The Arizona senator equated Mr Obama's response to the financial turbulence rocking American and global markets with his initial opposition to the 'surge' of US troops into Iraq last year.'Whether it's a reversal in war, or an economic emergency, he reacts as a politician and not as a leader, seeking an advantage for himself instead of a solution for his country,' Mr McCain said.
Mr McCain told the National Guard Association that he had offered a plan to resolve the debt meltdown which triggered the crisis, while the Democratic presidential candidate had not.
'Senator Obama has declined to put forth a plan of his own. At a time of crisis, when leadership is needed, Senator Obama has simply not provided it,' Mr McCain said.
'We saw the same lack of leadership on Iraq. Because of the sacrifices and perseverance of all the troops ? active duty, Guard, and Reserve ? victory in Iraq is in sight.'
My opponent, Senator Obama, likes to say that the surge in Iraq was more successful than anyone could have predicted at the time.
'He said that the surge succeeded, 'beyond our wildest dreams' - that's his way of saying that it took him by surprise.'
Mr Obama said in an interview with Fox News earlier this month that the US escalation in Iraq had succeeded beyond anybody's 'wildest dreams' as Republicans credited the operation with quelling raging violence.
But he also argued that there still had not been sufficient political reconciliation in the US-occupied country, in the latest tussle over the war ahead of the November 4 election.
Mr McCain has repeatedly hammered Mr Obama for his initial opposition to the troop surge, of which he was an early and outspoken proponent but Mr Obama counters that the Republican was wrong to back the war in the first place.
'To this day Senator Obama still cannot bring himself to admit his own failure in judgment,' Mr McCain said.
'For a guy who talks so much about hope, he didn't hold out much hope for victory in Iraq. Instead, he commits the greatest error of insisting that even in hindsight, he would oppose the surge.'
Mr McCain's assault was the latest attempt to question Mr Obama's judgment to serve as commander in chief and a likely preview of arguments he will press home in their candidates' first debate clash on Friday.
Mr Obama earlier accused the Bush administration of dumping a 'staggering price tag' on taxpayers to bail out Wall Street but with no clear plan to rescue the economy and accused Mr McCain of contributing to the meltdown.
The Illinois senator said the crisis was an indictment of Mr Bush and Mr McCain's zeal for deregulation, and queried how his rival could argue 'with a straight face' that he was a maverick reformer.
Mr McCain however touted his 'comprehensive' plan to reform 'broken institutions' that allowed the financial crisis to develop. -- AFP