McCain revises plan for economic crisis

NEW YORK – Two weeks after drawing criticism for saying he favored only a limited federal role to help deal with the home mortgage crisis, Republican presidential candidate John McCain sought to assure Americans that he is prepared to use the government where necessary to help ease the impact on working families of a declining economy.

In a campaign appearance with small-business owners in Brooklyn, McCain also addressed the economic downturn with proposals to help families facing foreclosure restructure their mortgages and to give workers who have lost their jobs more flexibility and incentives to seek retraining and a speedier return to the workforce.

“Let me make it clear that in these challenging times, I am committed to using all the resources of this government and great nation to create opportunity and make sure that every deserving American has a good job and can achieve their American dream,” McCain said.

On the housing crisis, McCain again made clear his opposition to broad federal intervention. He said he still opposes helping those who fed the speculative frenzy in the housing and credit markets.

Instead, McCain proposed a federal program that would require individual homeowners to seek help from the government and, if they qualified, enable them to restructure mortgages and stay in their homes.

Families who can afford their current, albeit higher, mortgage would not qualify, and the assistance would cover only primary residences.

McCain also demanded a Justice Department investigation to look into criminal wrongdoing in both the home mortgage industry and in the securitized credit instruments that were created to fuel the speculative bubble in the housing market.