McCain: 'Not the duty of government to bail out'

Sen. John McCain has just finished a speech in Santa Ana about the economy and the housing crisis, and I'll be darned if I can spot the headline right now. Reuters leads with "McCain seeks solutions to housing crisis."

Don't we all?

Bloomberg News focuses a single line in the speech: "Republican presidential candidate John McCain said a government bailout of banks should be based 'solely on preventing systemic risk' and not on helping financial and property speculators."

Here's the Reuters lead: "Republican presidential candidate John McCain, looking to bolster his economic credentials, called on Tuesday for quick meetings of mortgage lenders and accountants to begin to tackle the U.S. housing crisis.  McCain, who has been criticized as weak on the economy, said he was open to a variety of solutions to ease problems in U.S. housing markets but did not specify an immediate approach."

The line that wants to be a headline: "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," he said.

On first read, it appears the speech leaves open the possibility that McCain will embrace one of the ascendant myths in Washington right now: that government is capable of carefully crafting a bailout for the blameless.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Photo Credit: Getty Images

Comments

[ILuvLA]

It's all down to the pandering ...

[Keith - letitsink.blogspot.com]

If McCain comes out completely against a bailout of banks and home buyers, I will vote for a Republican president for the first time in my life.

[Jenna]

If it wasn't for his stance on the war, this die hard dem would vote Republican for the first time ever.

[Rob]

Ladies and Gentlemen.....and Democrats.

Introducing the next President of the United States.

[puckhead]

LOL’s Keith,

Dubya is the king of free market laissez-faire economic policy. All that went out the window when the credit markets seized up, Bear went down and a financial meltdown was staring him in the face. Politicians are not very rigid in ideologies when faced with meltdowns and agree voters.

[Eliza]

The Federal Reserve stepped in to bailout Bear Stearns with 30 billion, the Federal government stepped in to bailout the airline industry post 9-11 and now there's resistance to the housing crisis bailout? Why is there such resistance to bailout the public when our government has no problem about bailing out corporations.

[John]

""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," he said."

Man, as old and cranky as that man is, that's an admirable sentiment to see him expressing.

[Nick]

I want to believe it, but it's a little too much intelligent thought coming from a politician's mouth to reconcile with my world view. Yet... I can't think of a reason why it would make sense to say you oppose a bailout if you don't, when clearly all the pandering candidates are jumping on the bailout bandwagon, and it's clearly not going to help your standing in the eyes of the unthinking morons who the bailout proponents are pandering to. Signs of intelligence from a politician... maybe the world really is coming to an end...

[Jeugenen]

MC-CAIN’S “WINNING” STRATEGY IN THE PRESIDENTIAL BATTLE OF THE AMERICAN CULTURAL WAR

With Hillary now condemned by the Kennedy Liberals to be burnt at the stake, McCain is the presidential candidate desperately supported by both panicked Podhoretz Neo-Conservatives and Leiberman Neo-Liberals. His shrewd puppeteer, that political dirty trickster Charlie Black, to compensate for McCain’s reputation being insanely subversive to both traditional Reagan Conservatism and Kennedy Liberalism, and for Obama’s reputation being honorable, shall depend on deceptive propaganda techniques, for a politically suicidal campaign that will predictably culminate with McCain getting a well earned date with a Democrat and Republican firing squad.

This foolish Marxist strategy is transparently intended to miraculously transform the image of Neo-Con McCain into an acceptable Conservative, while transforming the image of young Obama into an unacceptable radical black Liberal, by hook and by crook. McCain has notoriously opposed the Republican efforts to preserve lower taxes, supported child sacrifice by abortion, rebuked and ridiculed Christian sects, suppressed freedom of speech on the internet, supported illegal immigration of Mexican labor, supported the loss of vital American technology and jobs to China, and supported the illegal sacrifice of the wealth and blood of the American People for the sole benefit of Israel; and he has accomplished nothing noteworthy in his long, contentious, and politically divisive public career. Obama has earned an honorable reputation and a promising political future, by his Harvard legal education and his hard honest work as Illinois Senator.

