Rescue Plan:

John McCain, Republican candidate for president, proposes a “Homeownership Resurgence Plan” to deal with the financial crisis, saying American families are bearing much of the burden from the weak economy, foreclosures, and dropping housing values, according to his campaign Web site.

During the presidential debates, the candidate has said the plan would begin with the government purchasing failing mortgages directly from homeowners, avoiding uncertainty over defaults and freeing up financial markets, while at the same time allowing families to stay in their homes. The cost of this plan, according to the campaign site, would be $300 billion, funded by the money from the recently passed rescue bill, which McCain supported and voted for.

The senator supports lowering taxes on seniors tapping their retirement accounts, reduce capital gains taxes, and eliminating taxes on unemployment benefits to help deal with the crisis.

Asked during the debates how he would change his plans during the beginning of his presidency to deal with the high cost of the rescue bill, McCain said he’d impose a spending freeze on every federal agency for a year, with the exception of national defense, veteran care, and some other critical priorities.

The senator put his campaign on hold for a few days and went to Washington to work on the Rescue Plan in Congress.

According to a Wall Street Journal report, “McCain would institute a regulator for every financial institution and type of transaction.”

Fannie Mae and Freddie Mac:

In an editorial he wrote in the St. Petersburg Times, the senator said he supported the bailout of Fannie Mae and Freddie Mac because of the threat their failure posed to the mortgage and financial markets.

McCain cosponsored the Federal Housing Enterprise Regulatory Reform Act of 2005, according to the campaign site and at the time said, “If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.”

AIG, Lehman Brothers:

McCain said in a statement to the press, he believes the government was forced to commit the $85 billion to save AIG and blamed the situation, as well as what happened with Bear Stearns, Lehman Brothers, Fannie Mae and Freddie Mac on “failed regulation, reckless management, and a casino culture on Wall Street”

He initially said he thought it would be a mistake to bail out AIG, though, according to a report in The Wall Street Journal.

McCain, like his opponent, Barack Obama, supported the decision of the Federal Reserve not to use taxpayer money to bail out Lehman Brothers.