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McCain Rips Off Obama Mortgage Purchase Idea

Bumped and Updated: Today McCain's campaign staff offered enough details about the McCain version of this proposal that Obama called it a big mistake:

McCain's proposal to spend $300 billion in federal funds to buy distressed mortgages was a highlight of Tuesday's presidential debate, and it seemed to catch Obama off guard. At first, Obama's campaign said he had made similar proposals and there was nothing new in McCain's remarks.

But after McCain aides offered more details Wednesday, Obama's campaign shifted gears.

The plan would cause 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," Obama economic adviser Jason Furman said in a statement. "The biggest beneficiaries of this plan will be the same financial institutions that got us into this mess, some of whom even committed fraud."

The statement did not detail why the plan would fail. Some mortgage officials, however, say the great majority of bad loans are owned by large pools of investors who would sell them only at prices much higher than their current worth.

If McCain's plan would have the government pay all or most of the difference between a home loan's original value and its renegotiated lower value, as these officials understood it to do, it could prove costly.

----original post begins here----

Everyone is expressing a certain degree of surprise over John McCain's announcement during last night's debate regarding the purchase of mortgages - it was a new concept for McCain, something we hadn't heard from McCain at any time in the past.

"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 values of those homes -- and let people be able to make those payments and stay in their homes."

Wonder where McCain came up with this idea?

"It's my proposal," McCain said. "It's not Sen. Obama's proposal. It's not President Bush's proposal."

McCain is desperately trying to establish himself as a thinker, so he ripped off Obama and then claimed the idea as his own, that's where he came up with this idea - he ripped it off. It's just another McCain campaign stunt.

In fact, at a news conference on Sept. 24, Obama said, "we should consider giving the government the authority to purchase mortgages directly instead of simply purchasing mortgage-backed securities."

Days later, in a news release, he said he would "encourage Treasury to study the option of buying individual mortgages like we did successfully in the 1930s."

"Senator Obama has been consistently calling for policies that would buy up mortgages and restructure them so that families can stay in their houses," Obama economic adviser Jason Furman said. "He continues to support that and believes Treasury should use its authority in whatever way it can to bring about that goal, including buying mortgages directly."

Related: See the 13 minute video documentary everyone is talking about.
"Keating Economics: John McCain and the Making of a Financial Crisis"
[link | download]


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Comments (7)

codekeyguy:

Lee,
It's all in how you say it. For example: Obama "improves" on a weak McCain suggestion vs. McCain "RIPS OFF" Obama's idea.
WizbangBlue has become my refreshing antidote to rational thought.
Zing!
(I just couldn't stay "civil". Just not in my nature!! HaHa!!)

Steve Gross:

I wondered where McCain came up with such an idiotic idea.

Allen:

WOW! CKG admits that Mcinsane wants socialization for housing. Doesn't that make him a communist? The GOP likes to use that when they cry about the Demo's, so what is the difference?

Oh I know, it's a GOP person who said that, so it's ok.

Hillary Clinton proposed the idea. I wonder what the wingers think of McCain now?

http://online.wsj.com/article/SB122230767702474045.html?mod=article-outset-box

Lee Ward[TypeKey Profile Page]:

The wingers know McCain would never follow through on the promise - that he's just pandering for votes.

It's another stunt. Another pathetic, desperate stunt from a man who's running out of ideas and out of time.

Today's Gallup Daily Tracking poll has Obama up by 11 - he was up by 9 yesterday and up by 8 the day before.

I suspect all of this mud slinging from Caribou Barbie is having the opposite effect - but then - maybe Obama would be ahead by 12 or 14 if they weren't throwing the mud?

Jules:

Funny thing is, the Obama camp then comes out and says the idea is crap.

http://news.aol.com/political-machine/2008/10/08/obama-rejects-own-mortgage-idea/?icid=100214839x1211231170x1200631970

Seems like both Sen Obama and Sen McCain need to get a clue.

A vote for either party is a sign of how far you want to take your own stupidity.

Renee Kofi-Bruce:

This is not the first idea McCain has coopted directly from Barack example: the "Change" effort they mounted earlier this year? I think the Dems are being very careful not to be too specific about their policies because the Republicans are operating as "takeover artists."


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