John McCain

McCAIN IS NOT EQUIPPED TO FIX OUR ECONOMY
Working men and women across the country will tell you that our economy is in trouble. The mortgage crisis has resulted in record foreclosure filings, health care costs are skyrocketing and families are working harder than ever to make ends meet. It’s a widely accepted fact that we’re headed into a recession. But John McCain has not shown any real interest in correcting this situation. In fact, McCain goes against conventional wisdom by saying he doesn’t think we’re headed into a recession and didn’t even bother to show up to vote for the stimulus package.

WHAT IS McCAIN SAYING?
McCain: We Are NOT Headed into a Recession. McCain said, “I don’t believe we’re headed into a recession. I believe the fundamentals of this economy are strong, and I believe they will remain strong.” [GOP Debate, Myrtle Beach, FNC, 1/10/08]

McCain: I Never Really Understood Economics. McCain said, “The issue of economics is something that I’ve really never understood as well as I should. I understand the basics, the fundamentals, the vision, all that kind of stuff. But I would like to have someone I’m close to that really is a good strong economist. As long as Alan Greenspan is around I would certainly use him for advice and counsel.” [“The Swamp,” Chicago Tribune, 12/18/07]

Alan Greenspan Said We’re “Clearly on the Edge” of a Recession. “Former Federal Reserve Chairman Alan Greenspan said Thursday night the American economy is ‘clearly on the edge’ of a recession, and he pointed to the depressed housing market as a primary culprit.” [Associated Press, 2/15/08]

WHAT’S REALLY HAPPENING?
Consumer Confi dence Down, Costs Up and Housing Prices Down. The economy was battered by bad news on Tuesday, February 25, 2008. The Conference Board’s Consumer Confidence Index plunged to 75 from 87.3 in January “as Americans worried about less-favorable business conditions and job prospects.” The Labor Department reported that wholesale food, energy and medicine costs soared, pushing inflation up at the fastest pace in a quarter of a century. And U.S. home prices dropped 8.9 percent in the final quarter of 2007 compared with a year ago, Standard & Poor’s said, the steepest decline in the 20-year history of its housing index. [Associated Press Online, 2/26/08; Associated Press, 2/26/08]

January 2008: 233,000 Foreclosures Reported; an 8 Percent Increase from December 2007. “RealtyTracTM released its January 2008 U.S. Foreclosure Market Report, which shows foreclosure filings—default notices, auction sales notices and bank repossessions—were reported on 233,001 properties during the month, an increase of 8 percent from the previous month and an increase of nearly 57 percent from January 2007.” [RealtyTrac Press Release, 2/26/08]

Feds Investigate 14 Companies Connected to Housing Crisis for Mortgage Fraud. The FBI and Securities and Exchange Commission opened a criminal probe into mortgage-market fraud by 14 companies. The criminal probe is the latest in a string of investigations assessing how much banks knew and disclosed about risky mortgage securities backed by subprime loans. The FBI did not identify the companies involved in the probe. [Associated Press, 2/1/08; Associated Press, 2/19/08]

McCain’s Hometown, Phoenix, Had Devastating 56,000 Foreclosure Filings in 2007. In 2007, Phoenix reported 56,040 foreclosures— that represents a 177 percent increase from 2006. JoAnn Hauger, executive director of the Community Housing Resources of Arizona, sees 20 to 30 people a month in need of housing counseling because they can no longer afford their mortgage payments. “It is tough,” she said. “I don’t know if Bush’s $300 or $600 will make a difference.” [RealtyTrac Press Release, 2/13/08; Washington Post, 2/5/08]

WILL McCAIN DO ANYTHING?
McCain Skipped Vote on Economic Stimulus Package Despite Being in Washington at the Time. Senator McCain missed a key vote on H.R. 5140 —the Recovery Rebates and Economic Stimulus for the American People Act of 2008. “McCain returned to Washington but made an eleventh-hour decision to skip the vote, aides to his campaign said.” [H.R. 5140, Vote #8, 2/6/08; Associated Press, 2/6/08]

McCain Said Government Should Consider Intervening in Mortgage Crisis; Did NOT Specify Necessary Intervention. “Reacting to voters’ concerns about the economy, Senator John McCain said that he would consider greater intervention by the federal government to limit the fallout of the mortgage crisis if current measures fail. McCain...did not specify what further federal intervention might be necessary.” [New York Times, 12/15/07]

But ONLY If Efforts to Help the Banks Do NOT Succeed. “Arizona Sen. John McCain is the only GOP hopeful to express any support for government intervention in the foreclosure crisis, and then only if current efforts by the White House to work with banks don’t succeed.” [St Louis Post- Dispatch, 1/27/08]