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He has to go all in now on attacking Obama directly. As the economy continues to tank, he knows that he is tied to it directly through Phil Gramm and before that, through Keating. The Keating video Obama released today is killer and it will finish off McCain if enough people see it. Only by changing the topic to direct personal attacks can he get attention away from the economy. As Glenn stated, this approach is likely to backfire in a big way.
One way it will backfire is through the unprecedented involvement of young people in this election. Gallup just released a poll today on 18-29 year olds and they have been paying a lot of attention. They see this election as possibly the most important in a generation and they are choosing Obama by about two to one. I wrote an Oxdown Gazette diary about the poll today. It is linked at my name.