When John McCain announced his "new" plan to address the financial crisis by having the government directly buy up troubled mortgages, our first response was "wait a minute...that's already in the bailout bill"....

[Our] initial conclusion was that this proposal was a rather non-consequential ploy by McCain to provide cover for the fact that he has tended to be either late, on the wrong side, or frenetic and all over the map on policy responses to our current financial crisis.

But today we learned of a detail that makes his plan significantly different -- and much worse. The McCain plan uses taxpayer dollars to buy distressed mortgages at their full, face value from the banks and lending institutions that are currently stuck with them. Only then, after we the taxpayers have fully absorbed the cost to the lender of these troubled loans, does the homeowner get the benefit of the lower principal.

So the phrase "Lenders in these cases must recognize the loss that they've already suffered" is no longer operational?

How long did it last? What, a day in fruit fly years?

Hey, say it so, John.

As president of the United States, Alan, I would order the secretary of the treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes -- at the diminished value of those homes and let people be able to make those -- be able to make those payments and stay in their homes.

Is it expensive? Yes. But we all know, my friends, until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy. And we've got to give some trust and confidence back to America.

I know how the do that, my friends.

John McCain is:

(A) Erratic
(B) Confused
(C) Lying
(D) All of the above

just an observation.

In a crises like this it is AMAZING how republicans shift left for the solutions. Can any rightie admit or at least talk to this "conservative" free market solution to the problem?

simple amazing.

We'll buy up mortgages with money we don't have.
John McCain should either talk about how he intends to pay for buying up mortgages or else STFU.
Tax the rich! Til we do it is all a shell game.

The liberal media keep blaming McCain for not being specific, and when he gets specific the media turns foggy --- that's how they are carrying water for Obama.

A rescue measure for Wall Street has been passed. A rescue measure for Main Street should be passed. McCain is for Main Street and he has shown his leadership with this mortgage buyout proposal --- so that ordinary folks who still has some financial means can keep their homes and make adjusted payments.

McCain says one thing to 63 million Americans Tuesday night.

Within nanoseconds he's corrected by his campaign, when the 63 million Americans are no longer watching.

McCain believes, as do all good Conservatives these days, that when we play the American people must pay.

McCain: Profile in Courage.

~TAKITSEZ

In a crises like this it is AMAZING how republicans shift left for the solutions. Can any rightie admit or at least talk to this "conservative" free market solution to the problem?

simple amazing.

#5 | Posted by truthhurts at 2008-10-09 08:24 AM | Reply | Flag

Yes...at least one can. Ron Paul. The current bipartisan solution is shit and so are the McCain additional solutions. Real conservatives are against this current administration economically and from a foreign policy standpoint. Educate yourself at www.campaignforliberty.com

Still the same plan with a nano correction. McCain is for Main Street.

Homeowners will find McCain's concrete plan more palatable than Obama's platitudes --- some grounds will shift but one is not sure those pollsters can find them. You never know!

so mccain is a socialist?

The McCain plan uses taxpayer dollars to buy distressed mortgages at their full, face value from the banks and lending institutions that are currently stuck with them. Only then, after we the taxpayers have fully absorbed the cost to the lender of these troubled loans, does the homeowner get the benefit of the lower principal.

Fred the Moron buys a $500,000 house with $10 down by getting a mortgage from The Bank of Pigs.

He has been paying an interest only loan for a year or 2, but suddenly his rate jumps and he has to start paying more. Meanwhile his house is now "valued" at $300,000

Mr. McCain comes along and says I will give bank $500,000 er excuse me $499,990 and Fred the Moron will pay the federal govt $300,000.

Bank of Pigs presidents says YEEEEEEHHHHHAAAAAA!!!! junkets for everyone!

Fred the Moron says YEEEEEEEHHHHHAAAAAAA!!! I sell house for PROFIT!!!!!

Ordinary Citizen says, where all my money go?

in that scenario $200,000 goes WHOOOSSHH!! lost, never to be seen again.

that is what McCain is talking about.

