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McCain Adviser Offers Details on Mortgage Plan

By Michael Abramowitz
John McCain's policy adviser Doug Holtz-Eakin asserted John McCain's new proposal for the government to buy bad mortgages would eventually help lower interest rates, stabilize housing values and perhaps help millions of homeowners avoid foreclosure or obtain more affordable mortgages.

In a conference call with reporters this morning, Holtz-Eakin offered a few more details of the so-called American Homeownership Resurgence Plan, unveiled at the Tuesday night debate, in which a homeowner having difficulty making payments or facing foreclosure would be eligible for an FHA-insured mortgage. He said that some of the money for the new program, which could cost $300 billion, could come from the new $700 billion authority granted the Treasury Secretary to buy distressed assets; he also said some of the funds could also come from existing authority in the Federal Housing Administration.

Holtz-Eakin said the interest rates on the 30-year fixed mortgages could be as low as 5 or 5.25 percent, and that homeowners wishing to refinance would work through traditional mortgage brokers.

One looming question today is how new McCain's plan actually is. The Obama campaign said its candidate has been pushing the idea that the government should purchase mortgages directly since Sept. 24, and Obama has mentioned the idea as well.

Holtz-Eakin acknowledged that the idea has been bubbling out there but said what McCain is proposing is much more ambitious than anything else. "The senator is interested in timely responses," he said.

Posted at 12:42 PM ET on Oct 8, 2008  | Category:  John McCain
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What about all the RESPONSIBLE homeowners who haven't leveraged their homes to buy cars and furniture and to take vacations. The same ones that dig deeper every month to pay their mortgage and therefore aren't behind?

Posted by: 2020rob | October 10, 2008 2:57 PM

What about all the RESPONSIBLE homeowners who haven't leveraged their homes to buy cars and furniture and to take vacations. The same ones that dig deeper every month to pay their mortgage and therefore aren't behind?

Posted by: 2020rob | October 10, 2008 2:56 PM

I can't understand do much bitterness.

Posted by: rrustomji | October 8, 2008 6:22 PM

Why hasn't FOX or anybody for that matter done a one hour special on the Alaska Independence Party??

You know the secessionist group Todd Palin supported up until 2002? Am I to believe that he had no influence on Sara, his wife??

Guilty by association right? So, is Sara in favor of Alaska leaving the U.S. of A??

What a great choice she was by McCain.

Posted by: Ed12 | October 8, 2008 6:21 PM

This is for > "AnAmericanVoice" Does your mommy know you're playing on her Computer ?

Posted by: gatorsn09 | October 8, 2008 6:14 PM

We'll all need a second job to pay the taxes for McCains plan to buy up bad mortgages ... Where will Old John park all the foreclosed houses ? Maybe Palin & her growing family can move into one further away from the mean old Russians she keeps waving to.

Posted by: gatorsn09 | October 8, 2008 6:10 PM

This plan isn't going to sit very well with the majority of home owners with a mortgage who have been fiscally responsible. Many of us saw ARMs for what they were and avoided them like the plague. So now do I get my mortgage refinanced and adjusted too or do I let it go into foreclosure proceedings so I can take advantage of the government gift?

What about the property tax issues for those of us who have to pay it? There is this baseball bat just waiting to be swung at the heads of the local municipalities where the tax base is eroding. All I see under the current circumstance is my property and school taxes going up yet again and even more on a reduced value property to make up the loss of municipal taxable income. Who is going to help those of us who are going to have to shoulder this additional burden?

Posted by: wes1155 | October 8, 2008 6:03 PM

Again John McCain is a day late and a dollar short. Barack Obama already proposed this twice last week, but let's let John take credit for it because it is freaking out his Republican base, Socialism doesn't get better than this... that's why I believe that John McCain is a puppet. He is not a Maverick, He is Sarah Palin's sidekick

Posted by: mrtutto | October 8, 2008 5:59 PM

I like the McCain plan of buying the high mortgage and letting the owner payback only the fair price of the home.

Let me explain that in real numbers...
If I bought a $200,000 home at an inflated price of $300,000, govt will let me off the hook for $100,000, and make me pay only $200,000. Very nice.

