McCain Gets It on Housing “Crisis”

Wow.  I’m impressed!

“I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers,” McCain said in remarks prepared for delivery. “Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy.”

He said no assistance should be given to speculators, or people who bought houses to rent or as second homes.

. . .

With the outgoing chief executive of eBay Inc., Meg Whitman, alongside him, McCain opened with a nuts-and-bolts explanation of the conditions that caused the housing crisis and financial market problems.

McCain said lenders became complacent as housing prices continued to rise, lowering their standards and lending money to people who couldn’t pay it back. Some consumers, he said, bought homes they couldn’t afford, betting they would reap the benefits later of higher home prices. Meanwhile, he said, the housing market lacked accountability and transparency, and “the initial losses spawned a crisis of confidence in the markets.”

I guess you get this sort of depth when you have Phil Gramm, Jack Kemp and Steve Forbes as your economic advisors.  Bravo, McCain!  (Never thought that I’d be writing those words.)