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. Michael in Lorton, Virginia

    The government bailed out "Bears and Stern", and now McCain has the gaul to blame the mortgage crisis on the banks who loaned money to irresponsible people without skin. In addition he stated that the banks violated the basis principle of banking, "don't lend money to people who can't pay it back. All I can say is that, one man alone can be pretty dumb sometimes, but for real bonafide stupidity, there ain't nothing that can beat teamwork......banks....especially when they get greedy.

    March 25, 2008 01:51 pm at 1:51 pm |
  2. Lionel

    Good point–Banking/Lending 101.

    March 25, 2008 01:52 pm at 1:52 pm |
  3. Talimee

    McCain, what you dont understand is that if we dont address the foreclosure issue the value of these houses will continue to go down. It is a basic "supply and demand" idea. The more houses in the market, the lower the prices will be. If the government had regulated these practices in the first place we wouldnt be in this mess. Now, to just let homeowners go to foreclosure is a financial death sentence to the whole system. Many of these mortgages back other securities and that's why banks like Bear Stearns went down. Does McCain really want such a financial crisis in its hands when he goes against the Dem in November?

    March 25, 2008 01:52 pm at 1:52 pm |
  4. NIckNas

    Typical Repulican, blame the Poor people for THEIR problems even after they make HUNDREDS of MILLIONS of dollars profit off of them. Those loans were CRIMINAL but you will never see that in the press.

    Straight up Bait and switch!

    March 25, 2008 01:53 pm at 1:53 pm |
  5. Grif

    JOHN The Great White. SHARK...

    Will Gobble you up. Obama. ( Borackuda)

    March 25, 2008 01:53 pm at 1:53 pm |
  6. Truth

    Has McCain ever being baptised?

    March 25, 2008 01:54 pm at 1:54 pm |
  7. Nobillary Andobama

    McCain is partially correct...How about holding the lendees accountable for poor decision making by getting themselves into loans they can't afford and then getting foreclosed. The lenders are the ones left holding the bag for their bad call in lending money to high risk applicants....It takes two to Tango.

    Especially disappointing is the decision by the Fed to bail out Bear Stearns....I want a government that holds individuals, and corporations alike, accountable for poor financial decision making. IT IS NOT THE GOVERNMENT'S RESPONSIBILITY TO UNDERWRITE YOUR STUPIDITY!!!

    March 25, 2008 01:58 pm at 1:58 pm |
  8. David, Gilbert Arizona

    There is some validity to the argument that Congress brought this on themselves when they pressured the lending industry to make loans available to low income families allowing them to own a home.

    Now we the tax payers have to bail out not only the lenders but the home owners. Whatever happened to personal responsibility? If you know you can't pay a loan it should not be up to the tax payers to bail you out.

    March 25, 2008 01:59 pm at 1:59 pm |
  9. La Bomb ba

    Standard Banking scheme played out to its fullest
    Credit Card rip off interest = loan shark
    This is all part of the agenda
    Why no government protection after all these years
    Will he really do anything about it NO NO NO

    March 25, 2008 02:00 pm at 2:00 pm |
  10. mike, oklahoma

    Finally, a politician who tells it like it is. The blame for this mortgage mess rests with those crooked lenders who made these "fantasy" loans and the borrowers who no matter what they say knew they couldnt afford the house they bought and now both want the taxpayer to bail them out. I'm sick of seeing these sob stories on the news about the couple who are now living in a trailer because once their adjustable rate went up they couldnt pay the note and lost their house. They said they didnt read the paperwork and were not aware the rate could and would eventually go up. Too bad. You were greedy. You gambled. You lost. Get on with your life. It's not the end of the world although you may not be able to lease the Lexus you are used to. Same with the lenders. Too bad. If you go out of business oh well. I wish the other candidates would take this tone instead of pandering for votes.

    March 25, 2008 02:00 pm at 2:00 pm |
  11. Eric

    All the candidates are convienently ignoring the fact that most of the sub prime loans that are now defaulting are government backed loans. When a loan is purchased from Fannie Mae, a mortgage lender is required to underwrite the loan to Fannie's standards. So it is not the mortgage lender's fault that these loans are going bad as much as its Fannie Mae's fault that allowed these loans to be purchased in the first place. Mortgage lenders will lend money to anybody if they know the federal government is willing to back it.

    March 25, 2008 02:02 pm at 2:02 pm |
  12. DJC

    It's about time someone stands up to tell everyone to take responsibility for their actions, you borrowed the money, you pay it back, no bail out here. McCain a true american hero who could be in a WH race with a Mispeaking liar (with a history of it. hey but anything for a vote) or a person who sits by for 20 years while their preacher hates america and tells it! Easy choice for me! McCain all the way!

    March 25, 2008 02:10 pm at 2:10 pm |
  13. Bubba

    Well, they can pay it back by losing their houses, John. Like that's ever been a problem for you! The bottom line in a house mortgage deal is that if you can't pay the bank, they even up by having you sell the house. Same with cars; folks who aren't senators or ranking military officers have to offer to give up property in order to borrow money. I'm surprised you don't know that. Usually this works because the car, or house, is worth enough to pay most or all of the loan; but now with gas so high and the depression coming fast, cars and houses aren't worth so much. The banks were greedy, no doubt, and they have friends in both parties who will save them from losing their own cars or houses; but the real problem here is that Bush wrecked our booming economy. You rich people will notice it only when your maids can't afford taxis to get to your mansions.

