No 'Reward' For Borrowers, Lenders: McCain

John McCain said today he opposes government action to bail out homeowners having trouble with their mortgages, the New York Times reports. McCain—who will receive Nancy Reagan's endorsement today—differentiated himself from both Democratic candidates, who have called for federal intervention, saying: “It is not the duty of government to bail out and reward those who act irresponsibly."

However, McCain said, intervention was prudent if it prevented “systemic risk that would endanger the entire financial system." The presumptive Republican presidential nominee blamed the ripple effects from defaults on the complex financial products built around mortgages. “Capital markets work best when there is both accountability and transparency,” and in this case, “both were lacking.”