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Sen. Barack Obama (D-Ill.) in a speech delivered near Wall Street on Thursday called for more regulation of financial institutions and repeated his criticism of GOP rival Sen. John McCain (Ariz.) for offering to do little more than watch the housing crisis happen.
In the speech at Cooper Union, Obama called for Congress to pass legislation being crafted by Sen. Christopher Dodd (D-Conn.) and Rep. Barney Frank (D-Mass.) that would offer government-backed mortgage financing to help some homeowners avoid foreclosure.
The Illinois senator, who was introduced by New York’s independent Mayor Michael Bloomberg, also called for a $30 billion stimulus package to jumpstart the economy. The package would include a $10 billion foreclosure prevention fund, $10 billion in relief to state and local governments hard-hit by the housing crisis, and extended and expanded unemployment insurance.
He also endorsed a 10 percent mortgage interest tax credit for some homeowners, new penalties on fraudulent lenders and a “Home Score” system that “will allow consumers to find out more about mortgage offers and whether they’ll be able to make payments.”
Obama criticized President Bush for “months of inaction” on the mortgage crisis, and criticized the plan offered Tuesday by presumptive GOP presidential nominee McCain for not doing enough either.
“While this is consistent with Sen. McCain’s determination to run for George Bush’s third term, it won’t help families who are suffering, and it won’t help lift our economy out of recession,” Obama said.
McCain's campaign fired back quickly. “No amount of rhetoric can hide Sen. Obama’s clear record of embracing the liberal tax-and-spend, big-government policies that hit hardworking American families at a time when they’re most vulnerable, and are certain to move America backward,” McCain spokesman Tucker Bounds said in a statement.
In a major economic speech on Tuesday, McCain called for two meetings of experts to brainstorm an answer to the swell of foreclosures that began in 2007. One would consist of accounting executives who would examine market accounting and valuation methods, and another of mortgage lenders who would agree to support “cash-strapped but credit-worthy customers.”
McCain did not rule out the possibility of government assistance to homeowners, saying he would “consider any and all proposals based on their cost and benefits.” But he said no assistance should be given to speculative buyers.
Obama said he agreed with McCain on that point.
“Sen. McCain argues that government should do nothing to protect borrowers and lenders who’ve made bad decisions, or taken on excessive risk,” Obama said. “On this point, I agree.”
Obama was the third and final major presidential candidate to deliver a speech on the economy this week.
Sen. Hillary Rodham Clinton (D-N.Y.), Obama’s rival for the Democratic nomination, in a speech Monday called for a 90-day freeze on foreclosures and at least $30 billion in state and local aid to purchase foreclosed houses, hire more police and firefighters in extensively foreclosed neighborhoods and help homeowners restructure their mortgages.
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