McCain on Fannie Mae/Freddie Mac

Posted: Friday, July 11, 2008 3:16 PM by Domenico Montanaro

From NBC's Kelly O'Donnell
McCain responded to questions about Fannie Mae/Freddie Mac yesterday during the pool news avail before the event that included Phil Gramm's comments. It was in Livonia, Mich.

VIDEO: CNBC's Erin Burnett debunks the confusion behind government involvement in Fannie Mae and Freddie Mac and explains the latest stimulus plan to rescue America's economy.

Q: On the possible federal intervention for Freddie and Fannie, are they too big to fail? Do you think there needs to be an intervention?

MCCAIN: Those institutions, Fannie and Freddie, have been responsible for millions of Americans to be able to own their own homes, and they will not fail, we will not allow them to fail. They are vital to Americans’ ability to own their own homes. And we will do what's necessary to make sure that they continue that function. Now having said that, previous evidence and previous information we've received clearly dictate that we have much more transparency in the way that they do business. And that way we can gain the kind of information that's necessary to have them function more effectively and efficiently.

Q: What about moral hazard?

EMAIL THIS

Comments

God help me again, I fully agree with McCain of this one. A bailout or recapitalization of these two agencies is essential to at least sustain this failing economy. Without a bailout the results would be catastrophic. He is absolutely right, millions of homeowners would be in peril and we cannot let these agencies fail. It would be the first step in the collapse our financial system.

The irony here is that Phil Gramm, the same Phil Gramm who said that problems with the economy were in effect psycholigical, lobbied Congress to de-regulate the mortgage industry. This de-regulation is the primary cause of the mortgage crisis in this country. Predatory loans were allowed in this unregulated environment.

McCain is right on a bailout but I'd love to hear his explanation as to why he does not support bailouts for homeowners who were victims of these predatory loans and is againt re-establishing federal guidlines to regulate the mortgage industry.

Interesting problem for the Senator.

Ira, Freehold, NJ (Sent Friday, July 11, 2008 3:21 PM)

Barack better get his comments on this issue out pronto. His little apologists around here won't know what they have to defend until he does so.

Burb The Vote (Sent Friday, July 11, 2008 3:22 PM)

Livonia, MI is the headquaters of Quicken loans.

The Truth (Sent Friday, July 11, 2008 3:27 PM)

Acutally..... McCain is right
(will wonders never cease?)

In this case, McCain is right in saying that they play a vital role in our economy and support home ownership

But, when we bail them out, we need to impose some new regulations of the financial markets

We can't allow financial institutions to be 'over extended' in their own debt to income
There really should be some penalties for predatory lending. Banks MUST insure that their borrowers can actually pay their mortgages.

Let's hear more from the Democrats on this subject
Hopefully, we can get some reforms past 'brain dead' Bush

Obama/Edwards '08
We can do this

MSierra, SF (Sent Friday, July 11, 2008 3:31 PM)

MCCAIN: I think that Freddie and Fannie have a vital role to fulfill and that they cannot and will not fail. There has to be much greater transparency in the way that they do business in order to insure that this kind of difficulties that they’re in is not repeated.

******************************************

Where are the reporters who will question McCain as to how he could have hired Gramm as his top economic advisor, given that he is responsible for, "this kind of difficulties"?

donna (Sent Friday, July 11, 2008 3:32 PM)

John McCain said nothing extraordinary - just common sense talk, and that was hard for him to do.

My 2 year old could had said the same thing he did with less trouble.

Thank you and GOD BLESS AMERICA

The - Democrat Soldier (Sent Friday, July 11, 2008 3:33 PM)

So...the Big Boys can screw up on the mortgage thing and get bailed out, but the little people can't. Another typical George Bush-clone answer. Who cares about morality, via cum dinaro!

Class Warrior, D.C. (Sent Friday, July 11, 2008 3:34 PM)

McCain is all wrong. He should bring together a group of experts (committee), wait and see what happens and then issue a statement of platitudes beginning with "I blame the Republicans/Democrats (delete as applicable)

Alan, NJ (Sent Friday, July 11, 2008 3:34 PM)

Barack better get his comments on this issue out pronto. His little apologists around here won't know what they have to defend until he does so.
Burb The Vote (Sent Friday, July 11, 2008 3:22 PM)
------------------------------------------------------

Maybe it's a little bit more complex then that bub...

Maybe if congress thought a little harder before ok'ing the use of force in Iraq and used a little sound judgement we wouldn't be in half the mess and extra trillion in debt we are in. Maybe if congress read through the bill that graham first passed that caused the deregulation of the lending sector we wouldn't be in this mess.

We regulate the quality of our food, our medicine, our firearms, booze, insurance, our healthcare, and how our employers treat us...

And yet people moan about regulation on an area that can just as easily ruin somebodies life if they are subject to predatory practices?

Why? well we kind of all know why now don't we. Put the regulation back into lending and energy...prosecute those responsible, and send these white collar traitors to jail.

GP chicago (Sent Friday, July 11, 2008 3:34 PM)

Of course McCain wants to provide a bailout when it was his Chief economic advisor Mr. "Whiner" Gramm that helped create the problem. Obama will respond to simply knee jerk response only heightens the potential crisis. I personally would like to see an expansive package of stimulus in congress to address this and the consumer home mortgage crisis. It is the awful economic policies of George Bush that caused this crisisI would hope he would step up to the plate with a proposal.

