McCain Addresses Housing Crisis : No Pandering, Lenders called on to Help
McCain Addresses Housing Crisis : Lenders called on to Help
John McCain made it clear in his speech today that lenders have a reproducibility to make the terms clear to borrowers and Those seeking loans should have larger down payments when buying a home. He related that he does not think it is the Government's business to bail out transactions that were done in poor faith. He called on Lenders to work with Borrowers to possibly extend or keep payment rates affordable to the home owners. He mentioned the auto industry who allowed for interest free loans when the auto market was in trouble and interest rates where high in the 70s, 80s.
John McCain further related to his audience that he will not pander during an election season and wishes for this crisis to be worked out between the principles in the contracts. He alluded that the other party is making promises for votes.
SANTA ANA, Calif. (AP) - Republican John McCain, who has conceded economics is not his strong suit, says government isn't in the business of saving and rewarding banks or small borrowers who behave irresponsibly.
As the nation faces an economic downturn, the certain GOP presidential nominee was focusing on the turmoil in home financing in a session with local business leaders south of Los Angeles as he tried to rebut Democratic criticism of his economic credentials.
On Monday, the Federal Reserve essentially bailed out the investment house Bear Stearns. On Tuesday, the Fed Federal Reserve announced it has auctioned another $50 billion in short-term loans at an interest rate of 2.615 percent to cash-strapped banks to help them overcome credit problems. Since December, the Fed has provided a total of $260 billion in short-term loans to banks.
McCain wants to leave the door open to a wide array of proposals to address the problems.