Posted on 10/09/2008 9:20:36 AM PDT by BGHater
Sen. John McCain (R-Ariz.) made an overnight change in the homeowner bailout he proposed at Tuesday’s presidential debate, making it more generous to financial institutions and more costly for taxpayers.
McCain's staff says it was always meant that way.
When McCain sprang his surprise idea at the start of the debate in Nashville, his campaign posted details online of his American Homeownership Resurgence Plan, which would direct the government to buy up bad home mortgages, allowing strapped people to keep their property.
The document posted and e-mailed by the McCain campaign on Tuesday night says at the end of its first full paragraph: “Lenders in these cases must recognize the loss that they’ve already suffered.”
So the government would buy the mortgages at a discounted rate, reflecting the declining value of the mortgage paper.
But when McCain reissued the document on Wednesday, that sentence was missing, to the dismay of many conservatives.
That would mean the U.S. would pay face value for the troubled documents, which was the main reason Sen. Barack Obama (D-Ill.) gave for opposing the plan.
A McCain campaign official explained the change: “That language was mistakenly included in the initial draft, and it’s been corrected. It doesn’t reflect the intentions of the initiative, which necessitated the correction and the removal of the sentence. A simple mistake.”
Obama Campaign Economic Policy Director Jason Furman said in the campaign statement opposing McCain's plan: "John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money and put them at risk of losing even more if home values don’t recover. The biggest beneficiaries of this plan will be the same financial institutions that got us into this mess, some of whom even committed fraud."
(Excerpt) Read more at news.yahoo.com ...
Mr. “Straight Talk” sure doesn’t seem to (and really, never did) know an expansion in government that he didn’t like.
We are heading toward the Corporate State model. Well, I hear those guys make the trains run on time ...
Only problem is the train drivers nowdays text message instead of paying attention.
We have the most dangerously inexperienced, marxist candidate in our lifetime running as president and all we have to fight back with is this bag of wind. *sigh*
Just to help with the debate, here’s some conditions for relief under the McCain housing plan (go to: http://www.johnmccain.com/Informing/Issues/Read.aspx?guid=b9af0d4c-9c0e-4a97-b27f-19df8cfec83d):
The McCain resurgence plan would be available to mortgage holders that:
* Live in the home (primary residence only)
* Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).
From my understanding of the plan, he basically wants to renegotiate mortgages in which “The existing debts are too large compared to the value of housing.” This will reduce default uncertainty for homeowner that CAN pay for their debt, as long as the debt is not too expensive.
Again, this is what I understand from the plan.
Please make it stop.
I hope Obama does not make a commercial on this.
Just drop this, John.
Maybe people will forget about it, if you just drop it now.
The long and short of it is, we're screwed.......any which way we look at it.
Which John McCain do you like best? The socialist or the flip-flopper?
Ah, our best hope...
Instead of just conceding with ignorant acts day by day, why don’t you just get it over with Juan, and just concede the election all at once.
If we could have a worse candidate, I’m not sure who it would be (don’t tell me — it would only depress me more)
I would find this plan acceptable ONLY if, when the house is eventually sold, the profits (if any) from the sale are returned to the taxpayers (up to the amount that the mortgage was reduced). Maybe that is already part of this plan, but I haven’t heard so.
At the rate McCain was promising handouts at the last debate, I’m not sure who we can afford less...or more, McCain or Obama.
Obama and Clinton tried to out-handout each other during the Dem primaries.
Now, McCain is trying to out-handout Obama in the general.
And more news: DOW 9,116.33 -141.77
Which John McCain do you like best? The socialist or the flip-flopper?
The jury is out, but he better flip this one over fast!
Now, McCain is trying to out-handout Obama in the general...
Both of these guys are very loose with our money. A tax revolt is beyond due......
McCain must have used that “home lobotomy kit”
Now THAT makes some sense!
Agree - anyone who gets this sort of bailout should have to payback out of profits.
Downside with this is people might refinance and then dump house at lower market value as they have no incentive to hold onto to it...should have a clause that makes the owner pay back at sale - even if there is no profit.
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