Help is on the way!

"In a crises like this it is AMAZING how republicans shift left for the solutions. Can any rightie admit or at least talk to this "conservative" free market solution to the problem?"

I understand they are not the party leaders, but weren't certain Republicans the most outspoken critics of the bailout?

Federal Reserve Board Abolition Act (Introduced in House)
HR 2755 IH
110th CONGRESS
1st Session
H. R. 2755
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
June 15, 2007
Mr. PAUL introduced the following bill; which was referred to the Committee on Financial Services
A BILL
To abolish the Board of Governors of the Federal Reserve System and the Federal reserve banks, to repeal the Federal Reserve Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `Federal Reserve Board Abolition Act'.
SEC. 2. FEDERAL RESERVE BOARD ABOLISHED.
(a) In General- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Board of Governors of the Federal Reserve System and each Federal reserve bank are hereby abolished.
(b) Repeal of Federal Reserve Act- Effective at the end of the 1-year period beginning on the date of the enactment of this Act, the Federal Reserve Act is hereby repealed.
(c) Disposition of Affairs-
(1) MANAGEMENT DURING DISSOLUTION PERIOD- During the 1-year period referred to in subsection (a), the Chairman of the Board of Governors of the Federal Reserve System
(A) shall, for the sole purpose of winding up the affairs of the Board of Governors of the Federal Reserve System and the Federal reserve banks
(i) manage the employees of the Board and each such bank and provide for the payment of compensation and benefits of any such employee which accrue before the position of such employee is abolished; and
(ii) manage the assets and liabilities of the Board and each such bank until such assets and liabilities are liquidated or assumed by the Secretary of the Treasury in accordance with this subsection; and
(B) may take such other action as may be necessary, subject to the approval of the Secretary of the Treasury, to wind up the affairs of the Board and the Federal reserve banks.

Homeowners will find McCain's concrete plan more palatable.....

I won't cause essentially I will be paying banks for other people's bad mortgages.

I wont be benefitting from this proposal, i will be paying taxes which will be used to buy the mortgages from the banks.

thanks, great deal for me.

(2) LIQUIDATION OF ASSETS-
(A) IN GENERAL- The Director of the Office of Management and Budget shall liquidate all assets of the Board and the Federal reserve banks in an orderly manner so as to achieve as expeditious a liquidation as may be practical while maximizing the return to the Treasury.
(B) TRANSFER TO TREASURY- After satisfying all claims against the Board and any Federal reserve bank which are accepted by the Director of the Office of Management and Budget and redeeming the stock of such banks, the net proceeds of the liquidation under subparagraph (A) shall be transferred to the Secretary of the Treasury and deposited in the General Fund of the Treasury.
(3) ASSUMPTION OF LIABILITIES- All outstanding liabilities of the Board of Governors of the Federal Reserve System and the Federal reserve banks at the time such entities are abolished, including any liability for retirement and other benefits for former officers and employees of the Board or any such bank in accordance with employee retirement and benefit programs of the Board and any such bank, shall become the liability of the Secretary of the Treasury and shall be paid from amounts deposited in the general fund pursuant to paragraph (2) which are hereby appropriated for such purpose until all such liabilities are satisfied.
(d) Report- At the end of the 18-month period beginning on the date of the enactment of this Act, the Secretary of the Treasury and the Director of the Office of Management and Budget shall submit a joint report to the Congress containing a detailed description of the actions taken to implement this Act and any actions or issues relating to such implementation that remain uncompleted or unresolved as of the date of the report.

"We have a greater moral responsibility to act than those who live in ignorance. Once you become knowledgeable you have an obligation to do something about it."

www.campaignforliberty.com

McCain's plan is to buy high and sell low - I am no economics professor, nor do I have a degree in finance, but I don't think that is how you fix a financial crisis.

of course, the free marketers or conservative's approach (the Ron Paul model) will require the failing of the current economy.