So, Mr McCain, what about those people who realized they cannot afford the home and stayed in apartments and smaller homes? Are you saying they are stupid for living within their means? Did the tax that those people paid the government not worth as much as others?

Why not make it easier for all, and have the govt buy everyone their dream homes for free?

Posted by: Dave27 | October 8, 2008 5:48 PM

Eaversrus
Apparently critical reading (if you even bothered) is not your forte’.

McCain’s plan would FORCE lenders to lower mortgages in BOTH the amount AND the interest rate being charged to CONSUMERS.

The plans you mentioned address the issue from the LENDER side – not the CONSUMER side. Major difference mo.

I tried to hightlight the salient points by USING CAPS (Short for capital letters) – Trust me, I thought I had to explain based only on the IQ indicated by your post.

Posted by: Bcamp55 | October 8, 2008 5:10 PM

Bias is alive and well. Technically, Hillary Clinton was the first candidate to discuss this plan for bailing out home morgages, way before these two guys. Facts matter.

Posted by: JOHANNESEN7 | October 8, 2008 5:06 PM

willie1231966:
"Who in the right mind would renegotiate a contract and devalue the price of their home."

I would absolutely re-negotiate my mortgage loan if it devalued my home. Seriously, thats one of the dumbest lines I've ever heard. Let me tell you how it actually works: what you owe on your mortgage does NOT dictate the value of your home. That value is only generated by what your comparables, in similar size, date built, proximity, and appearance sell for - usually within the previous 6 months. On top of that most people are in their homes for the long term, and understand that if they 'de-value' their homes value while lowering their payments over time they will come out way ahead, while increasing their positive cash flow.
Example:
My house is worth 500K and my payments are $2800/month
My house worth 350K and my payments are $1750/month
If they were the same house, which would you rather have?

The equity will rebound, it always does. His plan may work, it may not. The only appauling part of that line was that it was NOT his plan - even when he tried to take credit for it. This has been in 2 pieces of legislation right now, it's part of the rescue package and Biden said the same thing last week. Obama proposed this in April as well.

I agree with you that the man is out of touch, but I hope this gives you more insight on how the housing market actually works.

Posted by: beaversrus | October 8, 2008 5:03 PM

Christ - it's been close to 24 hours since the debate and Obamoron hasn't taken credit for the idea yet.

Is he hospitalized? Dead? Laryngitis? Been in a wreck? Busy curing cancer? Outbreak from an embarrassing social disease? Filming a scene for Erkle, the movie?

Trust me; by this time next week the industrial strength scum bag will be right in line, spewing "his" idea to an adoring media ala The Joe Biden School of Original Thought.

Posted by: Bcamp55 | October 8, 2008 5:02 PM

Last night's debate only reinforced what John McCain has said himself; "I don't understand the economy very well". Who in the right mind would renegotiate a contract and devalue the price of their home. It is not just a mortgage meltdown. It was another bubble, it is a derivatives and futures market who have been hit with a virus like "ENRON-ITIS" How do you fix it. Clean house at the SEC, bring Spitzer in. He is ruthless when it comes to corporate corruption. Confidence in the market is not solved just by throwing money into the problem, we need to restore trust. Understand the fundamental of business and client integrity. It is not just homeowner's fault, and now bail me out. It is not about a world were instruments deviced to hedge risks and price fluctuation and parity end up at a level that is well beyond what the future value of the underlying commodity actually is and will be. Transparency and letting the chips fall where they may. Then governments can actually know where they can help and lay out policies that actually will protect the wealth of our nation. This has been silly season in Wall Street again. I'm glad I'm just an Animal Cop.

Posted by: willie1231966 | October 8, 2008 4:31 PM

Thanks C12Eye

here is another way to blled off money to the rich by paying off the negative equity which all the rich cronies have already pocketed ... Then you have the audacity of HOPELESSNESS by telling the already poor that you have nothing left for the middle class!!

SORRY JOHN WE ARE NOT STUPID ... OUR MINDS ARE ALREADY MADE UP BEFORE THE POLLS ARE EVEN OPENED FOR VOTING.

“For those that cannot make payments, … The McCain Resurgence Plan would purchase mortgages… and replace them with manageable, fixed-rate mortgages… The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of negative equity.”

