McCain Claims Federal Government Shouldn’t ‘Reward’ Irresponsible Banks — Except Bear Stearns
McCain Claims Federal Government Shouldn’t ‘Reward’ Irresponsible Banks — Except Bear Stearns
Aided by “a large flat screen monitor and two side panel teleprompters,” Sen. John McCain (R-AZ) yesterday laid out his response to the housing crisis, proclaiming that the government should not “bail out” big banks or borrowers if they act irresponsibly:
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.
Watch it:
In contrast, when McCain was asked whether the Federal Reserve went too far in extending a $30 billion credit line to finance the takeover of Bear Stearns by JPMorgan. “It’s a close call, but I don’t think so,” he said.
McCain is unwilling to criticize actions by the Bush administration, despite his rhetoric and alleged principles. Bear Stearns was the second-biggest underwriter of U.S. mortgage bonds and acted “irresponsibly” for years. According to McCain’s logic, the Fed should not have bailed out this institution:
Absent CEO: In 2007, then-CEO James Cayne was “playing bridge and golf” while its hedge funds which invested heavily in mortgage securitiescollapsed, missing 10 critical days last July. He also allegedly smoked marijuana after bridge tournaments.
A source of the crisis: Stearns provided “munificent lines of credit to public-spirited subprime lenders like New Century (now bankrupt). It is also the owner of EMC Mortgage Corporation, one of the most aggressive subprime mortgage servicers out there.”
Putting the public at risk: The firm tried to unload “toxic” mortgage-backed securities onto the public last summer in “an initial public offering of a financial company called Everquest Financial.”
McCain has once again shown that he is willing to abandon his so-called “straight talk” in order to stay in line with the Bush administration’s agenda.
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The straight talk express has fallen off the tracks and is on its side with its wheels spinning.
March 26th, 2008 at 2:07 pm“My friends, I am in dire need of campaign funding. Because crooked bankers have tons of cash, I will retreat immediately from anything I said or did in the past to curry their favor, and secure from them the money that no one else seems to want to give me.”
March 26th, 2008 at 2:08 pm“Sen. McCain, any comment on your friend, Charles Keating….?
March 26th, 2008 at 2:08 pmIn contrast, when McCain was asked whether the Federal Reserve went too far in extending a $30 billion credit line to finance the takeover of Bear Stearns by JPMorgan. “It’s a close call, but I don’t think so,” he said.
Ummm , no Senator McSpinningWheels……..You just don’t think at all…..Ever.
March 26th, 2008 at 2:10 pmThat’s what you get for thinking, McSame.
March 26th, 2008 at 2:10 pmIts a “collectivist” myth that businessmen, left to their own devices, “would attempt to sell unsafe food and drugs, fraudulent securities, and shoddy buildings….it is in the self-interest of every businessman to have a reputation for honest dealings and a quality product.”
- Alan Greenspan, in a 1963 essay for deregulation guru Ayn Rand’s newsletter
** Why hasn’t Greenspan fled the country in shame for the damage he’s done?
March 26th, 2008 at 2:10 pmJohn McCain: charter member of the Keating 5.
March 26th, 2008 at 2:10 pm.
All aboard the straight McSpeak Express… My friends!
.
March 26th, 2008 at 2:13 pmDoes Ben Bernanke Have to Go?
by Dean Baker from Commondreams dot org
Feb 20 2008
This is a question that members of Congress should be asking right now. It is becoming increasing clear that we are facing the worst financial meltdown since the Depression, and Mr. Bernanke was caught asleep at the wheel.
In testimonies before Congress and other statements Bernanke repeatedly assured the public that there was no bubble in the housing market, arguing that fundamental factors explained the unprecedented 70 percent increase in inflation-adjusted house prices from 1996 to 2006. Such reassurances undoubtedly helped sustain the bubble until it finally reached the bursting point last year.
