March 25th, 2008
11:01 AM ET
15 years ago

McCain to blame 'complacent' lenders for mortgage crisis

[cnn-photo-caption image= http://i.l.cnn.net/cnn/2008/POLITICS/03/25/candidates.economy/art.mccain.gi.jpg caption=" Sen. John McCain will blame "complacent" lenders and speculators for the current mortgage crisis."](CNN) - Sen. John McCain Tuesday is expected to blame "rampant" speculation and "complacent" lenders for the current mortgage crisis, in an upcoming speech.

"Lenders ended up violating the basic rule of banking: Don't lend people money who can't pay it back," the presumptive Republican presidential nominee is expected to say in a speech in Santa Ana, California, according to his prepared text.

While the Democratic presidential candidates have both proposed specific plans to address the mortgage crisis, Tuesday's speech will be McCain's most extensive comments on the subject to date.

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Filed under: John McCain
soundoff (70 Responses)
  1. Brian

    Yup and its the poor's fault. We need to raise their taxes so the Rich can get tax breaks.

    McCain '08

    March 25, 2008 01:19 pm at 1:19 pm |
  2. The Austrian

    Wow, remember when John said "The issue of economics is not something I've understood as well as I should" last year? Did he do NOTHING to rectify this ignorance since then? What a doofus; if knew anything about money and economics, he'd know that the cause of the crisis is twofold: Consumers buying what they can't afford, and the Fed artificially beefing up the economy with more and more fiat money. Senator, if you want a sound education in economics, I'd guy buddy-up with Dr. Paul. I'm sure he'd happily let you in on how things really work.

    March 25, 2008 01:21 pm at 1:21 pm |
  3. Peggy S

    All of a sudden he knows something about the economy?!

    We dont believe you!!

    March 25, 2008 01:24 pm at 1:24 pm |
  4. B. Gorman, New Orleans, LA

    Senator McCain has to do this to look like he has a clue about how to handle the American economy, but I think he's simply hoping and praying the housing mortgage crisis peters out. His economic experience is lukewarm to say the least. Right now, it seems just as important to elect a president who will address the economy with more regard than foreign policy (not to downplay this, but we have to take care of the house before we take care of our neighbor's). One interesting note, Bloomberg supported Senator Obama's economic plan. I trust Bloomberg when it comes to wise fiscal decisions, so that's certainly something to think about, isn't it?

    March 25, 2008 01:24 pm at 1:24 pm |
  5. stag

    "Lenders ended up violating the basic rule of banking: Don't lend people money who can't pay it back," not right John M. Borrowers ended up violating the basic rules of borrowing....don't borrow money you can not pay back and do not sign loan agreements you are too stupid to understand.

    March 25, 2008 01:25 pm at 1:25 pm |
  6. Dorothy DeLong

    Jack if people would listen to Hillary maybe we can get out of the mess we are in. At least she is trying to find ways and I havent heard anything from the Obama group but critizing everything Hillary says/ At least McCain admits he doesnt know a lot about money matters I am sure Obama wont admit to any thing like that. Dorothy

    March 25, 2008 01:26 pm at 1:26 pm |
  7. John

    Why does no one point the finger at the millions of people who took out loans on homes they should have never taken the risk in purchasing; why instead are the populists planning to force taxpayers to bail out the irresponsible, when those people should suffer and learn from the pain they inflicted upon themselves...

    March 25, 2008 01:28 pm at 1:28 pm |
  8. ChaChaCha

    Actually, McCain just doesn't want the truth to be known. The companies, much to everyone wanting the bubble to not burst, and for some the importance of Americans being able to own their own homes, followed within the outlines given to them and while some might have pushed the envelope, no restrictions were written and sent down from the top....the govt. let it happen. Who is the top of the top of our Govt. today?? Well, you know McCain doesn't want to blame the TOP MAN nor his own party. But if you have listened to financial analyst, you will know the truth and it isn't going to be here by McCain. Regulations come down from the Feds all the time, but not here where it was needed and you just have to ASK, WHY NOT?

    March 25, 2008 01:28 pm at 1:28 pm |
  9. Mike

    How about the economy? The lenders have been doing this long before the economy went bad. How about gas prices? How come oil companies are making record profits while everyone is working to pay for gas.

    March 25, 2008 01:29 pm at 1:29 pm |
  10. Tom Swift, Shopton

    McCain said: "Lenders ended up violating the basic rule of banking: Don't lend people money who can't pay it back"

    Can't argue with that, but some of the morons that took those next-to-nothing "teaser" ARM rates and are now in trouble when their rates entered the real world have to take their share of the blame also.

    Gore/Obama '08

    March 25, 2008 01:29 pm at 1:29 pm |
  11. He knows nothing but WAR

    I think he must have listened to Hillary`s speech the other day and just made a copy of himself.

    Another copier.

    March 25, 2008 01:29 pm at 1:29 pm |
  12. Tom

    McCain is absolutely nuts. Hillary needs to hurry up and end her campaign so Obama can blow him outta the water.