We are talking the collapse of banking, the loss of the majority of people's retirement savings.

his solution appears to be destroy it to remake something in its place.

nice in theory perhaps but do we really want to see that happen? I for one dont want to see my life savings evaporate.

again, think about McCain's plan

Fred buys a house for $500,000 with a $500,000 mortgage

House goes down in value to $300,000

Fred paid ZERO principal payments-that is the interest only, adjustable rate mortgage, zero down mortgages that are at the root of the problem.

John McCain buys the mortgage from the bank at $500,000 with fixed mortgage, requiring Fred to pay principal presumably.

a couple years go by, housing values go up and Fred realizes a profit.

and we paid for it.

I won't cause essentially I will be paying banks for other people's bad mortgages.

Posted by truthhurts

Agreed. Why is can't there be a reward based on credit ratings for people who have played by the rules?

What is so incredibly idiotic about McCain's plan is that just several days before he announced it he voted for the bailout which contains the provision to allow the Sec. of the Treasury to buy American's mortgages. It is already in the bill. It is just a matter of Paulson deciding that is what he wants to do with the money.
The real problem is that the money is more borrowing instead of responsible pay as we go with taxation.
No one seems to want to deal with the idea that reducing taxes created much of this problem and it will continue to worsen until we reverse course.
Until we recognize the FACT that conservative solutions have NEVER in the history of this nation solved economic problems, they have only created them. The reason for this is quite simple, you can't spend money you don't really have. If the government spends money it has to enact taxes to collect the revenues to pay for it. Either recognize that simple fact or get used to a failing economy and poverty.

This is the correct place to make a bailout work. But floating lenders by making taxpayers owe more is a ticket to nowhere.

Banks and some borrowers must eat their respective equity losses. Those whose loans can be saved through conversion to fixed rates will hel everyone and should be implemented. It will return stability to the real estate market quicker.

well that's a novel idea: buy off people with their own money.

McCain is becoming a true Democrat.

well that's a novel idea: buy off people with borrowed money.

McCain is a true Bushie.

I'm going to cut spending right after I spend all of our money!

~John "The economy is strong" McCain

"Senator Obama has proposed nearly $1 Trillion in new spending. I on the other hand will buy everyone's mortgage and refinance it to you for $0.50 on the dollar."

-John "the forked tongue devil" McCain

"Senator Obama has proposed nearly $1 Trillion in new spending."

And he has also told everyone that if you earn over $250,000 you will be paying higher income taxes.
That's leadership, McCain is just saying anything he thinks will get him votes.

And the conservatives are going for this? Really? Come on! I thought you guys were all about LESS government interference! Hey, don't get me wrong - any time the government wants to buy up my mortgage at full value and then renegotiate at current market price, saving me a bundle, I'm all for it! LOL! Sure! Just one thing - wasn't this already proposed and isn't that what the government is already doing? Buying up bum mortgages? And didn't the Dems want a provision that would allow bankruptcy judges to re-negotiate mortgage rates and payments? Seems to me the repulsicans got that one out of the bill....But this is acceptable to you guys? HA!

"And didn't the Dems want a provision that would allow bankruptcy judges to re-negotiate mortgage rates and payments?"

And the amount of the principal, that is the difference between Obama and McBush. Under Obama the banks would still feel the loss from their bad decisions, under McCain the taxpayers would accept that loss.

And the conservatives are going for this?
Posted by DawnGlo

I'm not. But what has that got to do with McModerate?

Help is on the way!
#12 | Posted by takitez at 2008-10-09 09:11 AM

A fiery horse with the speed of light.
A cloud of dust, and a hearty "Hi-ho Silver!"
Here comes John McCain...The Loan Rearranger!
~TAKEITSEZ

Yet another absolutely stupid idea from McCain. Between his cap-and-trade and McCain-Feingold abominations, his flipflopping on tax cuts, his first choice of Joe Lieberman to be his VEEP--we're now to the point where the only good reason to vote for McCain is the hope he might die in office, and have a real conservative take over.

