NASHVILLE, Tenn. (NBC NEWS) - Senators Barack Obama and John McCain squared off Tuesday night on the economy, energy and foreign policy, with now less than four weeks until Election Day.

John McCain needed a standout performance, but the format seemed to help both of them.

They responded to questioners by name and tried to show empathy for struggling voters, especially on the economy.

Both candidates strode the stage in Nashville, energetic and eager to connect.

The first three voter questions were about money on a day global markets reeled from the credit crisis that started with bad U.S. home loans.

McCain proposed a bailout for homeowners.

"I would order the Secretary of the Treasury to immediately buy up the bad home loan mortgages in America," McCain said.

The price tag? $300 billion even as McCain pushed a freeze on federal spending, "except for Defense, Veterans Affairs and some other vital programs," McCain said.

Sen. Obama said "that's using a hatchet to cut the federal budget. I want to use a scalpel."

Barack Obama pushed his tax cut plan.

"I want to provide a tax cut for 95 percent of Americans, 95 percent," Obama said.

Sen. McCain rebutted "let's not raise taxes on anybody's my friends."

Both steered clear of the personal, no mention of Charles Keating or former 1960s radical Bill Ayers but each got in digs.

McCain used an energy bill to distance himself from President Bush.

"You know who voted for it? You might never know. That one," McCain said, pointing to Obama. "You know who voted against it? Me."

"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,'" Obama said of McCain.

McCain did connect with voters, making the most of the format, but in debate two the poll leader didn't falter.

So it wasn't the game-changer that polls show McCain needs. He and Sarah Palin campaign today in Ohio and Pennsylvania. Obama's in Indiana while Joe Biden is back on the campaign trail in Florida.