SANTA ANA, Calif. (AP) – Republican John McCain, who has conceded economics is not his strong suit, says government isn’t in the business of saving and rewarding banks or small borrowers who behave irresponsibly.
As the nation faces an economic downturn, the certain GOP presidential nominee was focusing on the turmoil in home financing in a session with local business leaders south of Los Angeles as he tried to rebut Democratic criticism of his economic credentials.
On Monday, the Federal Reserve essentially bailed out the investment house Bear Stearns. On Tuesday, the Fed Federal Reserve announced it has auctioned another $50 billion in short-term loans at an interest rate of 2.615 percent to cash-strapped banks to help them overcome credit problems. Since December, the Fed has provided a total of $260 billion in short-term loans to banks.
McCain wants to leave the door open to a wide array of proposals to address the problems.
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