UPDATE - McCain Economic Plan: Too Little, Too Late Says DNC

McCain Reverses Himself, Rehashes Other People's Proposals, and Offers No Real Hope

WASHINGTON, April 10 /PRNewswire-USNewswire/ -- The following was issued by the Democratic National Committee:

McCain's new "plan" to help America's middle class offers no new ideas and no real help. He again demonstrates how out of touch he is with Americans by proposing an investigation that has been going on for two months and unveiling a mortgage proposal similar to the one long-suggested by most Democrats and Republicans alike. The plan also represents a dramatic reversal from his old stance just last week that no government intervention was needed. McCain similarly proposes a new worker training program with no details on how he will pay for it and offers a plan to use the Strategic Petroleum Reserve to control gas prices -- an option he voted against in 2005.

McCain's Mortgage Reversal Includes Actions Already Underway And Already Widely Supported

Call For A Federal Investigation: Suggesting Something That Started Two Months Ago

Today: McCain Proposes DOJ Task Force. "I am also calling for an immediate DOJ task force to aggressively investigate potential criminal wrongdoing in the mortgage lending and securitization industry. If there were individuals or firms that defrauded innocent homeowners or forged loan application documents, then the punishments of the market are not enough, and they must answer for their conduct in a court of law." [McCain remark excerpts, 4/10/08]

When A Joint Investigation Has Been Going On For Months. In mid-February, the FBI announced that "they are conducting criminal investigations of 16 companies, while their partners at the Securities and Exchange Commission are probing nearly two dozen more...FBI agents are working hand-in-hand with the SEC, which has enlisted 100 lawyers as part of its nationwide subprime mortgage working group and which has made criminal referrals to other government agencies." [Washington Post, 2/14/08]

IRONY ALERT: McCain Advisers Were Lobbyists For WORST Predatory Lender. Two of John McCain's "top advisers" - John Green and Wayne Berman - "were recently lobbyists for" Ameriquest Mortgage, "a notorious lender in the mortgage meltdown." Ameriquest, which has been described as "the most blatant and aggressive predatory lenders out of everybody," was "forced to settle suits with 49 states for $325 million." According to lobbying disclosure forms, Berman and Green lobbied Congress on the "Responsible Lending Act," a measure sought by predatory lenders which would "gut existing strong [anti-predatory lending] laws in 24 states." According to the Center for Consumer Affairs, while the legislation "would create uniform federal guidelines for predatory lending laws," it would also supersede far tougher "laws on the books in many states." [NY Daily News, 3/31/08; Consumer Affairs, 1/12/06; US Banker, 2/06; Federalist Group/Ogilvy Government Relations Ameriquest Lobbying Records, 2005 - 2007, Senate Office of Public Records]

McCain's Reversal On Restructuring Loans With Federal Help

Today: McCain Says "Power of Government" Now Needed. In a speech addressing the mortgage crisis, McCain offered a government program that "supports [homeowners] in getting a new mortgage that they can afford." McCain presented few specifics on what he calls his "HOME Program," but he said that he would "combine the power of government and the private sector" to assist struggling families facing foreclosure by offering the opportunity for homeowners to trade their "burdensome mortgage for a manageable loan that reflects the market value of their home." [McCain speech excerpts, 4/10/08]

Last Week: McCain Opposed Government Intervening on Behalf of Homeowners. McCain, in his speeches on the mortgage crisis, has repeatedly expressed reluctance of government intervention to assist homeowners. McCain has suggested "having lenders and borrowers sit down together" and "convene a meeting of the nation's accounting professionals to discuss the current mark to market accounting systems" to address the mortgage crisis. McCain economic advisor Carly Fiorina said that instead of government intervention that McCain would instead, "ask industry to sit down with [borrowers] one at a time...and that's the hard work, borrower by borrower, that needs to get done right now, and a big government program isn't going to fix that." [ABC "Good Morning America," 4/1/08; McCain Economic Advisor Conference Call, 3/27/08]

Restructuring Loans With Federal Help: Welcome To The Conversation

Today: McCain's "New" Plan Will Trade Existing Mortgages For New Ones. McCain will give "deserving people the chance to trade a burdensome mortgage for a manageable loan reflecting the market value of their home." [Associated Press, 4/10/08]

But This Has Already Been A Key Part Of Every Proposal: McCain's plan is along the lines of a portion of the proposals long floated by many others. "All of the proposals would allow the Federal Housing Administration to insure refinanced mortgages if lenders agree to cut the outstanding principal on the loan to reflect the reduced value of a property." In fact the central question in this area is the details - how many mortgages, for how much, and who is eligible. And McCain hasn't provided any of those crucial details. [CQ Today, 4/9/08]

Both Democratic Presidential Candidates Have Already Proposed This. Senator Clinton and Senator Obama both have plans to use Fannie Mae, Freddie Mac and the Federal Housing Administration to help refinance more mortgages [http://www.hillaryclinton.com/news/release/view/?id2730;
Administration, Fed, Congress Also Agree. In late February, Fed Reserve chief Ben Bernanke suggested "legislation to overhaul the Federal Housing Administration to 'provide a vehicle for refinancing of some of these mortgages.'" This is also a key part of the plan offered by House Financial Services chairman Barney Frank and part of the Bush administration plan. [CQ Today, 4/9/08]

