No wonder Peter Roskam loves this guy. According to John McCain, de-regulation of markets is the answer to everything. Even to the problems caused by…er…deregulation of markets.

In a speech on March 25, to the Orange County Hispanic Small Business Roundtable, McCain had this to say about the origins of the present crisis:

“The other part of what happened was an explosion of complex financial instruments that weren’t particularly well understood by even the most sophisticated banks, lenders and hedge funds. To make matters worse, these instruments — which basically bundled together mortgages and sold them to others to spread risk throughout our capital markets — were mostly off-balance sheets, and hidden from scrutiny. In other words, the housing bubble was made worse by a series of complex, inter-connected financial bets that were not transparent or fully understood. That means they weren’t always managed wisely because people couldn’t properly quantify the risk or the value of these bets. And because these instruments were bundled and sold and resold, it became harder and harder to find and connect up a real lender with a real borrower. Capital markets work best when there is both accountability and transparency. In the case of our current crisis, both were lacking.”

I’m good with this so far. Deregulation has led to complex new instruments that are poorly understood and lacking in accountability and transparency.

And so the obvious solution is more careful regulation of the kinds of transactions that got us into trouble, right?

Wrong! McCain’s answer: increased de-regulation!

“In financial institutions, there is no substitute for adequate capital to serve as a buffer against losses. Our financial market approach should include encouraging increased capital in financial institutions by removing regulatory, accounting and tax impediments to raising capital.”

Also, get tough on homeowners, further reduce taxes on the wealthy by eliminating the AMT, and reduce the corporate tax rate leaving poor and middle class taxpayers to bear a greater share of the costs of Republican military adventures, oil company subsidies, and bailouts of failed banks. Yep, sounds like Roskam’s kind of plan.