McCain Praised Banking Deregulation Earlier This Month

[Joanne98]

In a magazine article published earlier this month, John McCain not only claimed credit for the banking deregulation, but he hailed it as a model for what should be done with health care (emphasis added):

Opening up the health insurance market to more vigorous nationwide competition, as we have done over the last decade in banking, would provide more choices of innovative products less burdened by the worst excesses of state-based regulation.

(h/t: Paul Krugman)

Of course now that things have imploded at Lehman and AIG, John McCain claims to be the world's most sincere champion of tougher regulation. But his new position has all the credibility of his campaign's attacks, which is to say none at all.

Meanwhile, in stark contrast to McCain, one year ago Barack Obama proposed new regulations that would have prevented the mortgage crisis that led to the situation we find ourselves in today.

Specifically, Obama proposed a three step-solution: (1) more disclosure and accountability in housing market; (2) more oversight on ratings agencies; and (3) increase transparency across the board.

And in March, Obama spoke at Cooper Union in New York, delivering a critique of the push for deregulation championed by John McCain.

The evolution of industries often warrants regulatory reform to foster competition, lower prices or replace outdated oversight structures. Old institutions cannot adequately oversee new practices. Old rules may not fit the roads where our economy is leading. So there were good arguments for changing the rules of the road in the 1990s. Our economy was undergoing a fundamental shift, carried along by the swift currents of technological change and globalization. For the sake of our common prosperity, we needed to adapt to keep markets competitive and fair. Unfortunately, instead of establishing a 21st century regulatory framework, we simply dismantled the old one, aided by a legal but corrupt bargain in which campaign money all too often shaped policy and watered down oversight.

Here's the bottom-line: up until this week, John McCain had a very different message on regulatory reform. Barack Obama on the other hand has been consistent throughout the campaign. And more importantly, while John McCain has been wrong, Barack Obama has been right.

http://www.jedreport.com/2008/09/mccain-praised-banking-deregul.html