McCain offers tough love on housing woes
While Hillary Clinton and others are offering government help for homeowners facing foreclosure, John McCain is more about tough love.
The presumptive Republican nominee, in a speech today in Santa Ana, Calif., blames the housing and credit crisis on a "bubble" created by lenders who lowered their standards, Americans who bought homes they couldn't afford, and financial players who invested in complex securities that were not transparent.
Saying he's offering more trademark "straight talk," McCain said he "will not play election year politics." Nor will he support any help to speculators or to people who got in over their head by buying second homes.
"I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers," he said. "Government assistance to the banking system should be based on solely preventing systemic risk that would endanger the entire financial system and the economy.
"In our effort to help deserving homeowners, no assistance should be given to speculators," McCain continued. "Any assistance for borrowers should be focused solely on homeowners, not people who bought houses for speculative purposes, to rent or as second homes. Any assistance must be temporary and must not reward people who were irresponsible at the expense of those who weren’t."
He then called for homeowners to be required to put down payments on homes, for lenders to raise standards, and for all those involved to move to more transparency. The nation's top accounting professionals should offer new rules, and the nation's top mortgage lenders should convene to figure out how to help credit-worthy customers, he says.
McCain's approach is far more limited than those of Democrats such as Clinton, who on Monday proposed a $30 billion fund to help states and local governments stem foreclosures and their fallout on neighborhoods. The Democratic National Committee is already faulting McCain, saying he isn't offering any new proposals "to deal with the millions of struggling homeowners who played by the rules or the larger issues that local communities are facing in light of the crisis."
"Instead of offering a concrete plan to address the crisis at all levels, McCain promised to take the same hands off approach that President Bush used to lead us into this crisis," DNC chairman Howard Dean said in a statement.
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Yeah, That article didn't sound bias at all. That would be sarcasim for those of you how can't judge literary inflection. I'm not aguring that McCain's stance seems alittle harsh, but the world is a harsh place and I like the Idea that someone out there doesn't skirt away from the beliefs of personal responsiblity. I can understand the Democat's wanting to helping people, it just seems that the help they wish to provide help is always in the form of a handout policy instead of a hand-up policy. Yes I know that that sounds like retoric, but that is the best way I could come up with to express my point of view.
On a side note, although I do like the idea of personal responisblity in this situation, what is McCain's plan for curbing the irresponisblity of the these speculators?
Wow, a politician calling for accountability by individuals AND corporations? I'm glad I was sitting down!
Tough Love, this is what I have been saying for ever, I was careful when buying a home, as to not get in "over my head" so I wont be needing any assistance, maybe I should re-think thinkgs, and go get in over my head, so the Gov't will dig me out of my hole, LOL!
Right on! Our forefathers are rolling in their graves everytime they hear "federal government bailout". That's not what the federal government is for...
Take responsibility.
What a novel concept.
I think I agree with him.
Someone is actually taking the right approach for once. Both parties (lenders and borrowers) are at fault and should not be bailed out by the government. Shame on the lenders for giving loans to people without even knowing if they can repay the loan. I feel a little more sympathy for people who were brainwashed into thinking they could afford these loans but common how can you buy a house with no job and no downpayment. Forget about the investors who lost their shirts investing in subprime loans, they are the reason for this fiasco along with the government not regulating the mortgage industry properly.
Let them all learn their lessons
Why does anyone think Howard Dean is relevant? Another example of stupid politics (election year or otherwise)
Finally, a politician who is not catering to the lowest common denominator. Who is actually willing to tell us what we all know is the truth. This is what I'm looking for. I think it's called character. Who knows, maybe we can be great again.
Anyone wondering just what kind of leader we'll get in John McCain, need only check Wikipedia's entry for Herbert Hoover - - Stubborn, uncompromising, unable to get-along with other politicians, catering to special interests, promoting de-regulation & economic policies which led to rampant speculation & eventual stock market collapseÉ
Wow. This is good, someone with integrity and backbone. This is the right approach. What we needs are tougher regulations, like bigger down payment(20%), and reasonable mortgage to income ratio.
Giving money to the irresponsible is not the solution.
Clinton, listen! If people cannot afford their house, they should rent! Renting is not a federal crime, is it? For those, that have cashed out huge home equity and squander it all, they deserve to be foreclose. People has to be responsible for their own action.
I can't believe that anyone is even considering NOT voting for McCain given the other two alternatives... Good luck...
The truth , you can't handle the true, welfare for the rich and the hell with everyone else. The republicans keep trying to convince you that your in that group, and unless you make 250k forget it. No regulations and when was the last banking melt down and bail out of wall street.
Other countries are full of laughter.
They don't pay for defense, get more holidays, get health care, get university degrees. Oh and by the way, their currancy is worth more. This is the selling of America. Free the oil in Iraq for about 600 billion, and now that China is more capitialist we don't like them as they take the jobs, or did we like them better as Communists. Get used to it, untill we balance the budget, get out of war spending and get some sane regulations back your stuck with it. HUNKER DOWN
Let me guess, none of the people who agreed with this article live in an area where property values have been greatly affected by surrounding foreclosures. More proof of the Republicans not caring about the lower income people who struggle day to day.
McCain is Bush light. Why vote for someone who has said he believes in the policies, internationally and domestically, of the Bush administration. Our country is a mess. We have a huge budget deficit, we are in an unwinnable war, our dollar is worth crap, we are in a recession, the rich get richer and the rest of us get screwed, and yet there are still people who will vote republican. I don't get it. I am not a big backer of Hillary or Obama, but this country has to change and go into a new direction and McCain is the same old/same old.
It's nice to see personal responsible isn't entirely dead in this country.
Yeah, he's talking "straight" about the working people. How they brought homes they just couldn't afford and now they must pay the price. He should also talk straight on the war that we were misled on and why we are still there.
WOw I thought McCain was clueless on the economy. People who made a few years payments are NOT homeowners.His comments are spot on!!!
Hilllarys home gambler plan is everything that is wrong about government.
I may have to vote for McCain
Mike, what exactly does your comment have to do with McCain's ideas on the housing crisis?
Susan at 5:54PM...you're mixing up your tiny violins. This is not not an article about helping the urban or rural poor. This is a serious topic about the battle against the death of personal responsibility which will take down our society if it's allowed to happen. From what I can tell practically everyone who finds themself in dire housing straits has no one to blame but their own flawed thought processes.
This speech brought me over to the red side. I'm among the many Americans that did not make an obviously bad decision to buy or take out a HELOC during the housing bubble, and I'll be glad to buy a house as soon as the price makes sense. In my opinion, we can't get back to reasonable prices fast enough, and this BS about using my tax dollars to bail out the irresponsible and the reckless, in order to keep bloated prices propped up, well that's enough to make up my mind. I've hated the GOP with a passion for the last 7 years, but it looks like I'll be rooting for McCain this year.