By Tim Gaynor
SANTA ANA, California (Reuters) - Republican presidentialcandidate John McCain, looking to bolster his economiccredentials, promised on Tuesday to find an answer to the U.S.housing crisis but came under fire from Democrats for failingto back a specific approach.
McCain, who has been criticized as weak on the economy,said he was open to a variety of solutions to ease problems inU.S. housing markets and called for quick meetings of mortgagelenders and accountants to begin to tackle the issue.
"I will not play election year politics with the housingcrisis. I will evaluate everything in terms of whether it mightbe harmful or helpful to our effort to deal with the crisis weface now," the Arizona senator told business leaders insouthern California.
"I will consider any and all proposals based on their costand benefits. In this crisis, as in all I may face in thefuture, I will not allow dogma to override common sense," hesaid.
McCain has clinched the Republican nomination and will facethe winner of the Democratic race between Barack Obama andHillary Clinton in November's presidential election.
Democrats have pounced on past comments that he knows lessabout economics than about foreign policy and national securityto paint him as a risky and out-of-touch choice for the WhiteHouse at a time of U.S. economic uncertainty.
McCain received the same criticism from fellow Republicansbefore the won the battle for the party's nomination.
But McCain's speech did not win over Democrats, whoattacked his failure to spell out a plan to tackle housingproblems and compared his stance to that of President George W.Bush.
"Instead of offering a concrete plan to address the crisisat all levels, McCain promised to take the same hands offapproach that President Bush used to lead us into this crisis,"Democratic Party chief Howard Dean said.
Obama spokesman Bill Burton said McCain was "suggestingthat the best way to address the housing crisis is to sit backand watch it happen -- which is just further evidence that hewould continue President Bush's failed economic policies."
NANCY REAGAN ENDORSEMENT
McCain did win the endorsement of former first lady NancyReagan, widow of President Ronald Reagan, who said the formerprisoner of war in Vietnam had been a good friend for 30 years.
"I believe John's record and experience have prepared himwell to be our next president," she said.
McCain outlined in the speech the problems facing the U.S.housing market and said he would not back steps that rewardedthose who had acted "irresponsibly" in feeding turmoil in thehousing market.
"I have always been committed to the principle that it isnot the duty of government to bail out and reward those who actirresponsibly, whether they are big banks or small borrowers,"he said.
"Government assistance to the banking system should bebased solely on preventing systemic risk that would endangerthe entire financial system and the economy," McCain said.
He said the government could do two things right away --convene separate meetings of accounting professionals and ofmortgage lenders to begin to hash out solutions to the housingcrisis.
McCain's speech came one day after Clinton offered a planin Pennsylvania to ease uncertainty in U.S. housing markets.Obama also has offered a series of steps aimed at easing thehousing crisis.
Clinton and Obama, locked in a tight battle for theDemocratic nomination, have competed to be seen as the mostreliable stewards of the economy amid a potential recession andturmoil in housing and financial markets.
Obama, an Illinois senator, released his tax returns from2000 to 2006 and challenged Clinton, a New York senator, torelease her most recent filings. Her campaign has promised tomake her returns since 2001 public by three days before thenext contest in Pennsylvania on April 22.
Clinton told reporters she made a mistake when she recentlysaid she came under sniper fire when she arrived in Bosnia on a1996 visit while first lady. Other participants and videofootage showed a casual arrival, with Clinton greeting a younggirl.
She also criticized Obama for remaining a member of theChicago church where his pastor, Rev. Jeremiah Wright, madeinflammatory comments about racism and the September 11, 2001attacks.
"We don't have a choice when it comes to our relatives. Wehave a choice when it comes to our pastors and the churches weattend," she told reporters in Pennsylvania.
Obama gave a speech last week rejecting Wright's raciallycharged remarks and urging Americans to move past their "racialstalemate."
(Writing by John Whitesides; editing by Patricia Wilson andDavid Wiessler)
(To read more about the U.S. political campaign, visitReuters "Tales from the Trail: 2008" online athttp:blogs.reuters.com/trail08/)