Not reason enough. The fact that Obama would (probably) be much worse doesn't do it for me. 3rd party for me this year, and the fact that I don't live in one of the swing states makes it easy for me.

Help is on the way!

#12 | Posted by takitez

hopefully for YOU... in the form of a white van with men dressed in white with a nice white straight jacket in your size.

renegotiating rates and timeframe = good
sticking the taxpayer with the difference in mortgage value and home value = bad

McCain's political instincts are pretty bad. By suspending his campaign to go back to Washington and work on the bailout, he ended up owning the responsibility for the bailout. By proposing a new bailout with a $300 billion pricetag, he's testing the patience of voters who are already in a rage just thinking about the first bailout.

If he really thinks this is the way to go, he needed to lay the groundwork for it and put a bunch of supporters on TV to sell it to skeptical voters.

Instead, it just feels like another Hail Mary pass, but this time there's no receiver downfield.

Instead, it just feels like another Hail Mary pass, but this time there's no receiver downfield.

Posted by rcade at 2008-10-09 11:50 AM | Reply

Translation please Sir. Thanks.

Larry

And McCain said in the debate we don't have to have priorities about how to spend the money, we can do it all at once. We are the greatest country on earth.

He has lost any reason he may have had

-Instead, it just feels like another Hail Mary pass

'Perzactly!

That's why you are the Blog God and receive such tremendous worship around here.

of course, the free marketers or conservative's approach (the Ron Paul model) will require the failing of the current economy.

We are talking the collapse of banking, the loss of the majority of people's retirement savings.

his solution appears to be destroy it to remake something in its place.

nice in theory perhaps but do we really want to see that happen? I for one dont want to see my life savings evaporate.

#18 | Posted by truthhurts at 2008-10-09 09:15 AM | Reply | Flag:

LOL. So you think abolishing the Federal Reserve will make your life savings evaportate. Help us from clowns like you who can't educate themselves whatsoever. What a shame and what a knee jerk reaction.

www.campaignforliberty.com

evaportate=evaporate (oops, partial LM syndrome)

I keep thinking of a former president and what he did to combat a failing economy. My only real question is these days....how long before even the right wing tools start chanting...FDR, FDR, FDR!

It's just a matter of time and of swallowing pride.

what he did to combat a failing economy

You mean start WWII?

"You mean start WWII?
#43 | Posted by ELCIDCE90 at 2008-10-09 12:28 PM"

FDR started WWII?
Must be time to reevaluate your medication regimen.

WOW! Repubs have hit a new low......

What happened to the mantra of smaller government and lower taxes?

The "right" needs to get an education. It is not an coincidence that much of Academia is liberal.

NO EDUCATION = IGNORANCE = "Conservative Views"

ride on, briefly educate us how will disbanding the central bank help us

"in that scenario $200,000 goes WHOOOSSHH!! lost, never to be seen again.

that is what McCain is talking about.

#11 | Posted by truthhurts "

Question: $200,000 - isn't cancelling that debt income to the borrower?

Suddenly, the homeowner, who though the mortgage deal was great, is suddenly thrust into the 'rich america' bracket on the tax tables.

The "right" needs to get an education. It is not an coincidence that much of Academia is liberal.

NO EDUCATION = IGNORANCE = "Conservative Views"

#45 | Posted by ak_patel
* * * *

Uh huh. I keep forgetting about all those Ivy League Obama-voting academic overachievers who hang out in the projects in Detroit, Philly, LA, Chicago, DC . . .

It's not a coincidence that much of the American underclass is liberal. Obama will win 96% of those votes, and would win them all if the other 4% could read the ballot they were given a carton of Newports to fill out on his behalf.

OK ELCID let's just return to the economic policies of Dwight D. Eisenhower.

NINJA's for McCadaver!

John-if you're really worried about America's economy-he's what you do-sell 6 of your houses, 11 of your cars and Cindi's jet. Live on your Senator's salary, which is still 3-4 times what Joe six pack earns, and stop cashing your SS and disablilty check. Take Cindi's 100 mill and start buying these mortgages yourself.