All Over The Map On Strategic Petroleum Reserve

2000: McCain Says He Would Tap SPR. "Republican presidential hopeful John McCain said Wednesday he might be willing to release oil from the nation's Strategic Petroleum Reserve to ease prices for consumers. McCain, campaigning in Washington State after his blockbuster victories in Michigan and Arizona primary elections on Tuesday, said he would give 'serious consideration' to releasing some of the stockpiled oil. Lawmakers in the U.S. Senate and House have pressed the White House to tap the oil reserve to put more supplies into the market and moderate soaring heating oil prices. President Bill Clinton has repeatedly said he had not ruled out using the stockpile, but would first try energy diplomacy with Saudi Arabia and other key oil producing nations." [Reuters News, 2/23/2000]

2005: McCain Votes Against Resolution Approving Use Of SPR To "Manage Gasoline Prices." At a time when oil was $50 a barrel, McCain voted to table (kill) a Sense of the Senate Resolution which found that "the Administration's policy of filling the SPR despite the fact that the SPR is nearly full has exacerbated the rising price of crude oil and record high retail price of gasoline," and ordered a release of oil from the SPR. [Congressional Record 6/20/2005, p S6809; 2005 Senate Vote 147]

2008: McCain Now Proposing Using SPR To Reduce Prices; But Has Not Joined Legislation. "McCain also mentioned proposals to curb rising gas and food prices. As part of that proposal, he said the United States should stop adding to the Strategic Petroleum Reserve to lessen worldwide demand for oil in an attempt to reduce its price...All of the Senate's 49 Democrats - including Clinton and Obama - and its two independents have called for temporarily halting the SPR deliveries. The reserve now has 701 million barrels of oil, enough to replace 58 days of imports. Sen. Byron Dorgan, D-N.D., who says the deliveries make no sense when oil prices are as high as they are, has offered legislation directing a stop to the shipments and said Thursday he hoped McCain would support the bill." [Associated Press, 4/10/2008]

McCain Offers Yet Another Revenue Reducing Policy, With No Word On How He'll Pay For It Or What It Will Cost

Today: McCain Proposes Another Plan To Reduce Revenues Without Explaining How He'll Pay For It. "I propose that we build a new system so that as women and men work, their taxes help to build up a buffer account against lost earnings. Then, if they are unfortunate enough to lose a job, they will be able to better meet their obligations." [McCain speech excerpts, 4/10/08]

But Extending The Bush Tax Cuts Would Reduce Federal Revenue By $2 Trillion Over 10 Years. "One of the main challenges facing the next president involves whether to extend a series of tax cuts set to expire in three years...The Republicans want to extend all the cuts. According to the Tax Policy Center, that would reduce federal revenue by $2 trillion over 10 years." That's before the cost of any new proposals. [CNN Money, 2/22/2008]

McCain's Reversal On Job Training

Today: McCain Claimed He Was An Advocate For American Workers. "Job security may well be the most pressing problem of these challenging economic times. Right now, jobs are in jeopardy and the government backstop is not up to the task. For over a year, I have been calling for a comprehensive reform to our unemployment insurance and displaced worker programs." [McCain speech excerpts, 4/10/08]

Last Month: McCain Skipped A Vote On Worker Training To Attend A Campaign Fundraiser. In March 2008, McCain skipped a vote on a worker training program, which would specifically "improve the training of manufacturing workers." McCain instead attended a $1,000-a-plate fundraiser in Philadelphia. [2008 Senate Amendment 4155 to S.Con.Res.70, agreed to in Senate by Voice Vote; Thomas.loc.gov; NBC 10 Philadelphia, 3/13/2008, http://www.nbc10.com/politics/15582609/detail.html ]

2007: McCain Would Take Money From Programs Designed To Retrain Workers. McCain said "he would reallocate money spent on existing retraining programs to help pay for his proposal" of an unworkable wage insurance. [Detroit Free Press, 12/21/2007]

2003: McCain Opposed Extending Federal Unemployment Insurance Benefits for Jobless Workers. McCain voted against extending the expiring Temporary Emergency Unemployment Compensation program for another six months, with an additional 13 weeks of benefits for workers who exhaust their federal benefits while looking for a new job. The amendment also called for unemployment benefits for low-wage workers and workers seeking part-time employment. At the time the program was due to expire, more than 1 million long-term jobless workers were nearing the end of their state benefits. [S. 1054, Vote #152, 5/15/03]

2002: McCain Voted Against a Pilot Program to Provide Low-Interest Loans to Workers in Job Training or Assistance Programs. In 2002, McCain voted to kill an amendment requiring the Labor Department to establish a pilot program providing low-interest loans to workers in job training or job assistance programs to enable workers to continue making their mortgage payments. [H.R. 3009, Vote #119, 5/21/02]

McCain Skips Plan For Small Businesses At The Small Business Roundtable

Today: McCain Briefly Mentions Small Businesses, But Still Offers No Plan. "Thank you for joining me here today. It is a real pleasure to be participating in this roundtable with so many accomplished entrepreneurs and small business owners. You represent the engine of economic growth in America. Small business creates the majority of new jobs in America every year - so thank you for your ingenuity, perseverance, and hard work." [McCain speech excerpts, 4/10/08]

March 2007: McCain Had No Plan To Stimulate The Economy To Assist Small Businesses. When asked if there was anything that could be done at the federal level to stimulate local economies, McCain talked about interacting with the Small Business Administration and "privately funded organizations." McCain said "The less government is the best government." He did not offer a plan. [CNN Live Feed (Santa Ana, CA), 3/25/08]

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Source: Democratic National Committee

CONTACT: Damien LaVera of the Democratic National Committee,
+1-202-863-8148

Web Site: http://www.democrats.org/

2008-04-10 17:57:27 0333542 PRNEWSWIRE