With all of the recent financial meltdowns occupying the headlines, I thought I'd see where the two presidential candidates are on the subject:
A decade ago McCain tried to pass a moratorium on all federal regulations. He was unsuccessful.
McCain's current financial adviser and drafter of his current economic policy, Phil Graham, authored the
Commodity Futures Modernization Act in 2000 kept derivatives and high-end investments off limits to regulators. That helped to induce this current crisis.
McCain hasn't cited a single specific way to fix the current crisis and, according to him, we haven't yet figured out what went wrong.
Barack Obama unveiled a 6-point plan during the Democratic primaries that would regulate investment banks similar to commercial banks.
In February of 2006, Obama introduced legislation to stop mortgage transactions that promoted fraud, risk, or abuse. A year later he warned the US Treasury and US Federal Reserve Chairman about the risks of mounting foreclosures. He urged them to bring together all of the stakeholders to find solutions to the subprime mortgage meltdown. McCain did nothing.
Last September, at NASDAQ, Obama warned there was a growing loss of trust in the capital markets. Months later, McCain told the newspapers that he would love to give a solution to the mortgage crisis but instead said, "I don't know of one."
In January Obama outlined a plan to help revive the faltering economy which formed the basis for a bi-partisan stimulus package that passed the Congress. McCain used the crisis as an excuse to push his stimulus plan that offered another huge and permanent corporate tax cut including $4 billion for the big oil companies but no immediate help for workers.
This March, in the wake of the Bear Sterns bailout, Obama called for new, 21st century regulatory framework to restore accountability, transparency, and trust in our financial markets. A few weeks earlier, McCain said "I'm always for less regulation." And then referred to himself as "fundamentally a deregulator".
Fast-forward to today and you see what happens when you confuse the free market with a free license for special interests to take whatever they can get however they can get it. As someone who is about to get married, buy a house, and would like to have a reasonable amount of trust in the financial infrastructure, I just can't stomach the thought of the ideas McCain advocates becoming policy. Obtaining a mortgage is getting progressively more difficult and retirement savings are taking it in the shorts.
For the sake of everyone making less than 7-figures, please vote Obama.