have come closest by offering something new tonight, namely the government buying mortgages and allowing people to keep their homes. As I mentioned in an earlier post, I thought this should have been a key element of the bailout package. In any case, it will be interesting to see how this idea plays out for McCain, especially as an ardent supporter of small government.

I also think part of the issue here is that no one really knows whats going on. The financial system might as well be the mythical Gordian knot. While Alexander the Great may have untied the knot by simply cutting it in two with a sword, I doubt such a simple solution exists for the current mess we're in. Moreover, any solution will likely be nuanced, complex, and detailed, something that simply does not fit with a campaign message.

I am interested to see what Obama comes up with on this. I do believe he has far more economic expertise than McCain. His 12 years at the University of Chicago, the home of Milton Friedman and the Chicago School of Economics, and the interactions he had with the economics department is a pretty big stick. What I especially like about Obama is that he supports the free market, yet with an understanding that it is not perfect, that it needs a referee. Moreover, I like his interest in using market solutions to solve market problems. I wish we'd here more about these, although they might just be too wonkish for the campaign trail. I highly recommend David Leonhardt's article, Obamanomics.

I was also surprised that McCain didn't get called out for the ridiculous amount of pork in the bailout bill. For someone so anti-pork that must have been a hard pill to swallow. But perhaps that is a double edged sword and is simply not worth the political risk for Obama to bring up, especially considering he voted for it too.

The big question is, what happens next? Will the next days be filled with discussions of policy or will we revisit ghosts of the past?

postscript: After writing this, insta-polls gave Obama the clear victory in tonight's debate.