    March 25, 2008 01:30 pm at 1:30 pm |
  13. VOTER FOR TRUTH, DIGNITY-OBAMA/EDWARDS 2008

    "Blame" is a mute point by now. The government, under the Republican, Bush, and his cronies, let it happen and let the big shot "crooks" make money before their eyes. Bush loved "the rich" and It is continually unraveling before our eyes.

    March 25, 2008 01:30 pm at 1:30 pm |
  14. Ifeanyi Azubike Houston Texas

    He simply does not get it. The problem is not that money was lent to people who cannot repay but that the republican handling of the economy has led to job loses and monster inflation that has turned stable borrowers into jobless and helpless debtors. Calling these borrowers irresponsible people who borrowed more than they can repay tells in a nutshell what to expect in a McCain presidency and believe me 'IT IS VERY SCARY'.

    March 25, 2008 01:30 pm at 1:30 pm |
  15. McBush

    Blame Bush, Sentor MCsame. seven year of republican admistration is what got us to this mess.

    March 25, 2008 01:33 pm at 1:33 pm |
  16. Darth Vadik, CA

    HAVE YOU PEOPLE NOTICED HOW HILLARY AND HER BEST BUDDY McCAIN SEEM TO "MISSPEAK" EVERY COUPLE OF DAYS.

    March 25, 2008 01:34 pm at 1:34 pm |
  17. No Speculators Please

    John McCain...I do believe you will get to the bottom of it. Unlike Hillary who wants to BAIL OUT EVERYONE...you or Obama either one will do WHAT IS RIGHT! Neither of you have special interst or lobbists to worry about.

    One request...for God's sake start NOW...don't wait America needs fast action...we voters can also see exactly how the candidates will work to solve this problem.

    March 25, 2008 01:37 pm at 1:37 pm |
  18. CharlieB

    McCain's correct, we the tax payers should not relieve the housing burden placed on us by those who speculated the prmoise of raising housing values.

    I constantly hear of people complaining about their house payments. And hearing these, you have to wonder who the educated are that would extend themselves so far and how their loans were approved?

    No, don't relieve self-imposed mistakes with tax-payer money. Use our tax-payer money to strengthen our infrastructure, health care, social security, education and bring our soldiers home.

    I am still for Obama, but Mccain has a good thought here – the housing program was abused by the over-speculation of the market.

    March 25, 2008 01:39 pm at 1:39 pm |
  19. Kevin

    People bought houses they couldn't afford, and both democrats want to support them? That's just incentive for people to spend ridiculously, hit bankruptcy, and have the government bail them out. That's ridiculous.

    McCain's been the first candidate to hit the nail on the head, and address the problem with an accurate solution.

    For the candidate who "Doesn't know much about economics" he's the only one making sense.

    March 25, 2008 01:40 pm at 1:40 pm |
  20. VOTER FOR TRUTH, DIGNITY-OBAMA/EDWARDS 2008

    Why did not they. THE REPUBLICANS say this when it mattered?
    Just like the War in IRAQ. Who had the balls to speak up to the
    cronies? No one. Many Americans could see the writing on the wall.
    Why did'nt OUR TRUSTED OFFICIALS?????????????????????

    March 25, 2008 01:43 pm at 1:43 pm |
  21. Frank

    "Clinton proposed giving mortgage service companies legal protections to allow them to help troubled homeowners, and she re-introduced an idea for a second economic stimulus package that would include $30 billion to help homeowners facing foreclosure." – I doubt these legislative
    actions will help homeowners. The tax rebates are too small to have any meaningful effect and consumers will use the rebates for needless things. Legal protections for service companies may be counterproductive and may encourage corruption.

    March 25, 2008 01:43 pm at 1:43 pm |
  22. Gary A Lantz

    I am happy that someone has taken a stance. I'm tired of doing things right and staying within my own budgets to find out that my tax dollars are to go pay for people that spent more than they could afford.

    The American people need to be responsible for their own actions just as much as banks and bank managers. Sometimes a quick buck today will cost you 10 next year, anyone in the banking industry understands risk and if the Government bails them out this time, what's going to stop them from doing it again?

    March 25, 2008 01:44 pm at 1:44 pm |
  23. Walt, Belton,TX

    Amen! If you make a bad busines decision, the Federal government should not bail you out with tax payer money. That's stupid!!!

    March 25, 2008 01:44 pm at 1:44 pm |
  24. Alonzo Demetrius, FL, USA

    No, no, no. The consumer, the one who signed the contract, is the person responsible to pay per agreement. No one forces buyers to go into debt they can't afford. The housing market is no different than credit cards or purchase of a car: you sign on the bottom line and you pay as agreed.

    Problem is, so many of today's consumers have got the idea they don't have to live up to their contracts. Now where did that idea come from?

    March 25, 2008 01:47 pm at 1:47 pm |
  25. Donaldd

    Why isn't the fact that John McCain not having been born in the Panama Canal Zone is running for president?

    Embelishments on one's resume is one thing; changing the facts around ones birth place to run for President is another.

    Coco Solo Hospital was not added to the Cana Zone until Dec 17, 1941 when McCain was 5 years old. Franklin Roosevelt Executive Order 8981.

    Barry Goldwater was at least born in a US Territory; McCain Wasn't!

    March 25, 2008 01:50 pm at 1:50 pm |
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