Wednesday, March 26, 2008

John McCain puts the Mortgage Bailout into perspective

Thanks to Ankle Biting Pundits, who pass along John McCain's recent comments critical of a taxpayer funded bailout:

Drawing a sharp distinction with the Democratic presidential candidates, Senator John McCain, warned Tuesday against hasty government action to solve the mortgage crisis, saying “it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers.”

But Mr. McCain’s remarks on Tuesday represented a stark tonal shift from the increasing calls for helping homeowners, as he faulted not only borrowers who engaged in risky lending, but suggested that some homeowners engaged in dangerous financial practices.

“Some Americans bought homes they couldn’t afford, betting that rising prices would make it easier to refinance later at more affordable rates,” he said.

Mr. McCain argued that even during the ongoing crisis, the vast majority of mortgage holders continued to make their payments.

“Of those 80 million homeowners, only 55 million have a mortgage at all, and 51 million homeowners are doing what is necessary — working a second job, skipping a vacation and managing their budgets to make their payments on time,” he said. “That leaves us with a puzzling situation: how could 4 million mortgages cause this much trouble for us all?”

Barack Obama wants to spend $10 billion of your money on a bailout. Hillary Clinton has increased the bidding to $30 billion. Nobody knows how expensive the bailout would be by the time Congress is finished.

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