McCain Talks About the Economy

From CBS News' Dante Higgins:

NEW YORK -- John McCain is in New York today, where he will begin his day chatting with the women on “The View” before heading to Brooklyn, where he will give a speech on the economy.

He’s expected to be introduced by New York City Mayor Michael Bloomberg in Brooklyn and he'll attempt to answer critics who say he doesn't focus enough on the economy.

McCain will unveil what he's calling the "HOME" plan, which he says he will combine the power of government and the private sector to find immediate solutions for deserving homeowners. “This plan is focused on people,” McCain will say, according to his prepared remarks..

His plan would allow homeowners facing foreclosure to replace their “burdensome” mortgages with more manageable loans that they can afford.

“Homeowners would end up with a 30-year mortgage and an equity stake in their home. The new lender would receive a federal guarantee of the mortgage. And the taxpayer gets a benefit if the sale value ever recovers,” McCain will say.

McCain is also expected to call for a Justice Department task force to investigate potential criminal wrongdoing in the mortgage lending industry.

“If there were individuals or firms that defrauded innocent homeowners or forged loan application documents, then the punishments of the market are not enough, and they must answer for their conduct in a court of law."

McCain will also address the cost of fuel, gas and food, asking Americans to consider where they can sacrifice a bit and cut back on energy use while proposing that the U.S. stop adding to the Strategic Petroleum Reserve, an emergency supply of crude oil maintained by the government.

“The SPR is intended to offset the impact of physical disruption of oil supplies. But with oil at over $100 a barrel and an adequate supply in the SPR, it is time to suspend purchases. This will lessen worldwide demand for oil, and if the classic laws of supply and demand hold, we should see a welcome decrease in the price of oil,” McCain says.

McCain is expected to outline a longer-term economic plan next week. “But 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."