Posted by: amitchel | October 8, 2008 4:23 PM

McCaint is a spineless coward....

Watch his response on the :14 sec mark...
http://www.youtube.com/watch?v=xVFWahLTdUo

...Why didnt McCaint talk about his running "nurse" peeeuuu Palin?

Neo-cons...please answer why his "pig" with lipstick was not mentioned......
Could it be because of 1200 dollar rape kits that victims pay in Alaska
Could it be because of the Alaskan Independence Party?
Could it be because of the Alaskan Independence Party sympathized with Timothy McVeigh.
Could it be because of AIP Founder Joe Vogel: “The fires of hell are frozen glaciers compared to my hatred for the American government", “and I won't be buried under their damn flag." (Joe Vogel is buried in Canada.)
Could it be because of Vogels' rantings of ....“I’m an Alaskan, not an American. I've got no use for America or her damned institutions." Joe Vogel – Founder.
Could it be because of Dexter Clark, vice chairman of the A.I.P.: refers to the American soldiers in Alaska as "occupying troops."
Could it be because of Michael Hill, a representative of A.I.P., stated on Glen Beck’s program that the goal of the A.I.P. is to dissolve the United States and the Constitution.
Could it be because of a rally in Ft. Myers Monday, a crowd member screamed, "Kill Him" as Sarah laughed and cheered with the crowd.
Could it be because of a fake skinheaded sherriff waddles to the podium after peeeuuu and calls out Barack Hussein Obama to the crowd to further boos and chants of kill him...on Monday
Could it be because of a McCain rally, he asked, "Who is Barack Obama?" and a crowd member yelled out "Terrorist" as McCain held that silly smirk on his addled face.
Could it be because of the reprehensible type of political campaigning is typical of the desperation the Republican Party finds itself in, as their numbers in the polls fall like the stock market...and now even further...

Could it be because of the Alaskan Drug Enforcement report under Palin proved uneffective...

http://www.usdoj.gov/dea/pubs/states/alaska.html

...Or could it be that McCaint forgot who she was...

....Or just that negative campaigning and negative pathetic ad's have a negative effect...

http://www.youtube.com/watch?v=nHW-RO1_WN0

Thanks But No Thanks..............

Posted by: AlexP1 | October 8, 2008 4:12 PM

McCain: This leglisation is already in 2 bills including the bailout package. On top of that, Biden said the same thing last week in the debate! McCain has the aduacity to actually say "this is my plan, not Barak Obama's or George Bush's, its my plan". Come on John, we're not that stupid!
The part that cracks me up is that homeowners will have to go through traditional brokers, and if they have no idea what they are doing (average american doesn't even read their loan docs) you'll see a boom for brokers, much like 5 years ago that started this mess.

Posted by: beaversrus | October 8, 2008 4:03 PM

Sen. John McCain clearly won the debate last night.

Democrats for John McCain and Sarah Palin in 2008.

Posted by: hclark1 | October 8, 2008 4:02 PM

Both Obama and Hillary came up with much more thoughtful plans to help relieve the burden of the bad mortgages back in February or March. McCain's response: We can't bail out those who made bad choices.

Now another flip-flop and once again he makes a poorly conceived, extremely expensive sledge-hammer approach. It not only bails out unfortuante homeowners, it give a wind-fall to the very mortgage companies and banks that made the deceitful loans. Better to force the banks to re-write these loans and take the hit themselves for their bad faith.

This guy does not have the temperment or judgment to be President.

Posted by: dcwsano | October 8, 2008 3:48 PM

my friends!

my friends!

error-error

http://www.youtube.com/watch?v=3i5T301aAWg

Posted by: sobugged1 | October 8, 2008 3:41 PM

Hey there AnAmericanVoice...everything you wrote was McCain camp soundbites digested and vomitted thru Fox News.

Innuendo, conspiracy, guilt by association, and even espionage from the sounds of it. Who is listening to such refried fear mongering?

Well, the only thing I fear are people like you and the conservative electeds, judges and policies you support. Obama is not a Muslim, Marxist, friend of terrorist, or anything else you claim him to be.

What he had done is win 2 debates! And now McCain is lauching a spending plan to add another $300 billion to our $700 billion rescue plan. Is that small government to you??