Or donate the money to the VA.

From Karl Rove hisownself:

"For those open to Mr. McCain, it is unclear how they will respond to his plan to order the Treasury secretary "to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes." It came across as both impulsive and badly explained. No experts were ready to defend it. No explanatory paper was flung at journalists. Nor were surrogates like Mitt Romney briefed. But the campaign did admit it borrowed the idea from Hillary Clinton."

But the campaign did admit it borrowed the idea from Hillary Clinton.
posted by NorthGuy3

I didn't know the American dream was to fail upwards.

Who would have thought John McCain was such a large fan of welfare?

Now he just needs to find a way to legislate an incentive for people to work harder so they can continue to subsidize their stupid neighbors. Equality over fairness! What could possibly be wrong with that?

So-let me get this straight.
The R-tards fuck up the economy.
Turn around and scream at the Dems for fucking it up.
Then, when no one believes their tax cuts for the rich will work to fix it-they use Democratic solutions as their own?

How typical.

So-let me get this straight.

STOP!! You have already approached a point where you are unable to continue.

FDR started WWII?
"You betcha!
He stuck those ships right into a well marked Japanese bombing range! He let Prescott Bush finance the nazis, knowing they would join Japan in declaring war on America after FDR caused the poor japanese, who were only invading countries others were too lazy to invade to bomb the fleet by messing with their magnets!

Jews are creepy when they run the world."

Saint sarah.

It's not a coincidence that much of the American underclass is liberal. Obama will win 96% of those votes, and would win them all if the other 4% could read the ballot they were given a carton of Newports to fill out on his behalf.

#48 | POSTED BY RIGHTISRIGHT

______________________
RightisWrong...

Your hate and stupidity seethes through your comments. I will give you that not all Repubs are ignorant, and in fact knowingly ignore real world facts to suit their superiority complex.

That's why you are the Blog God and receive such tremendous worship around here.

I thought it was because of the fear I inspired with my occasional thunderbolt of vengeance.

RCade:

Thunderbolts? I could have sworn you were just breaking wind.

/sorry, had to, just couldn't resist the "be an asshole for the sake of being as asshole" button. It's shiny and candy-like!

(bonus points for those who know the reference!)

Your hate and stupidity seethes through your comments. I will give you that not all Repubs are ignorant, and in fact knowingly ignore real world facts to suit their superiority complex.

#57 | Posted by ak_patel
* * * *

I've no superiority complex. I'm a nobody.

But I do know douchebaggery when I see it, even at a great distance. I can even spot it when it's coming from a Motel 6 proprietor above the Arctic Circle.

Here is your problem:

Sure would be nice if there was a Republican running this year. Fact is, a "Neo-Con" is just a person with a 1975 Democrat viewpoint. A Democrat is now a Communist from 1960.

Decadence - the country is too good for its own survival. Nobody knows what it's like to struggle anymore.

True enough Spiel.

Decadence - the country is too good for its own survival. Nobody knows what it's like to struggle anymore.

Yes, obviously you have forgot.

"Nobody knows what it's like to struggle anymore."

Oh...they will.

True enough Spiel.

Coming from the bourgeoisie makes this even more humorous.

How are those stocks doing, for you I suppose just fine.

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).

The new mortgage would be an FHA-guaranteed fixed-rate mortgage at terms manageable for the homeowner. The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of "negative equity" in some homes. Funds provided by Congress in recent financial market stabilization bill can be used for this purpose; indeed by stabilizing mortgages it will likely be possible to avoid some purposes previously assumed needed in that bill.

The plan could be implemented quickly as a result of the authorities provided in the stabilization bill, the recent housing bill, and the U.S. government's conservatorship of Fannie Mae and Freddie Mac. It may be necessary for Congress to raise the overall borrowing limit.

I don't own stock. Been in cash since Aug 2007.

Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).

You mean the laws he deregulated are to come back for those who were faulty?