Experts Deride McCain’s Mortgage Crisis Fix

Current woes not comparable to '01 factors that prompted GM to offer 0% financing

By Jonas Oransky, Newser Staff

Posted Mar 26, 2008 12:52 PM CDT

(Newser) – Economists, and rivals, are scoffing at John McCain’s ideas for countering the nation’s foreclosure crisis, taking aim at the suggestion that top lenders follow the post-9/11 example of General Motors—which offered 0% financing on new cars. But experts note that GM had its own interests in mind—not the country’s—in selling off excess inventory, the New York Sun reports.

Hillary Clinton, who earlier detailed a complex rescue plan of her own, said of McCain’s hands-off outlook, “It sounds remarkably like Herbert Hoover.” Fellow Democrat Barack Obama agreed, calling it “deeply troubling” that the Republican wanted “to sit back and watch” the housing crisis happen. None of the presidential hopefuls, the Sun notes, defers entirely to the free market.

Republican presidential candidate, Sen. John McCain, R-Ariz., speaks at a small business owners roundtable, Tuesday, March 25, 2008, at C & H Letterpress, Inc. in Santa Ana, Calif. (AP Photo/Mary Altaffer)

Republican presidential candidate, Sen. John McCain, R-Ariz., left, takes a question during small business owners roundtable, Tuesday, March 25, 2008, at C & H Letterpress, Inc. in Santa Ana, Calif. (AP Photo/Mary Altaffer)

Republican presidential candidate, Sen. John McCain, R-Ariz., greets a member of a small business owners roundtable, Tuesday, March 25, 2008, in Santa Ana, Calif. (AP Photo/Mary Altaffer)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

McCain Swerves, Says Feds Should Guarantee Mortgages

GOP candidate had previously said government can't 'bail out' borrowers

(NEWSER) - John McCain reversed his laissez-faire policy on the mortgage crisis today, saying government should indeed help subprime mortgage holders get guaranteed 30-year mortgages. “There is nothing more important than keeping alive the American dream to own your home,” the Republican said. McCain was criticized for his earlier stance that neither banks nor borrowers should be rewarded for acting irresponsibly. More»

Obama Plan: $30B Stimulus, More Regulation

Democrat blasts lax Bush oversight, McCain's laissez-faire approach

(NEWSER) - Barack Obama called today for stricter financial regulations and laid out a $30 billion stimulus plan, the Wall Street Journal reports, including measures aimed at the foreclosure crisis. The Democratic candidate said President Bush had “a generally scornful attitude toward oversight and enforcement,” and proposed expanding Fed powers and upping banks’ capital requirements. More»

Feds Must Ward Off Stagnation, Clinton Says

Says buying mortgages might be necessary to avoid prolonged skid

(NEWSER) - The government should step into the mortgage mess on a broader scale, Hillary Clinton told the Wall Street Journal yesterday, suggesting monetary policy alone can’t ignite a recovery and warning that procrastination could lead to stagnation similar to Japan’s weary economy. Clinton said the Federal Housing Administration should buy troubled mortgages in combination with a program to auction defaulted loans. More»

'Regulation' No Longer a Dirty Word in DC

Wall St. woes, toy and food scares have pols of all stripes on board

(NEWSER) - "Regulation" is becoming less of a dirty word in Washington in the wake of the mortgage meltdown, woes on Wall Street, and scares over tainted food and toys. Many Democrats and even some Republicans want a shift from voluntary industry standards in vogue since the Reagan administration. "We're in for a potentially significant regulatory response," one economist tells the Wall Street Journal. More»

Most Popular National Politician Today Is ...

Hillary Clinton, as 'buyer's remorse' plagues a third of the country

(NEWSER) - The most popular politician nationwide is the one that got away: Hillary Clinton. Nearly two-thirds of the country sees the secretary of state favorably, and a third are battling what Bloomberg terms “buyer’s remorse” over not electing her president. Just over a year ago, only a quarter of Americans felt that way. “Looking back, I wonder if she would have been a stronger leader, knowing the games and the politics and all that goes on,” says a Florida woman. “I don’t think she would have bent as much.” More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Experts Deride McCain’s Mortgage Crisis Fix

Current woes not comparable to '01 factors that prompted GM to offer 0% financing

OTHER STORIES ON OUR RADAR

Barack Obama • Hillary Clinton • John McCain • General Motors • subprime crisis • Herbert Hoover

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

McCain Swerves, Says Feds Should Guarantee Mortgages

GOP candidate had previously said government can't 'bail out' borrowers

Obama Plan: $30B Stimulus, More Regulation

Democrat blasts lax Bush oversight, McCain's laissez-faire approach

Feds Must Ward Off Stagnation, Clinton Says

Says buying mortgages might be necessary to avoid prolonged skid

'Regulation' No Longer a Dirty Word in DC

Wall St. woes, toy and food scares have pols of all stripes on board

Most Popular National Politician Today Is ...

Hillary Clinton, as 'buyer's remorse' plagues a third of the country

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Experts Deride McCain’s Mortgage Crisis Fix

Current woes not comparable to '01 factors that prompted GM to offer 0% financing

Bookmark & Share

OTHER STORIES ON OUR RADAR

Barack Obama • Hillary Clinton • John McCain • General Motors • subprime crisis • Herbert Hoover

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

McCain Swerves, Says Feds Should Guarantee Mortgages

GOP candidate had previously said government can't 'bail out' borrowers

Obama Plan: $30B Stimulus, More Regulation

Democrat blasts lax Bush oversight, McCain's laissez-faire approach

Feds Must Ward Off Stagnation, Clinton Says

Says buying mortgages might be necessary to avoid prolonged skid

'Regulation' No Longer a Dirty Word in DC

Wall St. woes, toy and food scares have pols of all stripes on board

Most Popular National Politician Today Is ...

Hillary Clinton, as 'buyer's remorse' plagues a third of the country

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?