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
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)
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(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.