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

McCain to blame 'complacent' lenders for mortgage crisis

[cnn-photo-caption image= 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. Doug R.

    Mr. McCain knows next to nothing about the economy. He even admitted it. He has people whispering things to him. He misspeaks everyday.
    Somebody needs to whisper to McCain that we have had 7 years of fiscal irresponsibility committed by this administration and the Republican party.

    March 25, 2008 02:40 pm at 2:40 pm |
  2. Wayne, Greenville TX

    A few words for McCain to keep in mind:



    March 25, 2008 02:41 pm at 2:41 pm |
  3. Praetorian, Fort Myers

    Righ on Gary...

    It's tough enough to take care of my own financial responsibilities–without pissing away my grandchildrens future to Government debt in order to bail out banks and consumers who were irresponsible.

    March 25, 2008 02:43 pm at 2:43 pm |
  4. HP Boston

    Well the media is marketing the myth it is the home buyer at fault.
    Get a grip the criminal in the mortgage scam are complicit with Wall Street.
    The big lie is we bail the big guys Bear St earns and the homeowner who was SCAMED goes broke. NO HOME!

    Why even vote in any election, we are run by big biz who own the mere politicians!
    I am giving up on this fiasco, we are doomed.

    March 25, 2008 02:44 pm at 2:44 pm |
  5. conrad

    Great, Mr. McCain. You don't see helping the average Joe, but bailing out Wall St. makes sense. More corporate welfare is exactly what we need right now. Applying the same thinking to this issue that you apply to Iraq, I would expect you to say something like "we're in this mess now so let's not waste time rehashing how we got here. Let's just do what we have to do to to fix it". You certaily didn't say that. With the economy not being your strong suit, could it be that you don't know how? Sounds like more Bush talk to me. I suggest we help our economy by getting out of Iraq. Spending $5,000 per second in that war is nonsense. BTW, my true patriot is my son who is expected home from his third one-year tor in Iraq soon.

    March 25, 2008 02:47 pm at 2:47 pm |

    Hey McBush how about Record job losses you think that might have something to do with it .

    Another brain dead Republican

    March 25, 2008 02:55 pm at 2:55 pm |
  7. lamotz

    I agree totally with those who place blame on the lenders AND the borrowers. The lenders knew exactly what they were doing. It doesn't take a rocket scientist to figure out that a person with poor credit, not enough income to purchase a McCastle, and no hope of quadrupling his/her income is a very poor credit risk; but they were willing to take a chance. The borrowers, on the other hand, must have been oblivious (or stupid) to get in that far over their heads. The American taxpayer (Democrat or Republican) should not have to bail them out. These were business deals...signed, sealed and notarized.

    March 25, 2008 02:55 pm at 2:55 pm |
  8. About Time Somebody Said It

    Amen. It's about time somebody spoke up with this sentiment. Just becasue one wants it doesn mean he/she can have it. That is why I live in a condo, not a mega masion, although I want and feel I deserve it.

    Amen Future President McCain!

    March 25, 2008 02:57 pm at 2:57 pm |
  9. bond

    McBush has no idea what he's talking about. He's just been spoon-fed a bunch of jargon he doesn't even understand from every adviser under the sun. He will be absolutely crushed matching wits with the Dems over the ecomomy. I'm pretty sure he thinks al-Qeada caused the housing market crash.

    March 25, 2008 02:57 pm at 2:57 pm |
  10. Marj,Paso Robles, Cal

    I blame the idiots who signed on the dotted line. The American public shouldn't reward stupidity.

    March 25, 2008 03:00 pm at 3:00 pm |
  11. CARRIE

    Hey, I saw McCain wink when he was giving this speech. In fact, I saw him wink twice.

    March 25, 2008 03:01 pm at 3:01 pm |
  12. Greg

    I'm sick and tired of paying for other people's mistakes. The notion of "common good" belongs in Socialist countries, not the United States.

    It's bad enough our taxes are progressive and not flat (starting after a certain point). The government should NOT bail out the mortgage companies. The two entities at fault for this crisis are the mortgage companies and the borrowers. If the borrowers had been intelligent about the loan they chose and didn't exceed their lifestyle, the crisis would have been avoided.

    Constantly bailing out people who make mistakes (whether it's the poor or people borrowing more than they can afford) is far too expensive and SHOULD NOT be paid by those who are responsible, pay too much in taxes as it is and do not leech from the system.