McCain’s insane disloyalty to his Christian God, his Constitution, his Republican Party, and his military forces will be drowned out by Charlie Black’s incessant propaganda portraying him as the most trustworthy and competent Conservative candidate. Endorsements by Judas ministers and turncoat Conservatives will be bought with campaign promises. Much of the freedom of speech on the internet will be suppressed by continuous complaints and threats. Simultaneously, incessant slanderous propaganda attacks will be launched against Obama’s name, religion, patriotism, and political philosophy. Anti-Semite, black-racist, and political-sleaze baiting attacks will be instigated by Black against vulnerable religious and political groups within Obama’s broad spectrum of supporters, and their vices will be deceptively associated with Obama, as in the recent cases of the real estate crook and the old black racist pastor. And political collusion among millions of Neo-Cons and Neo-Libs will be orchestrated through leading Neo-Con and Neo-Lib commentators in the news and entertainment media. Of course, all of this injustice and persecution of Obama will never be forgotten and will certainly be punished.

McCain’s strategy, based on the assumption that the majority of decent and trustful Americans are sufficiently gullible, is foolish because leading Liberals and Conservatives have long recognized that their real enemies in the American Cultural War are these Neo-Cons and Neo-Libs now entrenched in government, colleges, schools, and news and entertainment agencies. Their incessant subversion of traditional Christian culture and Constitutional government has been intensifying since the McCarthy Era, when politically defeated as Marxist refugees from Nazi Germany, they quickly evolved into two species of Neo-Marxists, the crypto-Marxist Neo-Liberal Democrats and Neo-Conservative Republicans, to resume their relentless ideological politically struggle to gain social and economic power over the America People.

[Mick]

The people who seem most eager to promote socialized banking also appear to be the most fearful of socialized medicine. God knows nobody wants government intervention in healthcare. Death first, I say.

[CD]

You think the other guys would be smart enough to say the same thing, to grow some balls, although Hillary is already wearing Bill's around her neck......But Noooooo they just want to cry in our coffee feeling sorry for the home owners who bought over their head....Democrats love victims, they love to cry.... This may be the defining moment of Mc Cain's campaign; the "no bail out" will get my vote, registered democrat or not....Who will be the adult in the bunch?
Hillary could have scored on Obama on that one, she
missed the boat....

[mike]

this is crazy. i got sucked into a loan by a predatory lender. i deserve a bailout more than nayone else. this clown doesn't get my vote. this problem is the responsibility of the government. they should be prosecuting the lenders and realtors!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!I DESERVE A BAILOUT. I GOT SCREWED!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[Jamie]

Thank goodness! One sober-minded thought in a world of crazy opinions on the housing market. And I like Obama.

[IToldu2CashOut]

Hmm, republican supreme court justices or Bailout Obama. There seems to be no good choice. Maybe I'll vote for nader.

[Rob]

Jeugenen wrote: “This foolish Marxist strategy is transparently intended to miraculously transform the image of Neo-Con McCain “

What 3rd rate OP-ED liberal rag are you... Oh, here it is….http://tinyurl.com/25fqla

[left of lefty]

"Republican presidential candidate John McCain said a government bailout of banks should be based 'solely on preventing systemic risk' and not on helping financial and property speculators."

therein lies the problem. everyone agrees with this -- even the democrats. the question is how? how do you bail out the system without bailing out the individuals that make up the system? how do you fix the whole without fixing the parts?

in the end, even the republicans will sacrifice their moral judgment and bail out the speculators in order to prevent the system from collapsing, i.e. bear sterns.

[l.a.guy]

One thing I do like about McCain is that he has the cojones to state politically unpopular opinions. How many national politicians have criticized ethanol? He's been a vocal critic of Congressional pork for years. I'm not sure he's Obama's intellectual equal, but you do have a pretty good idea of what you're getting with McCain.

[Laker]

Jeugenen wrote: ..."sacrifice of the wealth and blood of the American People for the sole benefit of Israel..."

Jeugenen, you are Neo Nazi antisemitic yourself. You forgot about the terrorists breading nests and the support Iraq gave to them in form of training and cash. That is why you support Hussein Obama.
Luckily your pal is going back to be a plain senator from Illinois after November.

