The McCain Mortgage Plan: Yet Another Reason McCain Is Not Qualified to Be President

When John McCain, onstage on Tuesday night, said "It's my proposal, it's not Sen. Obama's proposal, it's not President Bush's proposal. But I know how to get America working again, restore our economy and take care of working Americans..." people were confused:

• If McCain had a mortgage plan, why hadn't he offered it for inclusion in the Paulson-Dodd-Frank bill?
• How, in fact, was McCain's plan different from the mortgage-relief plan that Frank and Dodd had moved through congress in the summer?

By the following morning, it was clear how McCain's plan was different: it was principally a no-strings-attached present to banks that had made bad mortgage loans, and only secondarily a mortgage-relief program. My numbers suggest that the taxpayers will receive only $120 billion in mortgage value from the $300 billion to be spent on the McCain plan--with $30 billion going as a subsidy to distressed homeowners, and $150 billion going as a present to banks.

When the government gives cash to banks, there should be strings attached: the government should get a stake in cash flows, and possibly rights to control the bank in emergencies.

Other people are too polite to say what they think about the McCain mortgage plan. Seth Walls:

Congressional Republicans Have No Opinion On McCain Mortgage Plan: How seriously are Republican members of Congress treating John McCain's new $300 billion proposal for the government to buy up troubled mortgages?... Republican members of the Senate Banking and House Financial Services committees... not one of which was ready to talk about the GOP presidential candidate's proposal in even the broadest terms.

"I don't think he's worked his way through it at this point," said a spokesperson for Texas Rep. Jeb Hensarling. It proved to be a common theme. Sen. Judd Gregg "hasn't weighed in on that yet," his spokeswoman acknowledged, offering to provide a response later. "I have not heard him say anything about it [McCain's plan]," said a press officer for New Jersey Rep. Scott Garrett, who sits on the Subcommittee on Housing and Community Opportunity.... [T]he editors of the National Review, who called the plan "a full bailout for lenders."... Several GOP offices said they would pass along their boss's view on McCain's plan later. We'll update this story with their their responses if we receive them.

None have.

Comments

[Neal]

None have, knowing it doesn't have to make sense--all it has to do is offer to stop the bleeding for the 10-20% of the homeowners that are underwater and fearing the loss of their homes. The details will only be clear after the election.

I've said it before, this proposal is one that Obama has to be very clever in refuting--it is potentially fatal to his campaign. Arguing against money for home "owners" cannot have come at a worse time. The better tactic, if possible would be to catapult the argument with a further reaching proposal.

Wonkish arguments about this helping the bankers who made the bad loans won't fly with desperate people. Especially if they were told that saving the financial industry was more important than worrying about rewarding the risky behavior of the financiers.

[J]

Listening to NPR's "All Things Considered" I heard David "Why Can't NPR and PBS find a better commentator" Brooks say today that he gave McCain credit for at least having a plan.

It was all I could do to keep from screaming out loud at the radio.

I mean for *(#(#)@'s sake!

*Anyone* can come up with a plan, Brooks! We'd hope a presidential candidate could come up with a rational plan. Wrapping a cow patty around a creamy marshmallow center doesn't make it a yummy treat.

Where did David Brooks come from, and how soon can he be sent back there?

[bakho]

Why should anyone take McCain policies seriously when his own party treats them like a joke?

This financial crisis should be the final nail Republican economic ideology.

Indiana gets a constant barrage of Obama ads. My favorite is the one where he calls "trickle down" a failure. Obama would do the US a BIG favor if trickle down and suppy side became worse insults than liberal.

[christofay]

bakho never hollers.

[Tre]

Brad Delong,always a respectable authority who we are lucky to have. But we cannot forget the importance of editing our posts before publishing them. "he editors" and "their their"?? I make these comments because I want your brilliance to be accessible, not for any other reason.

Thank you for your commentary. It enriches our collective experience. :)

-Tre (ciaobella)