    March 25, 2008 02:11 pm at 2:11 pm |
  14. SPQR753

    McCain stated: """....Don't lend people money who can't pay it back,"""".

    WOW.....and to think so many thought he knew little about ECONOMY.... go figure it!!!

    March 25, 2008 02:12 pm at 2:12 pm |
  15. johnny garth

    Is it not a bit ironic that a member of the Keating Five would dare comment on mortgage lending practices?

    March 25, 2008 02:15 pm at 2:15 pm |
  16. Vince from Ontario

    Who gets to decide what actions are warranted when someone makes an "inappropriate" comment. Why is the comment about Hiliary being a monster more offensive than Richardson being called Judas, or implying Obama is not patriotic, or why is it OK for Hiliary to "mispeak" when it appears to be more of an outright lie? Isn't there a great injustice in our society when judgement can be applied so radically differently? For that matter, why are CNN commentators able to make comments that may be hurtful to someone's career – in effect they are judgements – yet others lose their jobs over similiar comments? We have become a society which gets more pleasure from seeing and inflicting hurt and destruction, than helping our fellow man succeed. Does an inspirational leader like Barack Obama even stand a chance?

    March 25, 2008 02:17 pm at 2:17 pm |
  17. Donaldd

    AMERICAN DREAM DOWNPAYMENT ACT 2003
    Lack of Congressional oversight and Bush Administration fight against States to Control Mortgage lenders through the courts is why Spitzer had to fall from grace and power.

    Can anyone say Valery Plame Wilson?

    March 25, 2008 02:18 pm at 2:18 pm |
  18. John

    Hey McBush... How about "predatory leders" looking to make a profit?

    March 25, 2008 02:23 pm at 2:23 pm |
  19. Kris In Atlanta

    Well, this should certainly backfire in McCain's face. Does he think Americans are so stupid that we would forget that he has been in the powerful capacity of United States Senator for decades-and didn't see this crisis coming? Further, why wait until March 2008 to mention it? He neglects to mention that some of his biggest contributors are these mortgage corporations-thus his silence on the matter for so long.

    Once again, McCain shows us he is nothing but an old politician who will say anything to get elected. I guess in some McCain supporters' minds, he is taking a stance. How comforting to know that McCain has a solution to help us save our homes while the illegals he is gonna open the borders to drive our property values all the way down.

    March 25, 2008 02:24 pm at 2:24 pm |
  20. Hanging Chad

    Are we not a "Free Market" society? Hillary wants to redistribute wealth by bailing out those who acted irresponsibly to the tune of $30 BILLION.

    March 25, 2008 02:33 pm at 2:33 pm |
  21. ED

    That is right John If any body knows about sleazy money and banks ,you are well qualified to speak about it. REMEMBER THE KEATING FIVE IT APPEARS AS SOME GUY INVOLVED IN THATCROOKED DEAL WAS USING YOUR NAME, ALSO WHEN TRYING TO PULL A FAST ONE IN THIS ELECTION CYCLE. YOU KNOW ONE OF THE REASONS YOU KEEP COMING UP IN SLEAZY DEALS IS REALLY NOT STUPIDITY IT IS BECAUSE YOU ARE AWLWAYS TRYING TO INVOKE YOUR OWN STANDARDS WHICH DO NOT APPEAR TO BE TO HIGH.

    March 25, 2008 02:33 pm at 2:33 pm |
  22. Ian

    First, Senator McCain is absolutely right. I calculated my budget, chose a house I could afford, and read my mortgage paperwork carefully. I am far from being a rich man, but I am a financially stable homeowner because I'm RESPONSIBLE.

    Too many people in this country spend way beyond their means and then cry foul when they get so far in the hole they can't get out. I will not support a candidate who plans to use my tax dollars to give irresponsible people a better deal on their house than I got on mine.

    Second, for all you left wing nuts blaming the current administration. It would seem to me that the Democrats have been running Congress for the past few years, and that's the primary source of legislation, NOT the president. Where were the proposals to address the shady lending practices? Answer: There weren't any until it became a crisis.

    Remember when you point a finger, there's three more pointing back at you.

    March 25, 2008 02:34 pm at 2:34 pm |
  23. Uncle Sam

    Whether or not you plan to support his candidacy, you can trust John to tell it like it is and demonstrate the courage to hold the right people responsible. Say what you will about him, but he is no George Bush.

    March 25, 2008 02:34 pm at 2:34 pm |
  24. Susan

    I couldn't agree more. I have worked my entire life, saved my money and avoided debt. Someone should explain why my tax dollars should go to bail out someone who chose to buy a home they couldn't afford in the first place.

    March 25, 2008 02:35 pm at 2:35 pm |
  25. Praetorian, Fort Myers

    There is also a good borrowing rule:

    Never borrow money at rates you can't afford or with terms and conditions that will set you up for financial ruin.

    The government shouldn't be bailing out the banks nor the consumers who took advantage of loose money dangling from the end of a clearly labeled "noose".

    March 25, 2008 02:40 pm at 2:40 pm |
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