Even after the bubble began to burst, Mr. Bernanke failed to recognize the seriousness of the problem. As recently as last July, he told Congress that, “for the most part, financial markets have remained supportive of economic growth,” failing to see the financial tsunami that was about to engulf the economy and push it into a recession. As the successive waves have hit the economy, Bernanke has been consistently behind the curve.
March 26th, 2008 at 2:13 pmOK. So the guy smoked some dope after a golf outing. Welcome to America. It’s ludicrous to suggest that’s why Bear Stearns crashed!
March 26th, 2008 at 2:13 pmYeah, blame it all on marijuana.
March 26th, 2008 at 2:14 pmI 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.
And this was said by one of the Keating 5 with a straight face. You gotta hand it to McBush, sometimes he’s got balls.
March 26th, 2008 at 2:15 pmBilbo Hussein Baggins Says:
March 26th, 2008 at 2:15 pm
And this was said by one of the Keating 5 with a straight face. You gotta hand it to McBush, sometimes he’s got balls.
Yeah , too bad for McSenile they’re Chimpy’s , and they’re hanging off his chin………..
March 26th, 2008 at 2:18 pmAnd the free pass given to the (cough*) Straight Talk Express to pass thru the tolls and HOV lanes of America begins.
RIP
March 26th, 2008 at 2:19 pmSGT Stephen R. Sherman
C CO 1-5 In (STRYKER)
KIA 3 Feb 2005
Mosul, Iraq
Hahahahahahaha!!! It won’t be long before this whack-o-loon falls flat on his face. McTool has way too many puppeteers pulling way too many strings. Get ready for the sequel, Reefer Madness, Part II.
March 26th, 2008 at 2:19 pmCorporations get “bail outs”
While in the inner city its called welfare and it must be stopped.
RIP
March 26th, 2008 at 2:20 pmSGT Stephen R. Sherman
C CO 1-5 In (STRYKER)
KIA 3 Feb 2005
Mosul, Iraq
10&11 re: the pot point - we live in a country where you have to pee clean to get the lowest-paying, dirtiest, riskiest jobs, or any damned job for that matter, but some bastard like that can light up with impunity, and collect a paycheck annually that’s more money than most will make in a lifetime.
That’s a BIG problem for me, metaphorically and literally.
I don’t think TP was trying to indict the guy on the grounds he’s a toker, but to point out the rank hypocrisy of the standards the haves and the have-nots are held to.
March 26th, 2008 at 2:22 pmcaredmanI Says:
March 26th, 2008 at 2:20 pm
?????
That’s the most intelligent comment this poster has ever made.
March 26th, 2008 at 2:23 pmtombaker Says:
March 26th, 2008 at 2:08 pm
______________
One small correction, tom, if I may?
“My friends, I am in dire need of campaign funding. Because crooked bankers have tons of YOUR cash…”
There… better… no?
March 26th, 2008 at 2:24 pmHave you even heard one person on a coporate media network say that we should let Bear Stearns collapse and prosecute and imprison all those involved?
Me neither.
I’ve even heard progressives repeating the mantra that Bear Stearns is “Too Big to allow to Fail”. Then they cite what they heard on t.v…that the entire banking system would crumble.
What a bunch og bullcr*p.
The Fed should be working on a plan to bail out the victims of this crime: those “Steered” into sub-prime mortgages. If the two million victims are saved they’ll find new banks which will fill the gap by Bear Stearns disappearance.
Bailing out the criminal banks will only delay the pain which will eventually come. Meanwhile millions of Americans, the victims of the crime, are living in their car.
Commonsense stuff. Prosecute and imprison the criminals. Save the victims. And not a damn person on t.v. has said this during the entire month.
