In today’s Wall Street Journal, Sen. John McCain and Gov. Sarah Palin make their case regarding government bailouts and the latest issue surrounding Fannie Mae and Freddie Mac. Perhaps their position can be best summed up as reform over subsidy.
One of us, John McCain, said over two years ago, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose.”
Fannie and Freddie’s lobbyists succeeded and Congress failed. Under our administration this will not happen again.
In the first 100 days of our administration, we will look at every agency and department and expenditure of the federal government and ask this simple question: Is it serving the needs of the taxpayer? If it is not, we will reform it or shut it down, and we will spend money only on what is truly in the interest of the American people.
In the commentary, McCain and Palin advocated for greater homeowner and mortgage lender transparency, ensuring that lenders do not loan to those who cannot afford the loan, accountability of mortgage lenders, that a reasonable down payment should be made by borrowers, etc.
