Obama edges ahead of McCain in latest poll

UNITED STATES: BARACK OBAMA has regained the lead in a national poll as concern over the US economy and doubts about Republican…

UNITED STATES:BARACK OBAMA has regained the lead in a national poll as concern over the US economy and doubts about Republican running mate Sarah Palin have eroded support for John McCain.

A Reuters/Zogby poll published yesterday gives Mr Obama a two- point lead among likely voters with 47 per cent to Mr McCain's 45 per cent, reversing a five-point lead for the Republican in August.

Mr McCain still leads Mr Obama on the question of which candidate would best handle the economy, identified by half of voters as the most important issue in the election.

Mr Obama has narrowed the gap on the economy from nine points to two points and has drawn even with Mr McCain among independent voters.

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The economy remained at the centre of the campaign as both candidates gave a cautious welcome to the US government's decision to take control of insurance giant AIG. Mr Obama described the $89 billion (€62 billion) bailout as the final verdict on the economic philosophy of the Bush administration, urging that the plan should protect consumers rather than AIG's shareholders and management. "This crisis serves as a stark reminder of the failures of crony capitalism and an economic philosophy that sees any regulation at all as unwise and unnecessary," he added.

"It's a philosophy that lets Washington lobbyists shred consumer protections and distort our economy so it works for the special interests instead of working people; a philosophy that says we should give more and more to those with the most and hope that prosperity trickles down to the rest. Instead, the pain has trickled up - from the struggles of Main Street all the way up to the crises on Wall Street."

Mr McCain, who warned against any government bailout of AIG on Monday, said the authorities had no choice but to intervene.

"We should never again allow the United States to be in this position. We need strong and effective regulation, a return to job-creating growth and a restoration of ethics and the social contract between businesses and America," Mr McCain said.

"Important questions remain to be answered by Wall Street. Did executives mislead investors and regulators about the severity of the problem? We must investigate whether or not there was misrepresentation on part of the company executives. If there was, there must be penalties.

"We need to change the way Washington and Wall Street does business, and as president I will."