Terry, Great Plains (Sent Friday, July 11, 2008 3:37 PM)

"Barack better get his comments on this issue out pronto. His little apologists around here won't know what they have to defend until he does so. "
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
lol

Little apologists?

I love the way folks get all touchy when their baseless arguments about Senator Obama are exposed as lies.

Good times!

Nashville_fan (Sent Friday, July 11, 2008 3:38 PM)

Give McSame until Monday he will change his mind by then. Remember he doesn't work on the weekends. If he gets elected I hope nothing happens on the weekends because it will have to wait till Monday.

Iowa (Sent Friday, July 11, 2008 3:40 PM)

What, McLame had an opinion without having to check his voting record first?

Kate, Atlanta (Sent Friday, July 11, 2008 3:42 PM)

Could McCain's comments be more vague? Also, noticed when pressed further, he essentially said the same thing again with less words.

Rodney Hopper, Waxahachie, TX (Sent Friday, July 11, 2008 3:43 PM)

I find it hilarious that Liberals blame the Republicans for the current economic crisis. You can't blame a government PARTY for the fallout of people who earned $50,000 a year who somehow managed to purchase a $400,000 home with interest only payments for 3 years. Every person in America has the responsibility to READ the loan documents, etc BEFORE they sign the contract. Yes, there should have been more predatory lending guidelines in place, but to blame the government for the fallacy of hundreds of thousands of Americans is ridiculous. What ever happened to personal accountability?

How many of you stood in line today to get your new IPhone at $200-$300 each?

Beth, Lewisville TX (Sent Friday, July 11, 2008 3:47 PM)

Burb The Vote (Sent Friday, July 11, 2008 3:22 PM):

Burb:

Why should Obama get his comments out right away about this issue? Obama thinks about things before blurting out responses unlike some Presdiential candidates we know. Obama will get out some comments when he is good and ready. At least we can be assured he won't come out with some ditty like "bomb, bomb, bomb, bomb, bomb Fannie Mae and Freddie Mac", or some stupid comment like Fannie Mae and Freddie Mac are just whining like the American people.

C A, Tuscaloosa, AL (Sent Friday, July 11, 2008 3:47 PM)

unregulated capitalism is as dangerous as any terrorist organization, bail the financials out then properly regulate them

MK,MO (Sent Friday, July 11, 2008 3:47 PM)

Burb The Vote, reread that little piece again. It doesn't sound like McCain has a clue as to what's going on or how to even articulate an answer.

That sounded just like Bush, first when asked a question that you don’t have a clue as to what it is, repeat the question and make sure to include the names of the subject several times, (this time Freddie and Fannie). Try to making repeating the question sound like an answer. Watch the people around you for queues as to how important this must be and say “it’ll be hard work, real hard, but we can do it”. But never offer any kind of in depth answer, well basically because he can’t.

Lord help us if this man becomes the next POTUS.

Jerry, Iowa (Sent Friday, July 11, 2008 3:48 PM)

http://twocanpete.blogspot.com
While the McConomist tells us to bail out the banks his campaign advisor Turtle Boy calls us a bunch of whiners. We need to outsource these suckers!

twocanpete (Sent Friday, July 11, 2008 3:49 PM)

Did anyone listen to that proposed stimulus package in the video?

The new New Deal.

Think you'll get that from a Republican administration?

McCan't (Sent Friday, July 11, 2008 3:54 PM)

Now they should ask McCain what he intends to do about foreclosures... that ought to make him squirm like he did when talking about Viagra/birth control

ya know (Sent Friday, July 11, 2008 3:57 PM)

Roofin Reality, Houston, Tx. (Sent Friday, July 11, 2008 1:31 PM)

*****************************************

Re: MARKET DROPS BELOW 11,000

Nothin but net! By the time I got to the 'Psychologist', I was laughing out loud.

Thank you.

donna (Sent Friday, July 11, 2008 4:01 PM)

MY QUESTION IS THIS,WHY IS A GALLON OF GAS IN CAL. AND A GALLON OF GAS IN KY. NOT THE VERY SAME PRICE? THERE IS NO REASON WHY GAS IN EACH AND EVERY STATE IS NOT THE SAME PRICE, EXCEPT FOR THE GREED OF THOSE OF US THAT HAVE...........WE ARE OUR ON WORST ENEMY.

STEVE JOHNSON BIG SPRINGS KY. (Sent Friday, July 11, 2008 4:07 PM)

McBush gets a D rating from( IAAV) Iraq & Afghanistan Veterans (of which my brother is one)
McBush gets a 20% rating from (DAV) disabled American Veterans

Obama gets a B+ rating from Iraq & Afghanistan Veterans
Obama gets a 80% rating from (DAV) disabled American Veterans

McBush you have what perfect rating, from EVERY Veterans organizations????? If Americans are ok with this lier, we have real issues!!!
______________________________________________
Reg. the mortgage co. it Sounds like crisp bacon to me and I don't mean turkey, Flip Flop McBush, Nice to hear you agree with some of us on this, go further and help Americans who were victimized by predatory lending!

Javier Q, NY (Sent Friday, July 11, 2008 4:09 PM)

So this is the All-Holy Free Market at work, huh?

Jason R, Los Angeles Ca (Sent Friday, July 11, 2008 4:30 PM)

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