McCain came up with the mortgage rescue plan?
I watched the second Presidential debate last night and I heard one thing that really bothered me about the economy.
John McCain said if he were elected, he would order the Secretary of the Treasury to buy up bad mortgages from individuals who borrowed from predatory lenders and get them fixed rate mortgages at the property’s current, deflated, value, allowing people to stay in their houses. I’m all for people being able to stay in their homes.
But didn’t we already rescue the economy for $700 billion last week? And AIG the week before that and Fannie Mae and Freddie Mac a couple of weeks ago?
Part of the $700 billion bill includes the power for the Secretary of the Treasury to deal with the mortgage crisis as well as the rest of the problems of the investment banks and credit markets. McCain didn’t come up with the idea, and neither did Obama. Obama started the conversation, but other Senators and Representatives actually came up with the ideas and language to deal with this.
According to many news sources, conservative and liberal, this will cost about $300 billion, nearly half of the rescue package. How do they decide whose mortgages to buy? Why buy up the mortgages directly and not securities in the investment banks who created securities backed by bundles of the bad mortgages? There is another plan already signed into law to deal with this that will work and probably make a profit in the long run. If the government buys up the bad mortgages directly, it gets no collateral or securities that can be held and sold later for more than the buy prices. This plan would definitely cost the taxpayers a boat-load of money that the current $700 billion bill won’t.
McCain voted for it and then said he was against it and would veto the bill if he were President. Now he wants $300 billion of it for bad mortgages? Can you say flip-flop? McCain seems to have more waffles than a house of pancakes. Where the hell does he stand on this issue???
The stock market dived again today and the Dow Jones Industrial Average closed at 9258.10. One year ago the Dow closed above 14,200, down 53% since this time last year. If this move was made to try to increase some confidence, it didn’t work.
As a taxpayer, I’m really angry now.
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Comment by King Richards | October 17, 2008