Posted by: indytucker | October 8, 2008 3:39 PM

AnAmericanVoice:
Stop with your vile bigotry already. It's old. We have moved past this (or at least we are trying). The hate you spew is un-American and there is no place for that in this country. If continue w/ your racist remarks, let me say on behalf of this country, This great Nation does not want you here. You are un-American. Please leave.

Posted by: Godhimself1 | October 8, 2008 3:36 PM

Duffme1,

The details of McCain’s plan can be found on his website but here are key elements taken directly from his site:

“For those that cannot make payments, … The McCain Resurgence Plan would purchase mortgages… and replace them with manageable, fixed-rate mortgages… The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of negative equity.”

He also states “It may be necessary for Congress to raise the overall borrowing limit.”

John McCain is no conservative. People who made bad choices should deal with their choices and politicians shouldn’t force me as a taxpayer to “relieve” other homeowners of their negative equity.

This proposal is absurd.

Posted by: Ci2Eye | October 8, 2008 3:15 PM

I'm opening a wooden arrow factory. Anybody want in on the IPO?

:)

Posted by: madcitizen | October 8, 2008 3:10 PM

Great idea, Sen. McCain. Just one question:

I researched the real estate market for more than a year before buying my first home. I located a community 70 miles from Wsshington with houses that I could actually afford and bought a modest townhouse exactly the right size for my needs. I ignored all the sales pitches for "smart" adjustable-rate and interest-only mortgages and insisted on an "old-fashioned" fixed-rate mortgage. And now, while most of my neighbors in much bigger houses are "underwater," my home is still valued at more than I paid for it.

So answer me this, Sen. McCain. With bank CEOs walking away with hundreds of millions of dollars in bonuses, and with homeowners who invested foolishly getting bailed out under your plan, what do I get for being smart? Where's my reward?

Posted by: waxtadpole1 | October 8, 2008 3:08 PM

Hey AnAmericanVoice - did you hurt yourself typing so many words? Two more words for you - anger management. Then take a step back and look at what you wrote. I can see why you want McCain - lots of anger in you two - lots of misguided anger.

Posted by: FirthDavenport | October 8, 2008 2:54 PM

This just further supports the notion that McCain is out of touch in many ways. Although he claims this is his "original idea", Obama in fact has publicly discussed this idea several times; Hillary Clinton wrote a recent newspaper column regarding this option; this was done during the Depression through the Home Owners Loan Association, a New Deal agency; and as many people have pointed out, the Treasury Secretary has already been given this authority under the bailout package just signed by Bush. The problem however, is that this will not only be wildly expensive, but if enacted as suggested by McCain, such a move would be highly unfair to all the people currently making their mortgage payments, many on over-valued properties. While McCain and his spokespeople would like us to believe that this is a new and innovative idea, it is really just another example of his erratic approach to policy, applying "simple" solutions to complex issues that are beyond his capacity to fully grasp, and further indication of his desperate thrashing for any solution to his failing campaign. Thanks anyway, Mr. McCain.

Posted by: ArchHero | October 8, 2008 2:53 PM

Well, I guess McCain is finally admitting that Government needs to help. He always says that he's against big Government and that the private sector will take care of the markets. Guess he was wrong. Maybe he'll announce that he's changing parties next. Now that's a Maverick move, McCain becomes a Democrat; finds compassion for middle and low income Americans. Wow, he just doesn't know who he is, does he!!

McCain's "Mortgage Plan" is essentially nothing new. The Treasury Dept. has the power, under the bailout plan signed into law, to allocate funds for re-writing mortgages to homeowner's who may be close to foreclosure. Under his plan, McCain allocates nearly half of the 700 billion Bush and Congress appropriated. Where did he get this figure? You can't design a program of this magnitude without the data. And what does he propose we do with he remaining 400 billion. What if the value of foreclosed assets, properties that have already been taken back by lenders, exceeds 400 billion. American taxpayers deserve answers!

I'm tired of McCain's avoidance; his failure to answer simple questions. After 8 years of Bush and all the things he has done to tear down America, I'm tired of not hearing anything that distinguishes McCain from Bush. Now, I have to decide whether I will vote Independent or Democrat. I'm certainly leaning much more toward Democrat, to make certain McCain does not get elected.

