Sen. Barack Obama today assailed President Bush over the credit crisis, charging that administration policy was "so divorced from the reality facing the American people and the American economy that it would be laughable if it weren't so frightening."

The Democratic presidential candidate offered his statement on the economy after a town meeting this morning at Community College of Beaver County.

Mr. Obama said Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson had taken appropriate actions in addressing the burgeoning problem but said that the president's past action had helped set the stage for it.

"History will not judge President Bush kindly for his failure to act in a way that could've prevented or alleviated this economic crisis," he said.

"There have been few administrations so out of touch with the concerns and the struggles of working Americans and so beholden to the lobbyists and special interests who blocked any kind of regulatory oversight of the financial sector. Whether it was sub-prime lending, credit cards, or bankruptcy laws, Washington has allowed these special interests to prevent sensible policy that could have prevented the most serious effects of the current predicament.''

In remarks opening the town hall meeting, Mr. Obama also responded to new criticisms from Sen. Hillary Rodham Clinton over his position on the Iraq war. In a speech today in Washington, D.C., Mrs. Clinton had reiterated her contention that Mr. Obama had not acted consistently or effectively concerning the war after a 2002 speech stating his initial opposition.

Mr. Obama defended his record on the war and returned to his ritual denunciation of Mrs. Clinton for voting to authorize the use of force in Iraq.

Mr. Obama was greeted at the Beaver County event by U.S. Rep. Jason Altmire of McCandless, one of the much-courted super delegates to the Democratic National Convention. Mr. Altmire said he was there to listen and didn't plan to make an endorsement in the race at least until after the Pennsylvania primary April 22.

It was Mr. Obama's first campaign appearance in Western Pennsylvania. The Illinois senator spoke to a sold-out crowd of more than 1,000 people -- mostly students and retirees -- gathered at the community college in Monaca.

The town hall meeting lasted a little under an hour. After his brief introductory speech reiterating his campaign's main message of change, Sen. Obama took questions on health care, veterans' benefits and financial aid for college. The issues of health care and the Iraq War seemed to be the top ones to audience members, many of whom identified themselves as undecided. There were also Republicans and Independents in the crowd.

Bill Painter, 21, who heads Students for Obama at Slippery Rock University, said he liked what the senator had to say about the Iraq War, adding he feels that Mrs. Clinton's position on Iraq and foreign policy is too hawkish for him.

"She seems to be saying things so she'll get elected," he said, "but Obama has been consistent all along."

Rebecca Schepis, 47, of Sharpsburg, said she was impressed by Sen. Obama's "honesty and substance," but added that she would still vote for Mrs. Clinton, in part because she believed that the country is ready for a woman president.

More details in tomorrow's Pittsburgh Post-Gazette.