McCain to blame 'complacent' lenders for mortgage crisis

i.l.cnn.net

Added 1885 days ago in Business

cnn.com — 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.

The economic slowdown caused by the credit crunch has become a top concern for voters. Consumer confidence in March dropped to its lowest level in five years, according to The Conference Board.

Vowing not to "play election year politics," McCain will call for more transparency in lending and higher capital reserves for lenders.

McCain also will call for homeowners to provide "responsible" down payments for homes, saying government-backed companies, like Fannie Mae, should never back loans when the borrower "clearly does not have skin in the game."

The Arizona Republican will also say he will oppose any government bailout of "those who act irresponsibly, whether they are big banks or small borrowers."

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In your opinion what would be better for the U.S. economy, a bail out business or a bail out of homeowners?

Business, avert a snow ball effect in the financial markets

8.9%

Homeowners, avert a snow ball effect in the Real Estate Mark

27%

Both

8.9%

None, should never reward those who act irresponsibly

56%

This is not a scientific survey, click here to learn more. Results may not total 100% due to rounding and voting descrepencies.

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