    There is NOTHING offensive in the preceding post. If it does not appear, CNN is doing a great job of keeping the comments on the track they think it should be on.

    March 25, 2008 03:02 pm at 3:02 pm |
  13. Debbie

    Don't listen to Hillary. She lies. The proposal she came up with was initiated by Senator Dodd. She stole it. SHe'll so anything to get in office. The proposal is good. But it's not hers.

    March 25, 2008 03:02 pm at 3:02 pm |
  14. Margeaux

    I am tired of getting people out of jams that they put themselves in to. If they speculated on the stock market or wasted their money on lottery tickets, we would not be bailing them out, so why this. McCain hit the nail on the head, but people always want to blame someone else for their own stupidity.

    March 25, 2008 03:05 pm at 3:05 pm |
  15. Debbie

    John nobody should suffer and become homeless. Be very careful how you judge people. You may find yourself in their shoes someday. If we as a people could protect ourselves from the bad judgements we make there would be no need for police, local, state and federal gov't nor would we need jails. People make wrong decisions and there are always criminals out their to take advantage of that. I hope you learn your lesson from all of the wrong decisions you've made in your little life.

    March 25, 2008 03:06 pm at 3:06 pm |
  16. An American in Canada

    Perhaps John McCain should ask Barack H. Obama to be his Vice-

    President since they both do not have any solutions to any of the real

    problems that will face them if they get into the office. All they are both

    capable of doing is pointing fingers.

    Hillary Rodham Clinton is the only true capable person to be the next president of America....

    March 25, 2008 03:15 pm at 3:15 pm |
  17. Ron

    WAIT A MINUTE!! Senator McCain is once again not grasping the entire situation. Along with alot of you that have NO IDEA what it is to dream of something like a home and have that dream used AGAINST YOU!!! I am 52 years old and I can remember a time when if you didn't have 10% CASH to put down on a house. YOU DID NOT GET ONE. Then they lowered it to 5%, a few years ago it went to 0%. On top of that some of the lenders were actually putting the income of the potential buyers HIGHER than what they actually earned!! This is what you call making money on another persons weaknesses. The government knew this was happening and they could have stepped in and put in some MINOR restrictions. That is one of the purposes of a government to protect those people who can be easliy taken advantage of, and they didn't. You CAN NOT trust business to regulate itself...JUST WON"T HAPPEN!!!

    March 25, 2008 03:17 pm at 3:17 pm |
  18. Fiyah_Startah

    McCain's point is what the banks have argued. You have to remember the Gov't is very involved with the interest and bank loans. This Gov't has become bigger spender than Hillary's Bosnia trip. To think that McCain will now blame the same people who has funded him in the past, just lets me know they refused him this time around. It's sad to see how He hasn't mentioned on how to penalize the banks who were giving out the loans. The banks is just at fault, but then again how can you blame the homeowners who lost their jobs/careers to NAFTA (which Hillary sat in on for strategy), Market up for grabs, and isn't funny how we can blame homeowners? How about the US Gov't deciding to borrow the billions of dollars from China? What's the interest on that?

    March 25, 2008 03:23 pm at 3:23 pm |
  19. Bill from Edmond, OK

    "...the oil companies are gouging the little guy..." (speculators and the declining dollar actually cause the price jumps) "...the rich mortgage bankers took advantage of the poor American..."(people are willing to risk everything to have more than they can truly afford) "...the governemnt needs to protect us..." (can you say "personal responsibility" ?) This garbage has been spewing out of people's mouths as usual, with no one willing to accept responsibility for creating their individual messes. I continually see young families driving HUGE SUVs, living in huge, luxurious homes, and eating in restaurants 5 days a week. An entire generation has created and lives in their personal "house of cards". They get what they deserve.

    March 25, 2008 03:25 pm at 3:25 pm |
  20. Jimmy Alderson in Atlanta

    The fact remains that the lenders are responsible to the investors who purchase these loans to ENSURE that this money is being lent to the QUALIFIED borrowers.

    I really don't care how many silly borrowers lose their homes. What I care about is how horrible our economy has become because of lazy and greedy lenders.

    Also there were a ton of these lenders who were serioulsy hoodwinking the uneducated, so even on the lost home front, it's not the borrowers fault.

    March 25, 2008 03:27 pm at 3:27 pm |
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