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The facts aren't on his side but he's clearly better prepared and more focused than he was in the first two debates.
Obama is smiling too much while McCain is talking and it's distracting. He does better when he maintains a serious expression.
I think he's been all over the map. He keeps seeming to lose track of his argument and go back to this very finger-pointing strategy - "he wants to raise your taxes, he wants Joe the plumber to die in a ditch somewhere homeless and alone" - and not talking about his points. He's wandering a lot, tripping over his words. I'm actually sort of concerned for his health here. He looks a lot like the ranting guy in a pub, the guy who thinks the communists are to blame for everything.
... although not by name. Obama referenced the "palling around with terrorists" line which gave McCain the opening. If this were a boxing match, Obama just put down his guard and dared McCain to hit him.
"Look, John, I haven't made your past associations with Central American dictators and their death squads who murdered over 500,000 civilians and tortured millions more an issue in this campaign. While I find your support for these murderers and thugs thoroughly reprehensible, it was a long time ago and I don't think it is an accurate reflection of who you are today.
I feel much the same about Bill Ayers. Just has you did despicable things when I was a teenager, he did despicable things when I was just a boy. But that is not an accurate reflection of who he is today. Today he is a college professor who has been recognized for his civic service to the community. I don't know him well. We're not friends. But I have worked with him and found him to be a generous and intelligent man with much to offer. That is MY experience with him and that is how I judge him."
Bill Ayers said he didn't do enough to end the war, NOT that he didn't bomb enough.