Although John McCain claims the mantle of ‘reformer’ he has chosen to surround himself with lobbyists for all sorts of questionable interests. We also know that John McCain has admitted that he still needs an education when it comes to the economy. Given those two facts, why would anyone be surprised that he chose Phil Gramm as his teacher. He is not only a former colleague but he has also been a lobbyist for the mortgage industry. MSNBC is reporting that while Gramm was advising John McCain about his economic policy, he was also being paid by a Swiss bank to lobby Congress about the U.S. mortgage crisis.
When Phil Gramm chaired the Senate Banking Committee, he wrote and passed deregulatory legislation in multiple industries. Some economists point to both this and general lack of enforcement as not only a key reason for the mortgage crisis but also for its spread to other sectors of finance. Given this history it shouldn’t be a surprise that John McCain has proposed even more deregulation and nothing of substance to help individuals that are struggling.