March 26th, 2008 at 2:27 pmAh, the American ruling class bailing out the ruling class banks and investment houses. Heck of a bailout, huh? This whole mess was created and made worse by the Bush gangster regime, which stood by a smirked as the mortgage lenders, banks and investment houses repackaged shaky and sub-prime mortgages into complicated and obscure financial packages that we then sold and resold. And now the master economist McCain is favoring protecting the mortgage lenders and mortgage repackagers (the criminals) and not the victims (the home buyers)…
The federal government needs to order a 50% across the board cut in all bank credit card rates. That single step would do more to help the average American that this other penny-ante stuff that the Bush regime has done or is planning on doing…
March 26th, 2008 at 2:32 pmMebbe this is just too simplistic of a solution…
For so many of these mortgage bankers and homeowners who are in trouble… why don’t the bankers simple renegotiate mortgage terms the homeowners can live w/?
Isn’t the problem that so many of the folks in trouble over are those nasty ARMs that suddenly increased their interest rates or demanded a balloon payment?
Why don’t the bankers just make it possible for the homeowners to stay in the houses? Yes, the bankers might not make AS MUCH money, but they also wouldn’t wouldn’t have so many defaults on their hands, and be stuck w/ houses they can’t move.
I dunno… mebbe that’s too simple. Anybody understand this mess better?
March 26th, 2008 at 2:33 pmFence sitting, hypocritical, double talking, republican canidate. typical!
March 26th, 2008 at 2:33 pm“Even after the bubble began to burst, Mr. Bernanke failed to recognize the seriousness of the problem. As recently as last July, he told Congress that, “for the most part, financial markets have remained supportive of economic growth,” failing to see the financial tsunami that was about to engulf the economy and push it into a recession. As the successive waves have hit the economy, Bernanke has been consistently behind the curve.”
Add Karma Recommend (1) |
Bernanke has just been doing his job. Exactly what he’s told to say, and exactly when he’s supposed to say it.
March 26th, 2008 at 2:35 pmWhat are they going to do, arrest him? Not likely, huh? He’ll just get fired, keep all the money he’s made, and show up on FOX doing the market report.
Whoops, McCain accidently put in his papers to run for President of the United States. Must be a clerical error, he’s actually running for President of Corporate America.
March 26th, 2008 at 2:39 pm“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.”
_______________________________________
TRANSLATION: However, we SHOULD bail out big banks. Because they continually funnel a portion of their profits our way to ensure we keep our phony-baloney jobs (apologies to Mel Brooks), it’s in our best interest to ensure they continue to make obscene profits. Small borrowers, however, are on their own — they don’t impact our gravy train in the slightest.
March 26th, 2008 at 2:44 pmIt’s back again. Let the flagging begin.
March 26th, 2008 at 2:48 pm” I have always been committed to the principle that it is not the duty of the FEC to bail out bankrupt Presidential campaigns with public financing and then complain when the campaign refuses to abide by the terms of the loan and election rules”–John McCain’s evil twin.
March 26th, 2008 at 2:49 pmcaredmanI Says:
March 26th, 2008 at 2:44 pm
I want to hear about savior Obama’s wonderful policy ideas. So far all I’ve heard is a bunch empty talk. Why doesn’t Toilet Paper ever post anything about the Dem’s presidential hopefuls? Could it be there a little biased?
“Empty talk” (whatever the hell that is or means) , is still much better than stupid talk , which you can personally relate to , and which is all that emerges from the wrinkled old imbecile’s mouth……….
March 26th, 2008 at 2:53 pm28 - go check out his campaign website then, sherlock.
March 26th, 2008 at 2:54 pmIf only there was some place out there where I could actually read Obama’s policy ideas instead of just “hearing” about them? If only there was some means available to look them up somehow? Can anyone tell me if such a thing exists? Wouldn’t it be neat if it did?
March 26th, 2008 at 2:55 pmClear case of flip flop. “No help, but not bad to help”.
John, Is this the maverick in you unable to stay focused? You can’t have it both ways.
March 26th, 2008 at 2:55 pmMcBush ain’t no different than any other RePUG running for president as far back as Reagan. he is full of horse pucky and he has no idea of where the smell is coming from. If you can’t say that taxes need to be lowered so the trickle down works, tell us how entitlements are killing the nation.