Posted by: nl2211 | October 8, 2008 2:52 PM

I don't really see any explanation of details in this article. McCain mentioned to refinance mortgages based on current housing prices. Is he saying that people that bought a house they couldn't afford now get a discount on the price of the house!?! If so that is rewarding the irresponsible. Why not instead reward the prudent with first time homeowner tax breaks and such? And is his spending freeze absolute? That is, does he just stop new spending or does it include existing programs that will collapse without continued funding? How will he do anything with a total freeze? Why is is so difficult for the news organizations to get basics on any plans we're hearing about?

Posted by: duffme1 | October 8, 2008 2:40 PM

So what is the option 30 more months in Iraq $300 billion or buying back mortgae evaluations on 20 million homes? What about all the other things that need doing: energy, health care, education and other entitlements for the retired? Mcmain is done ... Poor Judgment. Sarah Palin should disassociate herself from him if she is to have any credibility in the Republican Party 2012 and beyond. How would you like to be called an "attack dog" a "baracuda"

Posted by: amitchell13 | October 8, 2008 2:38 PM

Obama is a Muslim, wait no he is black Christian activist, wait no, he is now a non-denominational Christian - for the moment...

Obama is an ultra liberal and wants the war to stop now, wait no, he is a moderate and will end the war real soon, no wait, he is a liberal and now wants to pour more troops into Afghanistan, no wait, he is radical again and wants to invade Pakistan, who has nuclear weapons?

Obama has good roots in Kenya. Wait, where was he born? Is is actually a USA citizen or a Kenya citizen? Where is his birth certificate?

He wants establish programs for socialistic health care and for socialistic wealth redistribution... so he is a capitalist right? Or a socialist?

So just who is Obama? He is change - he changes all the time like a chameleon.

He is for world government - he had hundreds of thousands of Germans supporting him and chanting for him.

So let me get this straight.

This man, who was not born in the USA.
Who has deep Muslim upbringing.
Who then entered politics and changed his official religious beliefs.
Who started his political career with men who advocated the bombing of USA buildings like the pentagon.
Who voted more times present in the Illinois senate than any other politician ever, rather than taking a stand that may affect his political future.
Who, until it became a political liability, actively went to a black activist church which hates white people and Hispanics.
Who has deep ties to the Chicago political machine whose members include men being indicted on criminal charges.
Who was the senator who Freddie Mac and Fannie May gave the most money to before the economic crisis.
Who says he will sit down personally with terrorists focused on the destruction of the Jewish people.

This unknown is going to be giving the keys to move USA armies around the world, to be given the ability to spend the wealth of Americans, to determine the future of judges on the courts, to lead the most powerful country in the world with nuclear weapons, unchecked without a republican house or senate.

Are you serious? This is starting to sound very much like when Hitler was given power. Seriously. Yet the democrats are pulling off the homeless off the street and promising them meals to vote for Obama. How is so many so blind? Wake up America. We don't need another depression and world wars. He will say whatever you want to hear, to get into office... but what is his real agenda Who is really Obama? Many say the anti-christ - but even if he is not, he is just not Presidential material - not for the USA. Wake up America, wake up world... the world is at stake here.

Posted by: AnAmericanVoice | October 8, 2008 2:37 PM

Capitalism, like previous socioeconomic systems, will produce internal tensions which will lead to its destruction.
Just as capitalism replaced feudalism, capitalism itself will be displaced by communism.

John McCain
:)

Posted by: 876jnr | October 8, 2008 2:37 PM

So McCain the SPENDER will try to get Congress to fork out another $300 billion to buy back bad debt and mortgage value to true valuations?

This is not NEW ... this is TRYING TO BUY VOTES in the short term and when this Bill does not get passed ... the election is over and the public is left holding the short end of the stick

Posted by: amitchell13 | October 8, 2008 2:33 PM

"it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers." John McCain

Hmmm...
Sounds like the wheels have fallen off the Straight Talk Express.

Posted by: 876jnr | October 8, 2008 2:32 PM

Not only has Obama urged a similar action, but if I recall, there are measures in the bailout bill, that would allow for this, but it hasn't been activated yet.

