Democratic Presidential candidate Barack Obama [Images], riding on the lead given by pollsters a few days ago, took on his Republican rival John McCain [Images] in the second of three presidential debates in Belmont University, Nashville.

Coverage: US Elections 2008

Taking up from where they left off in the first presidential debate, the two senators deliberated on issues ranging from economy to tax breaks to foreign policy -- often taking potshots at each other to ample measure.

Economic Crisis
The struggling US economy once again dominated the presidential debate. Assuring voters, Obama said: 'The middle class need a rescue package and that means tax cuts for the middle class. I believe this (the current financial crisis) is a final verdict on the failed economic policies of the last eight years, strongly promoted by President Bush and supported by Senator McCain."

Why the US presidential debates are crucial

In his counter, McCain announced plans for a federal bailout of Americans on the verge of losing their homes. "Americans are angry. They are upset and they are a little fearful. It's our job to fix the problem. It is expensive, yes. But until we stabilize home values in America we are never going to start turning around," the Republican said.

Iraq & war on terror
In a debate already volatile after the discussion on the economic bailout, the issue of the war on terror took matters to a new level with both candidates passing snide remarks about the other's approach.

While promising to 'talk softly, but carry a big stick' as President, McCain slammed Obama for issuing statements like carrying out air strikes inside Pakistan to kill terrorists.

"Senator Obama was wrong about Iraq and the surge. In his short career, he does not understand our national security challenges. We don't have time for on the job training. My hero is a guy named Teddy Roosevelt. Teddy Roosevelt used to say walk softly, talk softly, but carry a big stick. Senator Obama likes to talk loudly," he said.

Obama shot back, saying, "It's true. There are some things I don't understand. I don't understand how we ended up invading a country (Iraq) that had nothing to do with 9/11. That was Senator McCain's judgment, and it was the wrong judgment."

"Senator McCain suggests that somehow, you know, I am green behind the ears and, you know, I am just spouting off, and he is sombre and responsible. This is the guy who sang, 'Bomb, bomb, bomb Iran'; who called for the annihilation of North Korea. That I don't think is an example of "speaking softly."

Relations with Russia [Images]
Unlike the first presidential debate where both Obama and McCain openly lambasted Russia for its occupation of Georgia, the second debate saw a somewhat relaxed approach from the duo.

When debate moderator Tom Brokaw sought to know whether Russia had once again turned into an 'Evil Empire', McCain, in a guarded response, said: "May be".

"If I say yes, then that means that we're reigniting the old Cold War. If I say no, it ignores their behaviour," he said further.

Obama, on the other hand continued from what he had said in Oxford, Mississippi. He said, "I think that it is important that we understand they are not the old Soviet Union, but they still have nationalist impulses that I think are very dangerous."

Image: Obama speaks during the Town Hall Presidential Debate with McCain at Belmont University's Curb Event Centre in Nashville, Tennessee. The debate was the second presidential debate of three, the only one being held in the town hall style with questions coming from audience members.
Photograph: Justin Sullivan/Getty Images