In Debate, McCain Touted Mortgage Plan Already Proposed By Obama

It was the first question of the evening: how to turn the economy around and help those ensnared in the housing crisis. And in John McCain's first answer, he bragged about a bold new proposal he would implement as president -- that Obama already fought for in the recently passed bailout bill.

"You know that home values have, retirees, continues to decline," McCain started, somewhat unsteadily. "And people are no longer able to afford their mortgage payments. As president of the United States, Allen, I would order the Secretary of 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 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 to do that, my friends. And it's my proposal, not Senator Obama's proposal or President Bush's proposal."

It took awhile (by rapid response standards), but by the end of the debate, Obama campaign was all over the claim.

National press secretary Bill Burton noted that the "rescue bill includes authority for the Treasury Department to buy 'residential or commercial mortgages.'" Moreover, he noted, Obama has made that proposal twice previously.

At a Sept. 23 press conference, Obama said: "For example, we should consider giving the government the authority to purchase mortgages directly instead of simply purchasing mortgage- backed securities. In the past, such an approach has allowed taxpayers to profit as the housing market recovered. This is not simply a question of looking out for homeowners; it's doubtful that the economy as a whole can recover without the restoration of our housing sector, including a rebound in the home values that have suffered dramatically in recent months."

And in an Oct. 1 statement, Obama repeated the idea. "We also must do more than this rescue package does to help homeowners stay in their homes. I will continue to advocate bankruptcy reforms to help families stay in their homes and encourage Treasury to study the option of buying individual mortgages like we did successfully in the 1930s," he said.

Meanwhile on Fox News, conservative pundit Bill Kristol wasn't too impressed with McCain's jumping on the mortgage buying bandwagon.

"We will hear much more about this $300 billion mortgage plan of the next day or two," Kristol said. "It might end up hurting McCain. It is a pretty chaotic campaign. If you were going to do this, you [would need] lay the groundwork for it."

Comments

[Tulka2]

McCain came off as a mean old man. Don't you think? Is he in charge of his campaign or is he a puppet? McCain's campaign, one assumes with McCain's permission, spent the last four days manufacturing scary bogey-man stuff about Obaba. When McCain is standing in front of Obama, he cannot bring himself to say any of it. That was a cowardly, hypocritical show.

[comeonnov5]

Angry John never read the first proposal, i doubt he read the final one...

[StandUpAmerica08]

That's what happens when you don't read critical paperwork requiring your signature. McCain didn't read the bailout plan nor has he read the newspaper.

[DeeDeeDaGumby]

Well maybe he skimmed it, looking for Obama Ayers connections like his lil fluffy bunny SAYS she does all the time. What she doesn't tell you is she never takes in everything she reads, just what suits her lies.

[jozap]

Buying mortgages and reworking the terms, interest and or payments is in the bail out bill.

Already done.

[AMERIKA]

to really understand this issue you need to listen to This American Life from Saturday which can be found at this life.org....the very best discussion of the crisis that I have found

[YouDisgustMe]

mcblunder doesn't have any original thoughts

[bluekatz]

Too old to have anything original.

[DBoyRodriguez]

What's the big fuzz all about? It is not Obama's idea either, it's from the 1930's!

[corocki]

McCain was talking about this plan back in April, because he understands that the failing housing market is at the root of our current financial debacle.

[hilary916]

McCain's going against his own positions. What a maverick.

[pookielicious]

The four things people will hopefully remember from the debate:
1). McCain used a very wrong/potentially condescending 5th tense to describe someone standing next to him.
2). McCain had to write down three things to discuss his answer, after obama had already jumped up from his chair ready to answer on the fly, McCain took 5-10 seconds to write 3 things down and formulate a response.
3). A projector for a planetarium is NOT something that you make fun of.
4). No-one, I mean no-one has commented on the fact that Obama said "A safe place to store nuclear waste". McCain even made the mistake of bringing the phrase back up and smirking about it. Bad choice. Obama was speaking code for NO Yucca Mountain. McCain was too ignorant to realize this. This comment wins a Ton of votes within a 100-200 mile radius of Yucca, a.k.a. 80% of the population of Nevada. The map shrinks with one sentence. Obama never ceases to amaze me how brilliant/cunning he is, the last I saw this was um..... ah yes '92.

[PHM]

Re: #1...not just someone standing next to him...a Senate collegue. There are standards of civility that have existed since the conception of this country and that august body. For McCain to refer to Obama as anything other than Barack, Senator or Senator Obama is beyond disgusting.

As for the rest...right on!

[bluekatz]

He can't help it that is just his character. But I will give Obama 10000 points for remaining professional and sticking to his points. The best thing one can do with an idiot as such is to ignore and keep hitting the key points. There are many,many people who caught what he said and I guarantee the points will dive in the morning. McCain, Man of Honor, right? not by a long shot, he is a coward.

[saron123]

Did McCain even read the Bail-out ..400 something pages?

Remember, he said he did NOT read the 3-pages bail-out that Bush proposed when he was asked 3 days or more after its proposal.

So, if it takes McCain to read one page per day, then it would take him about 400 something days to read the new version of the bailout plan.

In short, he has not gotten to the 'homeowners mortgage' part yet in his reading.

[quoveritas]

"that one"

classic

McCain just buried himself, along with his barracuda and all the bigots that they've been pandering to lately.
It was unbelievable to watch, and let it register that this old white man made an obvious attempt to objectify a african american man on national/international television. Good grief, this man's lost it.

[cbates]

Well Barack was flattered when McMock used his Change slogan and suggested that McMock should begin to use or at least begin to pick up on his ideas. Remember? Well McMock took him up on it. Smile

[Thundrdrum]

McCain brought up Fannie/Freddie Mae when his campaign mgr.'s lobbying firm was still receiving $15K per month LAST month. Has he no shame? Get rid of lobbyists? A lie. Suspend his campaign to "fix" the crisis? A lie. He tried to forward the bail-out with NO oversight whatsoever. Now he's going to buy up all America's bad mortgages? Does he really think those listening to him are that stupid? And, are they?

[demfriend]

I wasn't born yet but I do understand tat one of the tactics used during the "Great Depression" was to do just that and to help stabilize by the buy up. That was then this is now. The mortgage debt bad loans are a world wide problem because guess what, we sold the debt to everyone who would buy it. Of course the bubble bottom wasn't there yet. Now for the paln to work it would have to be isolated to a very few and those only who are able to pay the mortgage. But I cannot see how adding 300 million to 700 million will save anyone.

[rowzeer]

Your exactly right....it was the repeal of the Glass Stegal act put in place after the stock market crash of 1929...it kept commercial/lending banks and investment banks separate....Phil Gramm with help from deregulator John McCain repealed it and passed the banking modernization act that created "dark markets" outside of SEC view ( why do you think the oil speculator were able to scr*w us. )

Commercial banks would own the loans they made so they made darn sure the person could make the strokes....but after the repeal they were allowed to sell the loans as investment....so they made money either way....so it didn't matter if the person could pay or not.

All the commercial banks, mortgage banks, investment firms, etc. all stumbled over each to make money hand over fist on these loans. The CEOs knew what they were doing...that's why they should all go to jail The SEC should step in and protect the public and shareholders against these thugs.