Posted by: burf | October 8, 2008 2:30 PM

Hey - I want a slice of this pie! Just because I make my monthly mortgage payment on time and have never been late and I am living in a house I can afford - don't exclude me from this program! If the only way I can get some of this wonderful taxpayer funded windfall is to default on my mortgage - sign me up!

Posted by: FirthDavenport | October 8, 2008 2:30 PM

With this proposal John McCain went from my candidate of choice to the lesser of two evils. Socialism is coming - only the degree remains to be seen.

Posted by: mustangfreddy | October 8, 2008 2:29 PM

Pray tell ... what will John McCain try next $800 billion for the rich on Wall Street and all the banks/money lenders. Now, he is a socialist and he wants to buy back bad debt/value on homeowners who made poor decisions?

What will he do next? This is why soft Republicans will now vote for Obama to make it a landslide.

His pacing about the stage at the town hall meeting last evening made us all uneasy.

Look I say it: UNHINGED

Posted by: amitchell13 | October 8, 2008 2:29 PM

As I recall, the GOP was against allowing bankruptcy judges to rewrite mortgage loans... and now McCain wants to bail out all homeowners with negative equity??
Does anyone need more proof McCain has lost his mind? He is definitely to the left of Obama's position.
BTW.. the price tag for this kind of bailout would most likely be north of 2 trillion. Nobody has accused McCain of knowing anything about math.

Posted by: 876jnr | October 8, 2008 2:24 PM

So let me get this straight, McCain’s plan is for the U.S. government to buy up home loans, for the government (a.k.a., We, the people…) to take the loss on their “negative equity” and give them a new loan for a reduced amount. That means he expects all Americans collectively to pay the price of a few people’s bad decisions.

What’s next? I suppose we should buy everybody’s gas-sucking SUV that is now worth a fraction of what they paid for it, take the loss, and give them a new loan for what it is worth today so they can continue to afford to drive it?

If this is what passes for a Republican these days, then I am not a Republican anymore.

Posted by: Ci2Eye | October 8, 2008 2:17 PM

Hopefully they will not include those having trouble making payments on their investment properties.

This is a refreshingly liberal plan from McCain, not sure how this will fly with his conservative base.

Posted by: nowanna3 | October 8, 2008 2:11 PM

This would have been a great alternative to the $700,000,000,000 bailout. Too bad he didn't thin of it before we sold out to Wall St. I just find it ironic that he says we now need a spending freeze, but otherwise all he does is talk about spending. This guy must be the most schizophrenic candidate in history!

Posted by: jeffcorrning | October 8, 2008 2:07 PM

Mark, the problem is more complex than just the adjustable rates; there are all of these OTC derivatives that are artificially created and have no regulations or aftermarket. Often they are tied to bundles of mortgages that were assigned artificially high values and now are almost impossible to accurately value. In these swaps, if one side can't deliver and defaults, the other side is stuck and must also sustain an unexpected loss.

According to the Bank for International Settlements, the total outstanding notional amount is $596 trillion (as of December 2007). Of this total notional amount, 66% are interest rate contracts, 10% are credit default swaps (CDS), 9% are foreign exchange contracts, 2% are commodity contracts, 1% are equity contracts, and 12% are other.

What we've seen is only the tip of the iceberg that we are now scraping against. Most of the world economy destruction lies ahead, and there is little that govt can do to stop it. Eliminate you debt and buy gold.

Posted by: Javalation | October 8, 2008 2:04 PM

MarkInAustin:

Sounds to me like he is claiming it is his:

"It's my proposal," McCain said. "It's not Sen. Obama's proposal. It's not President Bush's proposal."

I really don't care whose idea it is -- if it works, go for it -- but apparently Senator McCain cares a lot about whose idea it is, and the fact is, it is not his idea. Maybe the details of this particular iteration are his, but the concept isn't his.

Posted by: cdaniels2 | October 8, 2008 1:53 PM

The only suspense left in this campaign is wondering each day which John McCain will show up. At the first debate he was the unrepentant Reagan supply-sider, saying that tax cuts for corporations and the very wealthy would spur the economy. Last night he was the liberal socialist saying the government should buy up all the troubled mortgages. I wonder who he will be tomorrow.