March 26th, 2008 at 2:57 pmThe Republic of Stupidity Says:
March 26th, 2008 at 2:48 pm
Flagged…AGAIN
March 26th, 2008 at 2:58 pmGuess who greased McCain’s palm recently…
March 26th, 2008 at 2:58 pmThis guy is no rocket scientist, that’s for sure. He thinks it’s ok to spend one hundred trillion dollars in Iraq, which is 1 trillions dollars a year for one hundred years, but it’s not ok to spend any money to save our entire finanical system. One thing is clear, that’s conservative thinking all right. They think it’s right to give Israel billions of dollars a year with no return on our investment. I could agree with him if we were getting oil for the trillion dollars a year we spend in Iraq. How can a country (The United States) be fighting for oil but not getting any of it?
Like most Republicans McCain failed to think things through before he opened his mouth about the economy. If he gets elected and does nothing about the economy we won’t have to worry about pulling our troops out of Iraq, because we won’t be able to afford to bring them home. When the second Great Depression hits the military won’t be able to pay the troops much less pay the cost of bringing them and their equipment home. I saw several of the top economist in this country say that we could be and are probably headed for a DEPRESSION. One of them advised Americans to slowing withdraw our money out to the banks before they collapse and to buy Gold and other metals like Silver.
Now I’m no rocket scientist myself, but these men are paid losts of money to advise fortune 500 companies and if they say the sky is falling, we’d better believe it. So for all of the idiots out there who want a depression just go right ahead and elect John McCain. At least either Democrat will do something to try to stop us from destroying the economy by doing nothing. Republicans keep saying, “make the tax cuts permanent”, but that’s what got us into this mess in the first place. Don’t believe it? Then think about this: If you put less money into your checking account but spend twice as much as usual what will happen? That’s right, you’ll start bouncing checks and your account will be closed. That’s exactly what a depression is, the countries accounts collapse and the money becomes like bad checks worthless.
March 26th, 2008 at 2:59 pmhttp://www.barackobama.com/index.php
caredmanl, you have been informed.
March 26th, 2008 at 2:59 pmTotally o/t but…
“President George W. Bush speaks to reporters with Alton Jones, 2008 Bassmaster Classic Champion, and Judy Wong, 2008 Women’s Bassmaster Tour Champion Tuesday, Mar. 25, 2008, in the Oval Office at the White House.”
Bassmasters, eh?
March 26th, 2008 at 3:01 pmYup, McStraight Talk Express lost some wheels from this latest comment. He says to the American people: Government shouldn’t bail you out from the housing crisis. Yet, government bailed out Bear Stearns. He talks from both ends of the hindparts. He doesn’t give one rat’s ass about the American people. He would rather throw the last life preserver to the big corporations than to the American people.
March 26th, 2008 at 3:04 pm5th Estate Says:
March 26th, 2008 at 3:01 pm
Totally o/t but…
“President George W. Bush speaks to reporters with Alton Jones, 2008 Bassmaster Classic Champion, and Judy Wong, 2008 Women’s Bassmaster Tour Champion Tuesday, Mar. 25, 2008, in the Oval Office at the White House.”
Bassmasters, eh?
At FAUX GNUS headquarters , Karl Rove ‘hosted’ Assmaster Classic Champions , Jeff Gannon and Ted Haggard………..
March 26th, 2008 at 3:06 pm42 -If you know that if it sounds too good to be true it is, then how in the hell did you fall for Bush’s BS? How could you believe we can go turn Iraq into Australia Jr??
you’re the big winner!!! your tootsie-pop wrapper hat is in the mail.
idiot.
March 26th, 2008 at 3:13 pmHas anyone just asked how much of a contribution it takes for him to blow someone? I say this because every action, statement, dictate, prediction, etc.. that comes from the old man sound like a pimp or a hooker talking to business associates.
