Palin didn't win debate, but didn't lose either

The two sparred over taxes, energy policy and the Iraq war, with Palin trying to recover her image as a feisty reformer after recent fumbling TV interviews left the public wondering if she was up to a national job.

Biden, a seasoned U.S. senator, largely avoided attacking the Alaska governor directly and, instead, went after her running mate, John McCain, as promising more of the same failed policies as Republican President George W. Bush.

"I think things went very well last night," Palin said Friday as she flew to Texas for a fundraiser. "It was energizing and I was happy to have had the opportunity."

It remained unclear whether the debate Thursday at Washington University would have a lasting impact on the campaigns of McCain and Democratic challenger Barack Obama.

McCain has been slipping in the polls during particularly trying times for Republicans, who were largely blamed for the House of Representatives' rejection of the Bush administration's $700 billion plan to rescue the teetering American financial system. Palin's shaky performances in recent television interviews also added to the pressure.

Two quick polls indicated that Biden fared better in viewers' minds than Palin in the debate. A CBS News/Knowledge Networks Poll found that 46 percent of uncommitted voters who watched the debate thought Biden won, with 21 percent siding with Palin. A CNN poll found respondents judging Biden the winner by a margin of 51 percent to 36 percent but calling Palin more likable by 54 percent to Biden's 36 percent.

Still, Palin couldn't be considered a loser, said Todd Harris, who worked on McCain's 2000 presidential campaign and advised actor politician Fred Thompson's bid for the Republican nomination this year.

"Her performance had unlimited downside potential but probably has a limited upside," Harris said. "I doubt that this will change the dynamics of the race, but it certainly might help stop some of the bleeding."

The focus of both campaigns on Friday turned to the U.S. economy, which has been struggling with a financial crisis brought on by collapse of the housing market and an increasingly tight credit markets.

The House was expected to take up a $700 billion financial rescue package on Friday. It rejected the measure on Monday, sending global stock markets into a tailspin, but is reconsidering a revised proposal approved by the Senate on Wednesday. Among those voting "yes" were Sens. Obama, McCain and Biden.

Adding a sense of urgency Friday was the Labor Department's report that employers cut payrolls by 159,000 in September, the most in more than five years.

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