Crony Senility

The guy is outta his mind.

McCain: Feds shouldn't do much about mortgage crisis

By Matt Stearns McClatchy Newspapers

WASHINGTON — Sen. John McCain, R-Ariz., on Tuesday called for mortgage lenders to help struggling homeowners stay in their homes, but said government's role should be temporary and limited.

[...]

"It is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers," McCain said in a speech in Santa Ana, Calif. "Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy."


McCain said that the Federal Reserve's bailout of Bear Stearns met his criteria. But he offered no specific federal proposals to aid homeowners facing foreclosure. He promised to evaluate proposals "based on their costs and benefits," but he didn't address any of the solutions percolating on Capitol Hill.

[...]

After the speech, McCain adviser Doug Holtz-Eakin rejected the type of foreclosure moratorium that Clinton has pushed, saying it doesn't "address why someone is in foreclosure."


"As harsh as it may sound, that may be an appropriate outcome in some cases," Holtz-Eakin said.

[...]


Carly Fiorina, a McCain adviser, conceded that "there are clearly some mortgage lenders that are not in a position to do this" because many are in financial straits because of bad loans.


"It could be that this spawns a wave of consolidation in the mortgage lending industry that is appropriate," Fiorina said. "Consolidation is not a bad thing. It's a healthy market response."

Oh, that's rich, Carly! Let's monopolize the mortgage lending industry like we did the MSM. Got to take care of our obscenely wealthy cronies dontcha know.

I especially like that part about the Fed's bailout of Bear-Stearns met his criteria.

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