March 26th, 2008 at 3:21 pm44 - Nine dollars. Or 3 Euros.
March 26th, 2008 at 3:22 pm5th Estate Says:
March 26th, 2008 at 2:55 pm
If only there was some place out there where I could actually read Obama’s policy ideas instead of just “hearing” about them? If only there was some means available to look them up somehow? Can anyone tell me if such a thing exists? Wouldn’t it be neat if it did?
___________________________________________
Since you asked, here’s something that should interest you.
http://www.barackobama.com/ pdf/ ObamaBlueprintForChange.pdf
It’s a bit long, but if you have a printer, you can print it out and read it as you wish. It’s well organized, so you can look up any issue you are particularly interested in if you don’t want to chew on the whole thing.
If you’re reading it online, scroll to page 10 to get to the “meat” of it — most of the beginning is beautifully formatted covers, table of contents, introduction, etc.
In fairness, I will point out that Hillary also addresses a number of issues on her website, but only some of the issues outline what she plans to do — the rest just say why she is qualified to handle them. And she hasn’t folded any of her plans or positions into a PDF like this.
McCain also has issues listed on his website, but like Hillary, his are also a mix of speeches and actual plans.
What’s interesting to me is looking at what each candidate chose to include on their site as an “issue”. Obama’s and Clinton’s lists of issues are pretty similar, but McCain’s is a bit different. He’s got all the GOP required topics such as sanctity of life, second amendment rights, tax cuts, and several points dedicated to beating the rest of the world up to ensure our “security” — but his weirdest issue was “America’s Space Program” (???).
March 26th, 2008 at 3:26 pmI seriously doubt caredmanl would have the spine to stand up for Bush and discuss facts.
March 26th, 2008 at 3:27 pmmisshusseinmolly - I’m thinking that the space program talk is partly because of all the space-race stuff we’re hearing now (space - the new frontier for empires) and also because with NASA’s current “dual-use” program they’re kind of privatizing it all and plus there’s a new emphasis on a military component to space projects.
But, then again, I suspect that I’m more cynical than you are.
March 26th, 2008 at 3:40 pmI find it awfully telling that all you can read of the banner hanging behind McCain are the words “Paid for, Inc.”
March 26th, 2008 at 3:46 pmNice catch Neoke!
March 26th, 2008 at 3:47 pmThe Republic of Stupidity Says:
Why don’t the bankers just make it possible for the homeowners to stay in the houses? Yes, the bankers might not make AS MUCH money, but they also wouldn’t wouldn’t have so many defaults on their hands, and be stuck w/ houses they can’t move.
I dunno… mebbe that’s too simple. Anybody understand this mess better?
That’s a question I asked also. It makes sense to me, but what do I know. Another question I have is how the Feds can lend our tax monies to these corporations without Congressional approval? I thought that Congress was in charge of how our tax dollars are spent.
March 26th, 2008 at 3:52 pmThat’s very funny, Neoke.
Perhaps that photo was chosen specifically for that.
March 26th, 2008 at 3:52 pmhellinabucket Says:
March 26th, 2008 at 3:27 pm
I seriously doubt caredmanl would have the spine to stand up for Bush and discuss facts.
It seems to have a two sentence limit in it’s ability to write and they rarely make much sense. It is beyond a doubt the lamest troll to have ever shown up on TP. I don’t understand why TP keeps pulling it’s posts, but allows it to stay.
March 26th, 2008 at 3:59 pmBilbo Hussein Baggins Says:
March 26th, 2008 at 3:52 pm
That’s a question I asked also. It makes sense to me, but what do I know. Another question I have is how the Feds can lend our tax monies to these corporations without Congressional approval? I thought that Congress was in charge of how our tax dollars are spent.
______________
For all we know, maybe some saner lenders are doing this. Maybe we’re being too simplistic, or just too reasonable. Dunno. I’m a little surprised no one has tried to explain this better here. No experienced mortgage brokers around today?
