Sadly, Mostly True

The news clip featured in the ad also begs for explanation. It suggests that Obama is pushing friendly law enforcement officials to prosecute the McCain campaign for running false ads. The anchor was introducing a news report that quoted two local prosecutors who are part of an Obama-Biden "truth squad" in the state. The TV reporter said that "they ... say they plan to respond immediately to any ads and statement that might violate Missouri ethics laws." That stirred up a strong reaction from Republicans who objected to what they called intimidation, after which one of the prosecutors who was quoted denied any intent to bring official charges. Jennifer Joyce, St. Louis circuit attorney, issued a statement saying "my sole purpose in participating in this initiative is about getting truthful information to the voters. This has never been or never will be about prosecuting people." In any case, as we noted in a 2004 article, the First Amendment makes the rare state laws against false political claims all but impossible to enforce.

Obama-Biden Ad: "The Subject"
Announcer:  He's out of ideas. Out of touch. And running out of time.
But with no plan to lift our economy up, John McCain wants to tear Barack Obama down.
With smears that have been proven false.
Why? McCain's own campaign admits that if the election is about the economy, he's going to lose.
But as Americans lose their jobs, homes and savings, it's time for a President who'll change the economy.
Not change the subject.
Obama:I'm Barack Obama and I approved this message."Smears"

The Obama ad responds more generally, saying McCain has resorted to "smears" because "his own campaign admits that if the election is about the economy, he's going to lose."

It is true that McCain began sinking in the polls, and Obama began rising, about the time the Bush administration sought a $700 billion rescue package from Congress amid widespread talk of a financial crisis and possible looming recession. The ad also cites a New York Daily News report from Oct. 5 that quoted an unnamed "top McCain strategist" on the reason that the McCain campaign was attacking Obama's personal character:

New York Daily News, Oct. 5: McCain's course correction reflects a growing case of nerves within his high command as the electoral map has shifted significantly in Obama's favor in the past two weeks.

"It's a dangerous road, but we have no choice," a top McCain strategist told the Daily News. "If we keep talking about the economic crisis, we're going to lose."

Appearing on screen are the words "A deliberate attempt to smear Obama," attributed to The Associated Press, and the word "false," credited to a CNN report. Though the ad does not mention it, both reports refer to the claim by McCain's running mate, Alaska Gov. Sarah Palin, that Obama is "palling around with terrorists who would target their own country," a reference to William Ayers, a Chicago professor of education, who in the 1960s was part of a radical antiwar group that set off pipe bombs in lavatories in the U.S. Capitol and the Pentagon.

Of Palin's charge, CNN concluded:

CNN Fact Check, Oct. 5: False. There is no indication that Ayers and Obama are now "palling around," or that they have had an ongoing relationship in the past three years. Also, there is nothing to suggest that Ayers is now involved in terrorist activity or that other Obama associates are.

That's consistent with what we found back on April 17, after Sen. Hillary Clinton brought up Ayers and his past during a Democratic debate.