Senator McCain, or the people in your team, stand by your word and oppose any government bailout! The majority of the people do NOT support bailout as they know it is coming directly from their pockets!
Even in LA where 65% rent, they care less about this housing "crisis". People care about food and gas prices! Bring that down!
If you stick to that, you get my vote and many other's vote, does not matter DEM or GOP. The next president of the US of A.

[sjen]

Yes McCain, you got my vote. No bail-out. If the government always rescues, the same group of people will repeat the stupidity over and over. It'd be a tough lesson for many but the same many need this lesson to learn about financial responsibility, or being responsible period!

[AAB]

Here is the quote:

"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. Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy."

In other words, "I am against bailouts except when I am for bailouts".

Love this blog, but a bit of context around that quote would have made it a little easier to parse out the fact that this is doublespeak and with a sound-byte intended as election fodder. It seems to be working since I am seeing "McCain against bailouts" as the main pull-quote from this speech.

[Perdido en el Ecuador]

I have two words for everyone:

Keating Five

[dillon]

here is the full text of mccain's speech:

http://tinyurl.com/33y3qb

[jb]

I am with Keith

"If McCain comes out completely against a bailout of banks and home buyers, I will vote for a Republican president for the first time in my life."

Hey idiot politicians - are you listening?

[InspiredLA]

Jeugenen, dude, get a personality. Or get laid, or something.

Mike, seriously, get over yourself. If you got suckered, tell it to the judge. That's what the courts are for.

More likely, you did something complicit like misstate your income, sign off on a fraudulent loan app, neglect to read the paperwork, or educate yourself at all about the risks and responsibilities of the biggest purchase you'll ever make in your life. Even with the most predatory of lenders sharing the bed, it still takes two to screw.

Bail-outs are bad voodoo. If people make poor choices and you remove the negative consequences, you teach them to continue making poor choices. It's the dumbing down of America at taxpayer expense, and we are not going to stand for it.

[JohnnyB]

It was quite humorous watching McCain being led around the globe on Leiberman’s tight leash. L’s hand was practically under M’s coat… pulling the puppet strings from behind, occasionally yanking the leash in a “heal boy” move while whispered sweet “corrections” in his ear.

McCain can barely contain his glee at the thought of spewing more Arab hate, tying Iran to the “evil doers” and rushing headlong and red-faced into Tehran to widen and entrench our presence in the Middle East. And, it wouldn’t end there in Iran.

McCain is now a broken record of fear mongering, cultural division/exploitation and broad, sweeping military solutions (and spending). It’s in his DNA. With all due respect to his obviously honorable service, he has completely sold out. He has sold out most of his own principals and appears to be a fluttering dandelion seed blowing in the winds of special interest money.

For fun campaign viewing pleasure, try watching an Obama speech followed directly by a McCain speech. They did this once on CNN after Obama’s excellent Madison, WI speech. In short, McCain does not stand up well next to Obama. Nor do his words persuade. Not at all…

Please wake up people.

His no bailout comments mean jack sh*t.

[MyLessThanPrimeBeef]

Very interesting.

I just read that Obama is related to Brad Pitt and Hilary is related to Angelina Jolie. Of course, Hilary is married Bill who warmed the seat between the older and younger Bush.

So, here we have at most 2 or 3 degrees of separation. We are all just one big family.

[jb]

C'mon Mike,
Tell us how you were "swindled"? Telll us that you did not plan on making a bucket of money on your "investment". It is my opinion that ALL purchasers of a house are speculators of some sort, and NONE should be rescued (if there was some illegal item in the loan, then hire a lawyer and sue, otherwise you deserve exactly whatever outcome you gambled on, postive or negative). Note that I lost nearly all of my money in the stock market tech bubble where I was similarly "suckered" by the advice of many "experts", I did not whine to anyone (ok maybe my wife a bit), but I sure as hell did not ask anyone for a bailout!

[CD]

AAB is right, who knows what McCain will really do when he gets there....But this may force the issue on the other candidates if they see Mac Cain getting new votes on this one. So not a bad thing after all.....

