>> voters now have just two weeks to make up their minds, and abc's terry moran takes a look at the last debate as we head into the homestretch. [ applause ] [cheers and applause] >> reporter: the two men who would be president squared off for the last time. leadership, the real issue in every presidential debate. and president obama launched a direct attack on whether mitt romney is ready to be leader of the free world. >> here's one thing i've learned as commander in chief. you've got to be clear, both to our allies and our enemies about where you stand. >> reporter: romney said obama is simply not demonstrating presidential leadership. >> attacking me is not talking about how we are going to deal with the challenges in the middle east. >> reporter: romney accused the president of undermining american strength by not spending enough on defense. >> our navy is smaller now than any time since 1917. the navy said they needed 313 ships to carry out their mission. we're now under 285. >> reporter: obama brusquely