Obama slams McCain on housing crisis

As John McCain hammers Barack Obama daily on foreign policy, the Democrat is returning the favor on domestic issues.

In a speech this afternoon in Las Vegas -- a fast-growing city hit particularly hard by the foreclosure crisis -- Obama seeks to link the presumptive Republican nominee to what he calls the "disastrous" economic policies of President Bush.

"Here in Nevada, the foreclosure rate is over three and a half times the national average. Here in Las Vegas, one out of every 44 households is facing foreclosure," Obama says, according to prepared remarks provided by his campaign. "As so many Americans walk away from their homes, millions more have seen their home values plunge, which only puts our economy into a deeper hole."

Obama says that President Bush offered a housing plan that was "too little, too late," and McCain's plan "amounts to little more than borrowing bad ideas from George Bush."

"We’ve had enough of the can’t-do, won’t do, won’t even try approach from George Bush and John McCain," Obama says.

Obama says besides a $10 billion fund to aid homeowners, he supports a plan offered by Senator Chris Dodd of Connecticut and Representative Barney Frank of Massachusetts to create a new Federal Housing Administration program to encourage lenders to buy or refinance existing mortgages, and to convert them into stable 30-year fixed mortgages.

"This is not a windfall for borrowers -- as they have to share any capital gain," Obama says in the prepared remarks. "It’s not a bailout for lenders or investors who gambled recklessly – as they will take losses. It asks both sides to sacrifice. It offers a responsible and fair way to help Americans who are facing foreclosure to keep their homes at rates they can afford."

Democratic rival Hillary Clinton issued a statement echoing Obama's criticisms of McCain and the president and lending her support to the Dodd-Frank legislation.

Clinton also pointed out that she has called for action for more than a year, including proposals for a voluntary moratorium on subprime foreclosures and a freeze on subprime mortgage interest rates for at least five years.

"And I believe we should immediately pass a second stimulus package with at least $30 billion in emergency funds to help states and localities fight foreclosures in their communities," she said in her statement. "As president, I will work to ensure that these provisions become law, and that our government is fighting just as hard to help struggling homeowners as we are to help struggling Wall Street banks."

UPDATE: Blair Latoff, a spokeswoman for the Republican National Committee, responded to the Democrats' criticism of McCain: “Barack Obama is quick to make big promises to homeowners and attack John McCain for not attempting to outbid him, but his pandering politics have been panned by critics and demonstrate a fundamental misunderstanding of the housing crisis. Unfortunately, Barack Obama’s attacks on John McCain are more focused on his short-term political gain than the long-term condition of the housing market.”