McCain seeks limits on government assistance

Sen. John McCain addressed the mortgage foreclosure crisis and the economy in a speech in Santa Ana, Calif., on Tuesday, but offered few alternatives to fixing the growing housing crisis.

McCain, who is eager to dispel questions about his economic credentials, said that he understood the concern and anger among Americans about uncertainty in the markets, the drop in home prices and the lack of available credit.

But, alluding to intervention by the Federal Reserve and the Bush administration in the controversial rescue of Wall Street brokerage firm Bear Stearns Cos., McCain said he was "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. Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy."

McCain also called for increased transparency and accountability in the mortgage industry, among both lenders and borrowers. He added that any aid should be temporary "and must not reward people who were irresponsible at the expense of those who weren't.

The 2000 through 2006 tax returns for Sen. Barack Obama and his wife were posted on his campaign website Tuesday, part of an ongoing effort to paint Sen. Hillary Clinton as a secretive politician who has failed to disclose key information. Clinton's campaign, meanwhile, said it hopes to release her post-White House tax records within the next week, earlier than previous estimates of mid-April.

Former First Lady Nancy Reagan endorsed John McCain for president on Tuesday. McCain is on the West Coast this week to raise money. He stopped by the Southern California home of former President Ronald Reagan's widow to accept her endorsement.

NEWS SERVICES