McCain reverses: Asks Government to Step in to End Housing Crisis

by Dave Keating | April 11, 2008 at 02:43 am

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Most likely advised by those around him that his position outlined last week would make him appear out of touch and indifferent to the anxieties of working class Americans, McCain has reversed his previous position and said the government should, in fact, step in and do something to ease the mortgage crisis.

In his previous speech on the economy, McCain had almost entirely focused on who would not be helped in teh current crisis, and had advocated a laissez-faire attitude.

John McCain called for an aggressive federal government role aimed at stabilizing the housing market, rejecting a largely hands-off approach he outlined two weeks ago.

The likely Republican presidential nominee's prescription included a heavy dose of policy more typically associated with Democrats, as he sought to show voters he understands their economic pain. Most significantly, he urged the federal government to guarantee new mortgages for homeowners at risk of foreclosure.

The plan "offers every deserving American family or homeowner the opportunity to trade a burdensome mortgage for a manageable loan," he told New York-area small-business owners Thursday.

The plan's price tag is estimated at anywhere between $3 billion and $10 billion.