[Lou]

The war in Iraq and Bush's horrible presidency made people forget why they might vote Republican in the first place. I thought for certain I'd vote Democratic this year but with Clinton and Obama (especially Clinton) spewing all these lies about these poor victims and how the taxpayer should bail them out, it makes me sick. I'm leaning towards McCain.

Oh yeah, I was against the Bear Stearns bailout, so no hypocrisy from me.

[adrian]

Are we sure he will do what he preaches?
Bush had said so and he gave up.
It's easy to say "no" now, but what about later when surrounded by advisers in the White House telling him to bail out the financial guys because of an imminent collapse?
BTW, this whole mess happened under Bush Administration, don't forget, voters!!!

[NoWayinLA]

puckhead: "Dubya is the king of free market laissez-faire economic policy."

Not true at all, actually. Dubya has been about as far from laissez-faire as it's possible to get in a country with our identity. Dubya is a fascist... not in that I'm-angry-so-I'll-throw-around-WWII-metaphors-
because-that's-what-people-do-on-the-internet kind of way, but in the actual sense of fascism as a political philosophy. The fascist approach to economic policy involved a pseudo-capitalist system in which the government played a very active role, partnering with corporate interests for the benefit of both. Corporate interests helped advance government programs, in exchange for special favors and loose regulation. The government fostered a corporate-friendly atmosphere, to gain compliance from the aristocracy, to grow the tax and manufacturing base (to be able to make and buy more weapons), and to foster scientific advances (to be able to make cheaper and better weapons). The ultimate losers, of course, are the consumers.

Checking the legacy of Bush:

Refusal of Kyoto treaty
Veto of clean air standards
Denial of global warming
Push for oil drilling in Alaska reserve
Haliburton
Blackwater
Explosion of no-bid contracts
The entire Iraq war
Cheap money policy
Bears & Stearns
Economic stimulus package
Vast program of deregulation

That's just the stuff I can think of on short notice. That's a series of extremely hands-on economic policy to me. For the last several years, business was great. How are the consumers doing?

[Windfall]

"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," he said.

Well, McCain has at least one principle that makes more sense than, My Grama is a typical white person and hence the moral equivalent of my ignorant, America-hating, racist spiritual mentor.

[are they crazy]

People - try reading the text of the entire speech - not just the headlines or soundbites. He also advocated saving banks to make sure the entire financial system doesn't go down and more. You can't judge someone by a poltical speech planned for the nightly network news. Look at his voting record on bankruptcy and deregulation of the banking industry. Look at his history as oneof the Keating 5 and the whole S&L bailout. That's the real problem with politics - a public too lazy to really investigate candidates and making decisions based on soundbites and spin.

[gary]

most of you are all sheep..................mccain can say anything to get your votes then change his mind. I voted for bush 2 times and I firmly believe "fool me once shame on you, fool me twice and shame on me" any democrat will out perform any republican. I remember the fear mongering that went on when clinton was elected. anybody wish for the good ole days of when clinton was in???? I sure as heck do and I have voted GOP since 1972. You are all sheep...bahhhhhhhhhh to you all.

[tony]

Before we heap too much praise on John McCain, let's not forget his ass-kissing of Charles Keating and Lincoln Savings in the 1980's.

John McCain, you aren't what you say. You are what you DO!
----

"McCain became enmeshed in a scandal during the 1980s when he was part of the so-called "Keating Five" - five United States Senators tied to the Savings and Loan crisis of that decade.[77] Between 1982 and 1987, McCain had received approximately $112,000 in political contributions from Charles Keating Jr. and his associates at Lincoln Savings and Loan Association, along with trips on Keating's jets.[77] Subsequently, in 1987, McCain was one of five Senators whom Keating contacted in order to prevent the government’s seizure of Lincoln, which was by then insolvent and being investigated for making questionable efforts to regain solvency; at Keating's request, McCain met at least twice in 1987 with federal regulators to discuss the government's investigation of Lincoln.[77]"

[sfvrealestate]

"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,"
"...But it is our duty to stay in Iraq another 100 years and spend $5,000 a minute while we're there..."
Oh, well, I guess it's ME that's missing a moral compass.

[mbob]

Anyone who wants a fresh perspective on the middle east can go to www.tikkun.com

It's a site dedicated to spiritual progressives.

