Democrats and some Republicans had made a lot of headway on the bailout plan. Then Republican John McCain came to town (having never read the bipartisan plan) and instead promoted "tax cuts for corporate America and less regulation". Again lets remember that for decades John McCain has been for deregulating the economy, and has up until the last two weeks run on an economic plan of tax cuts for corporate America and less regulation, so his grand idea was more of the same. Republican John McCain's radical injection of himself into the bailout negotiations is just more of the same and is exactly what led us into this economic failure.
For a week John McCain tried to cast himself as a populist, but then when a deal was about to be made he threw out an alternative plan that Henry Paulson and Ben Bernanke had already said would not work in Congressional testimony to the House (which McCain probably missed as he was meeting with U2's Bono) and came out against the plan.
Some highlights of the bailout plan that John McCain now doesn't want:
- Two oversight boards would be formed—one with congressional representation, another would have the power to undo decisions by the Treasury Secretary.
- The Treasury Secretary would be prohibited from acting in an arbitrary or capricious manner or any way inconsistent with existing law.- Regular, detailed reports would be made to Congress disclosing exercise of the Treasury Secretary's authority.
- An independent inspector general would be set up to monitor the use of the Treasury Secretary's authority.
- The Government Accountability Office would be required to perform audits to ensure proper use of funds, appropriate internal controls, and to prevent waste, fraud, and abuse.
- Maximize and coordinate efforts to modify mortgages for homeowners at risk of foreclosure.
- Loan modifications would be required for mortgages owned or controlled by the federal government.
- A percentage of future profits from the bailout fund would be made available to the Affordable Housing Fund and the Capital Magnet Fund to meet America's housing needs.