Palin says Obama friendly with terrorists - Reuters

COSTA MESA, Calif. (Reuters)- Republican vice presidential nominee Sarah Palin accused Democratic candidate Barack Obama on Saturday of "palling around with terrorists," marking a shift to a nastier tone in the White House race.

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The remark was dismissed by Obama as "gutter politics" but appeared to reflect an effort by Sen. John McCain's campaign to target Obama's judgment as the Illinois senator solidifies his national lead and gains an edge in vital battleground states a month before the November 4 election. It came shortly after McCain's campaign called Obama a liar and just days after both candidates urged Congress to set aside partisan politics to pass a $700 billion financial rescue package in a bid to revive credit markets.

Full Story: Palin says Obama friendly with terrorists - Reuters