As moderates, they tend to get it in the neck from extremists on both ends.

[SReno]

Jeugenen, thanks for showing the world why you should never vote for the radical left.. Why don't you come up with your own party, so the Republicans can make fun of that one instead of mine.

[Crazy Thought]

Very simple solution...

The government should give each home owner a choice:
- We can save your House, but you will permantly lose your Social Security and Medicare.
- We can save your Social Security and Medicare, but you will lose your House.

You are a fool to think the government has unlimited money and wants to bail out your dumb ass everytime you mess up!!! If you can't be responsible, then you should move back in with your parents so they can make important decisions for you.

[Truth2Pwr]

Oh give me a break! Since when has anything a politician says prior to getting elected borne any relevance to what they actually do once they're seated?

I figure we're all screwed no matter who we vote for, so at least with Obama my ass can get some articulately delivered inspirational sunshine blown up it while the world crashes down around me.

[paintballers for america]

Thank you Truth2Pwr..........you actually make more sense then anybody else and most likely will be the most correct.

[Bobc]

I agree. Someone tell me how they bought a house, when they couldn't afford the loan?
What were you told about the loan agreement? What did you not understand about the interest rates?

What we have in our country now, is a bunch of greedy business people and greedy, give- it- to -me- now, people.....how many of these loans went to illegals and flippers?

I'd rather tax payers money went to S.S. than bail out banks and people......after all it was politicians that raided S.S, over and over!

[NevadaGal]

McCain is only saying this now as to look like a true, red blooded, Republican. Anybody out West knows this guy's blue liberal butte is lying.

Dr. Ron Paul is the ONLY Republican since day one that has said that market forces (no bailout) must prevail. Greed marched is in to this mess and know it is time for us to march right back out.

[boz skaggs]

The Keating Five were five United States Senators, who were accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s. The five senators, John McCain (R-AZ) (the Republican nominee for the 2008 U.S. presidential election), Alan Cranston (D-CA), Dennis DeConcini (D-AZ), John Glenn (D-OH), Donald W. Riegle (D-MI), were accused of improperly aiding Charles H. Keating, Jr., chairman of the failed Lincoln Savings and Loan Association, which was the target of an investigation by the Federal Home Loan Bank Board.

After a lengthy investigation, the Senate Ethics Committee determined in 1991 that Alan Cranston, Dennis DeConcini, and Donald Riegle had substantially and improperly interfered with the FHLBB in its investigation of Lincoln Savings, while John Glenn and John McCain had been only minimally involved. The Committee recommended censure for Cranston and criticized the other four for "questionable conduct."

In October 1989 The Arizona Republic reported that in addition to campaign contributions, McCain's wife and her father had invested $359,100 in a Keating shopping center in April 1986, a year before McCain met with the regulators. The paper also reported that the McCains, sometimes accompanied by their daughter and baby-sitter, had made at least nine trips at Keating's expense, sometimes aboard the American Continental jet. Three of the trips were made during vacations to Keating's opulent Bahamas retreat at Cat Cay. McCain also did not pay Keating for some of the trips until years after they were taken, after he learned that Keating was in trouble over Lincoln. [1] Lincoln Savings and Loan's collapse is said to have cost taxpayers $3.4 billion

[mapletree]

Well said commentator Truth....

I am not a liberal at all, I used to be a Republican before they left me out on the sidewalk-still believe in limited government and so on but...

I don't agree with Obama, but the FEDERAL MACHINE is in place and that isn't going to change with either of the three stooges running for election. But at least Obama speaks English and has energy and the appearance of an honest streak (for a politician anyway). At the very least he will look presentable when he meets with foreign governments. He has manners and likability.

Let's get real here that's all we really have the power to vote on these days.

Peter, could we have these comments numbered as well. Thanks.

[Peter I]

Read McCain's statement carefully. He is saying absolutely no bailouts for individual mortgage holders. He is saying, however, that bailouts of massive corporations holding mortgage debt are A-OKAY where "systemic" instability could occur. If a brokerage or bank is "too big to fail" it has to be bailed out at taxpayers' expense.

Talk about Moral Hazard!! This is outrageous. Expect more Bear Stearns, boys and girls.