KEY POINTS:
3.38pm: The debate is over and the wives come onto the stage. The CNN experts are giving the debate to McCain but say he ruined it for himself by going too negative in the second half of the debate. But one expert says McCain will lose points just because of an unfavourable on screen appearance. The experts agree Obama was too passive during the debate.
3.28pm: The debate is nearly over. McCain asks the people to judge him on his record and his proposals for the future. He says he's come from a long line of McCain's who have served and he would be proud to serve the American people again.
Obama responds, saying it's time for a new direction. He reiterates his stance on education, energy, healthcare and the economy. He says he wants to invest in the American people. He says he will work "tirelessly" every second he is in office for the American people.
3.22pm: The candidates are being quizzed on the best way forward for education.
Obama calls for "an army of new teachers", with higher pay and better training, especially in maths and science. He also offers a $4000 credit for any student going to college, and calls on parents to turn off the TV and video games at home.
McCain calls for more choice in schools, especially in poorer areas where the only option for their children is "a failed school".
3.10pm: The two candidates have become bogged down in healthcare policy. McCain wants a $5000 credit given to American families to sort out their own healthcare. Obama favours state control of health insurance, but says his way will make it cheaper for the American people. It's interesting that there's been no shouting or over talking during this debate. It's very serene and polite.
2.53pm: Obama says, under his watch, America will be able to stop importing oil from the Middle East and Venezuela within a decade. He says sourcing home-grown oil is the biggest issue facing the American economy going forward.
2.47pm: Both candidates are asked if their running mates are ready to take charge. Obama says he has confidence in Joe Biden, but this question is all about Palin. McCain calls Palin "a reformer", calling her an expert in special needs and "a breath of fresh air". He steers away from specifics.
Obama is asked about Palin and is diplomatic, saying she has unified the Republican Party but leaving it to the American people to decide if she is ready to take charge.
2.43pm: Obama says Republicans have helped refine his foreign policy and one of his advisers is a Republican. In comparison to the second debate, Obama's answers are far more succinct tonight.
2.34pm: Obama is on the front foot now, telling McCain he's sorry for confusing McCain's policies with George Bush's. But he says on all the key issues - tax, spending and energy - McCain policies are almost identical to Bush. Obama is making a big effort to link McCain with Bush.
On the question of leadership McCain admonishes Obama for not "repudiating" unfair attacks by fellow Democrats on Sarah Palin.
Obama is staying cool under the attack and diverts the topic, saying "we" need to be focusing on the issues, not personal attacks.
McCain comes again, saying the Obama campaign has spent more money than any campaign "since Watergate". McCain points to constant TV advertising attacking his policies. He's trying to pin Obama as a negative campaigner.
Obama brings up Sarah Palin's terrorist remark in response.
2.22pm: McCain has moved on to energy. He wants to build more nuclear power plants and invest in renewable energy saving, he says, $700b in year in off-shore fuel costs. He says this strategy will create "thousands of jobs".
Both delegates are being asked how they'll balance the budget. Obama points out America's national debt has doubled under the Bush administration. Obama says America cannot financially afford to follow the same policies in the future.
2.10pm: They are underway. McCain begins with his quick fix for the economy. Focus on the mortgage crisis, says McCain. He wants $300b of the $700b rescue package used to help families in strife because of failed banks and financial companies.
Obama is more specific. He wants a tax cut for all families earning less $200,000 a year. He also wants to focus on job creation, giving a tax credit to all companies who create new jobs. And, like McCain, he wants to bail out families in mortgage strife.
2.05pm: Welcome to this live updates blog of the third and final US presidential debate between Republican candidate John McCain and the Democrat's Barack Obama.
The debate, from Hofstra University in Long Island, New York, is McCain's last real chance to bridge the poll deficit which has grown to 14 per cent in a poll by CBS News and The New York Times this week.
The debate takes place less than three weeks before the election and will focus on domestic policy.
