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Obama Ad Questions McCain Mortgage Plan

By Howard Kurtz
The Ad: (Narrator:) In a time of crisis, our leaders' judgment is tested. On Tuesday, an announcement.
(McCain:) I would order the Secretary of the Treasury to immediately buy up the bad home loan mortgages in America.
(Narrator:) On Wednesday, the details. McCain would shift the burden from lenders to taxpayers, guaranteeing a loss of taxpayer money. Who wins? The same lenders that caused the crisis in the first place. Putting bad actors ahead of taxpayers? We can't afford more of the same.

Analysis: This Barack Obama ad again tries to tie John McCain to the mess on Wall Street, this time by using his own words at Tuesday's presidential debate.

The $300-billion plan, which would be funded under existing legislation, has drawn criticism from across the political spectrum. The ad shows an article from CNNMoney.com that says, "McCain mortgage plan shifts costs to taxpayers." Aides to the senator from Arizona don't deny this, saying that the effort is justified because of the magnitude of the banking crisis and the need to stabilize the housing market.

Media reports have criticized the plan from the left and the right, saying that it would lower rescue standards to the point that lenders would reap a windfall (and irresponsible homeowners would be bailed out). In that sense, it is accurate to say "the lenders that caused the crisis" would benefit. What the spot doesn't mention is that Obama voted for the $700-billion federal bailout that, with stricter standards, would also aid lenders by buying up distressed mortgages.

The senator from Illinois, whose aides have decided the ailing economy is the overriding issue, has hammered McCain on the subject in recent ads. The "more of the same" line, along with an obligatory shot of McCain with President Bush, has become a signature element.

By Web Politics Editor  |  October 9, 2008; 5:13 PM ET
Categories:  Ad Watch , Barack Obama , John McCain  
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Comments

Don't know whether to cry or laugh at Bush-McCain's nationalizing of crucial sectors of our economy, not to mention the bureaurcratic monstrosity implied by McCain's desperate roll of the dice.

Posted by: FirstMouse1 | October 10, 2008 10:35 AM | Report abuse

Another ill planned, populist quick fix by McCain designed to get votes. He'll forget all about it if he gets elected.
John McCain feels your pain...yeah right.
John McCain has an agenda, and average Americans aren't included in it.
Just more lies, from a liar.

Posted by: tommyd60 | October 10, 2008 12:42 AM | Report abuse

I have a better plan: have a national lottery every week that awards a citizen and resident of the US one million dollars.

It'll only cost the government 52 million dollars. That's nothing -- just shave it off the almost 100 billion dollar defense budget.

And it's a lot more fair than bailing out delinquent homeowners.

Posted by: sobes | October 9, 2008 9:43 PM | Report abuse

How can you believe Sen. Obama. He could not even handle his own mortgage when he bought his house. He needed the help of a convicted felon to close the deal on his home.

I will not be surprise if Tony Rezco becomes his Housing Czar when he becomes president.

Posted by: tim591 | October 9, 2008 9:23 PM | Report abuse

Hey, MarkInAustin, your posts sound like you are channeling JakeD.

Posted by: dcwsano | October 9, 2008 7:54 PM | Report abuse

What a bizarre plan! How much thought had he given to that before it came out of his mouth?

Posted by: pcc7407 | October 9, 2008 7:23 PM | Report abuse

coder85173, that's not a "plan" because there's no guarantee that credit markets / banks will loosen once it's implemented. By getting directly involved, either with equitity interests in the banks or purchasing the mortgages outright, we in fact get that money flowing. Or, we could do what Ben Stein suggested and divide the $700 billion to each American directly.

Posted by: MarkInAustin | October 9, 2008 7:08 PM | Report abuse

McCain isn't suggesting a plan - he's just trying to lock taxpayers into the worst deal imaginable so as to give full subsidies to the bad loans. It is a way to absolutely guarantee that we lose money from the $700 billion "rescue package." If this is McCain's idea of bold leadership, count me out.

Posted by: johnsonc2 | October 9, 2008 7:02 PM | Report abuse

The Obama Economic Solution

1) The US Treasury, buys a Preferred Equity interests in US Banks.

Thereby giving, the Banks,the needed capital to restart the US financial system.
The US Taxpayers then has a vested interests in the Banks and a guaranteed share in future profits.

The Treasury would also have a seat on the board of all Banks, who receive these taxpayer funds.
This is the Tax payer getting something for there money.


2) A freeze on all foreclosures Homeowner's Primary Residences Nation wide.

This freeze will be accompanied by a program, whereby Banks and all lenders, re-negotiate the balance and principle of the mortgage, with the home owner, along Federally Mandated guide lines.

In order to be eligible for this program, all homeowners will be required to keep making mortgage payments, along Federally mandated Guidelines, during this freeze and until the mortgage in renegotiated with the Mortgage holder.

This program will only apply to those mortgages for the Homeowner's Primary Residence.

Posted by: coder85173 | October 9, 2008 7:00 PM | Report abuse

What kind of Leader would actually stand up before a crowd of people and invoke anger and hatred towards another opponent, even to the point of riot and does nothing to calm the crowd? Has Mccain lost his integrity? This is the one who said he would run an honorable campaign. What happened?
For the last week John Mccain and Sarah Palin have been giving stump speeches where they have tried to discredit Obama and provoke crowds to anger. Some people in the crowd shouting out words like traitor, terrorist, ect... One man even shouted out kill him. John Mccain and Sarah Palin said nothing nor did they do anything to calm the crowd. They continued to feed negativity to the crowd, as the crowd shouted obscenities about Obama. Is this what our Leaders do, incite riots? We are talking about a U.S Senator and a U.S. Governor, who could very well be the next President and Vice President of the United States. Yet they are rallying people to the point of riots.

Is this what America has been reduced to? Is not America considered to be Ambassadors of peace? I wonder what other nations think of us when they see this kind of behavior in the news? As an American I am completely embarrassed.

Posted by: Tippy1 | October 9, 2008 6:45 PM | Report abuse

At least he has a plan. All Obama is good for is shooting down ideas like this, or the gas-tax holiday, etc.

Posted by: MarkInAustin | October 9, 2008 6:26 PM | Report abuse

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