Posted by: B2O2 | October 8, 2008 1:52 PM

McCain's proposal (and Obama's) brings up a question that I have had for some time. Most of the troubled mortgages (and the original dominoes that started falling) were adjustable rate mortgages. As rates went up, people began defaulting. Banks and lenders refused to refinance people (on the theory that these customers were suddenly "bad credit risks") at 6% even though they were happy to charge 9% or more to the same folks. How many foreclosures (and bank failures) could have been avoided if the greedy lenders had settled for slightly less profit and accepted 6% interest? Mortgage underwriting guidelines were clearly no obstacle when the bad loans were made, so it is not credible for the banks to cite them now. The disgusting truth is we are now facing mass socialism and the serious loss of our liberties due to the major capital institutions with their grubby fingers in the operations of the government (BOTH PARTIES!) KARL MARX ONCE SAID THAT WHEN THEY HANG THE LAST CAPITALIST HE WILL SELL THEM THE ROPE. Lehman, AIG, Countrywide, et al are quintessential rope sellers.

Posted by: MARKM2 | October 8, 2008 1:47 PM

cdaniels2, it's been bandied about but not seriously by either nominee until just last night. McCain is not saying he "invented" the idea.

Posted by: MarkInAustin | October 8, 2008 1:45 PM

Does the govt buying mortgages sound like a spending freeze? Can McCain really claim to be for both?

Posted by: Javalation | October 8, 2008 1:41 PM

This concept was first raised (to my knowledge) by FDR in about 1932 -- it was seriously considered then and has been discussed off and on in the 75 years since it was first proposed. McCain certainly didn't invent it; even in this election it has been bandied about for at least six months -- Hillary was the first I heard discuss it.

Posted by: cdaniels2 | October 8, 2008 1:37 PM

Gator-ron, I don't believe Obama has suggested the GOVERNMENT purchase the mortgages directly.

Posted by: MarkInAustin | October 8, 2008 1:18 PM

McCain has blown this idea too. If he is serious about turning his campaign around, he had better start explaining how Obama is closer to Bush and why Obama's tax plan are a recipe for disaster. He needs to come up with clear concise response to Obama's email sent today.

"I will fight for the middle class every day, and -- once again -- Senator McCain didn't mention the middle class a single time during the debate." BHO

I will fight for all Americans every day, be they poor, middleclass, or God forbid, rich!

"If you agree that we need to cut taxes for 95% of working families, reduce health care costs, and end the war in Iraq responsibly, then I need your help right now."

Senator Obama is well versed in taking complex issues and turning them into marketing slogans. His health care plan does not address portability, fairness, and cost.

"And if you heard John McCain push more of the same discredited policies, including tax cuts for the wealthy and giant corporations, tax increases on health care, and continuing to spend $10 billion a month in Iraq, then now is the time to act." BHO

If you believe all that, I have some real estate in Florida to sell you!

It is hard to believe this is working, but it is. Class warfare!

http://www.boppoll.com

Posted by: acarponzo | October 8, 2008 1:15 PM

Holtz-Eakin acknowledged that the idea has been bubbling out there but said what McCain is proposing is much more ambitious than anything else. "The senator is interested in timely responses," he said.

It sounds like the McCain campaign is acknowledging that Obama has had that idea but does not want to give him credit. Rather than asking for a reply the economic adviser needs to point out the more ambitious aspects of the plan. Then it gives his opposition an opportunity to address thheir opinion and it gives the voter an idea whether there is something original or whether this is just a self promoting activity.

Posted by: Gator-ron | October 8, 2008 1:09 PM

See Out Takes From Last Nights Debate, Obama and McCain practicing for the debate and the mistakes they made. http://www.watchdebate.com

Watch a video of McCain dropping the F-Bomb
in a video http://www.mccanes.com

So I just saw a new poll come out....Dream tickets for the president. Huckabee/Palin comes out 5 to 1 over McCain/Palin. Perhaps the RNC should switch out McCain for Huckabee, they might have a better chance at the white house this year cause I just can't see Obama loosing at this point. The problem is news stations are already calling the race for Obama.....switch it up and have a chance, or should we all stay home and just let Obama take the white house? see poll at http://www.mccanes.com/watchdebatevp.html

Posted by: pastor123 | October 8, 2008 1:05 PM

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