I can understand why homeowners who bit off more than they can chew are in trouble, but what did the really big investment banks do? I get the feeling they were trading these bundles sub-prime mortgages and using them to inflate their balance sheets, which in turn allowed them to loan even more money out.
In effect, were they saying, “Hey, I’ll take your bad check and pretend it’s okay if you take my bad check and pretend it’s okay, and we can both make it look like we have more money than we really do”…?
Dunno.. did they over-leverage themselves, and now that the underlying securities - the bundles of bad mortgages - are really starting to smell bad, it’s having a domino effect in the financial world?
March 26th, 2008 at 4:00 pmNot that it will do much good,but this is for 1SCAREDMAN.
Lincoln Savings and Loan
The Lincoln Savings led to the Keating five political scandal, in which five U.S. senators were implicated in an influence-peddling scheme. It was named for Charles Keating, who headed Lincoln saving and made $300,000 as political contributions to them in the 1980s. Three of those senators - Alan Cranston, Don Riegle, and Dennis DeConcini - found their political careers cut short as a result. Two others - John Glenn and John McCain - were rebuked by the Senate Ethics Committee for exercising “poor judgment” for intervening with the federal regulators on behalf of Keating.
Silverado Savings and Loan
Silverado Savings and Loan collapsed in 1988, costing taxpayers $1.6 billion. Neil Bush, son of then Vice President of the United States George H. W. Bush, was Director of Silverado at the time. Neil was accused of giving himself a loan from Silverado, but he denied all wrongdoing.
The US Office of Thrift Supervision investigated Silverado’s failure and determined that Bush had engaged in numerous “breaches of his fiduciary duties involving multiple conflicts of interest.” Although Bush was not indicted on criminal charges, a civil action was brought against him and the other Silverado directors by the Federal Deposit Insurance Corporation; it was eventually settled out of court, with Bush paying $50,000 as part of the settlement, as reported in the Washington Post .
Silverado’s collapse cost taxpayers $1 billion.
There’s your GOP 1SCAREDMAN, aren’t you proud???
March 26th, 2008 at 4:03 pmBilbo,
I must admit I do like how you have relegated caredmanl to an “it”.
March 26th, 2008 at 4:09 pmAnd this is why the banks DO NOT CARE about the little man. Because they know our crooked polticians like McSame will bail them out and let the little guy twist in the wind.When you only vote on small wedge issues like gay marriage and gun rights you lose sight of the bigger picture, and we get 8 years of bush/co!
March 26th, 2008 at 4:12 pmSenile old fart. Dementia is setting in rapidly. Lock the angry old bastid up where he can’t hurt himself or anyone else, please!
March 26th, 2008 at 4:20 pmWhat happened the the next line of the speech?
Seems to me that Bear Stearns meets that standard.
March 26th, 2008 at 6:33 pmOkay. Again, another point of view. I do NOT think that the government should bail out the banks or the borrowers. I lost my home because we were lied to by the finance company and got a loan with a flexible interest rate. They were wrong for lying, but we were foolish for buying. Our interest rate went up to 11 1/4 percent. We tried to get the home refinanced (which we could not because the market had fallen), we told mortgage company to shove the house where the sun don’t shine and we RENTED a house. We work, we don’t live in our car. I do not expect for anyone to bail me out. I am a grown adult, not a welfare baby. And, neither is the bank.
March 26th, 2008 at 6:48 pm“My friends….”
March 26th, 2008 at 6:48 pmSo this campaign law breaker wants to hold some rule of law on those that were victims of Bush Adm approved predatory lending.
And those Bear Stearns executives. What of their pay and golden parachutes?
March 27th, 2008 at 1:59 amI take it the implication here is that any normal person would smoke weed before enduring a bridge tournament. What a freak.
March 28th, 2008 at 5:47 am