Posted on 10/07/2008 9:04:34 PM PDT by jddqr
I can’t underscore enough what a rotten idea John McCain’s ACORN-like government mortgage buy-up is. I said it during my liveblog. And I’ll say it again: “HE WANTS TO EXPAND THE BAILOUT. He wants to do what ACORN wants to do. We’re Screwed ‘08.”
This was his supposed “game-changer.” This was the very first thing out of his mouth during the debate tonight — his big pitch right off the bat. The McCain campaign immediately sent out this fact sheet on the proposal, which will cost at least $300 billion. The proposal involves directing the Treasury Secretary to “purchase mortgages directly from homeowners and mortgage servicers.” That’s on top of the trillion-dollar crap sandwich, the $85 billion to AIG, the $25 billion to automakers, the $200 billion in capital and credit lines to Fannie and Freddie, and who knows what else we’ll be forking over to California, Massachusetts, etc., etc., etc.
He spent the entire debate assailing massive government spending — while his featured proposal of the night was to heap on more massive government spending to pursue home ownership/retention at all costs. If Obama had proposed this, the Right would be screaming bloody murder about this socialist grab.
(Excerpt) Read more at michellemalkin.com ...
It is bad policy, though no worse and perhaps morally more defensible than the $700 billion bailout—I mean “rescue” of Wall Street.
It might be good politics though, and, though I hate to admit it, right now I can handle a little foolish, populist rhetoric if it keeps Barack Hussein Obama out of the White House.
That said, keeping home prices artificially inflated is of no benefit in the long term. Prices should adjust to a level where incomes can support the prices.
The median home, in a particular region, should be priced at a level affordable on the median income (excluding renters). A 25th percentile home should be priced where a family at the 25th percentile in income can afford it, a 75th percentile home should be affordable to someone making a 75th perecentile income, etc., etc.
And when I say affordable, I mean with at LEAST a 10% (20% would be better)down payment, and fixed rate mortgage for no more than 3 times annual income (2 1/2 would be better).
Until home prices come in line with income, we will still be in the midst of a bubble that will inevitably burst.
I’d like to see reform in home appraisal methodology to reflect this. Appraisals should no longer be based upon whatever the (often grosly inflated) market value of similar homes in the area are.
Instead a formula should be developed where the median home VALUE (based upon the income of the region) is determined and then homes are appraised based upon their relative desirability (size, location, etc.) as compared to the median home. This would help prevent future real estate bubbles.
It is freaking amazing how many STUPID FReepers are out there. A bunch of socialists. If they took such an anti-conservative position on abortion or the right to have a gun or gay agenda they would be zotted.
Baloney. McCain did well tonight and came out ahead especially on the economy, his biggest weakness.
My dear friend if it was impossible to determie home vaues no one could buy or sell and no one would realize their house value has dropped below the mortgage amount, market appraisals are perfectly commonplace.
McCain’s idea is supported by CONSERVATIVE economists. It is part of the bailout package now, but McCain first recommended it months ago.
It is no different than buying up the mortgages or mortgage securities in big blocks, excpt it directly aids the homeowner while also taking the bad mortgage off a lender’s books.
You didn't have me from 'hello'.
She doesn’t need to worry about this happening.
With all these bailouts, inflation rate will go up so much, that home prices have no choice but to rise along with it (sigh)
I think that option is in the bailout so it would be using money already allotted. It was buried in the bill somewhere in language that most of us wouldn’t understand. I think I found it when I first heard mention of it.
“If you can’t make your payments, and you’re in danger of foreclosure, you will be able to go to any Post Office and pick up a form for a new HOME loan.”
Idiotic.
LOL - Congratulations!!!
Ya know...after the first 100 Billion the other billions seem like pennies. What’s a few hundred billion between candidates, ‘eh?!
Yeah, sure. This “moderate” strategy has been doing wonders for his polls the last few weeks, hasn’t it?
McCain’s bounces ONLY have come when he appoints a conservative (palin) to run with him or he says something conservative (such as at Warren’s debate). None of this moderate shtick has helped him one bit and it’s not going to start now.
Then again some of us already went down this road with Bush, so excuse our resistence to travel that road to nowhere again. We heard the same arguments now being made for McCain and all we got in the end was screwed. And I was one of those Bush supporters at the time.
I’m not doing it again. Certainly not for McCain. I’m not going to tell someone not to vote for McCain, but when he goes down this road I’m not providing cover for him either.
“It doesn’t matter where the 300 billion comes from. The true vulgarity is that it is being done at all.”
I agree. The number of socialist and economic ignoramuses around here is appalling.
Isn’t it great what affirmative action and political correctness buys you? In your case, you saw an opportunity to capitalize on the stupidity of others. I salute you!
That's a death wish for McCain, and he would know that. I'm no McCain supporter. I wasn't even going to get involved in this election until Palin showed up.
Because I do know McCains quest is to stop throwing tax payer money around, I really don't, or can't, believe the $300 BILLION is additional. It goes against everything he stands for.
McCain has a problem expressing himself - a lot. Until I hear otherwise, the money is the already allocated $700 billion the dems stuck us with. I'm not going to knee jerk this one and condemn what could be an excellent proposal.
“The number of socialist and economic ignoramuses around here is appalling.”
Worse than that, they wrap themselves in a giant GOP flag and claim that WE’RE not patriots.
Scum.
From John McCain’s web site. Notice the part where the B A N K writes down the loss and reissues a loan to a qhalified folks a FHA backed loan.
John McCain has proposed a new “HOME Plan” to provide robust, timely and targeted help to those hurt by the housing crisis. Under his HOME Plan, every deserving American family or homeowner will be afforded the opportunity to trade a burdensome mortgage for a manageable loan that reflects their home’s market value.
Eligibility: Holders of a sub-prime mortgage taken after 2005 who live in their home (primary residence only); can prove creditworthiness at the time of the original loan; are either delinquent, in arrears on payments, facing a reset or otherwise demonstrate that they will be unable to continue to meet their mortgage obligations; and can meet the terms of a new 30 year fixed-rate mortgage on the existing home.
John McCain’s HOME Plan Will Keep 200,000 To 400,000 Families From Losing Their Homes. “But at the same time, McCain is calling for aggressive federal action to help keep 200,000 to 400,000 families from losing their homes. That plan has many of the elements of a proposal by Rep. Barney Frank, D-Mass., and Sen. Chris Dodd, D-Conn., requiring participating lenders to forgive part of the loan principal and then write a new loan that would be backed by the federal government through the Federal Housing Administration.” (Tom Raum, “Everyone’s Invited: McCain Economic Plan Draws From Both Parties,” Tucson Citizen, 4/17/08)
How It Works: Individuals pick up a form at any Post Office or download the form over the Internet and apply for a HOME loan. The FHA HOME Office certifies that the individual is qualified, and contacts the individual’s mortgage servicer. The mortgage servicer writes down and retires the existing loan, which is replaced by an FHA guaranteed HOME loan from a lender.
Talk about "mission creep" and "rationalizing".
Unbelievable.
Just the other day I found an archived Mark Levin February rant on McCain. It was unbelievable. How things change in 9 months. Weird. Absolutely weird.
Conned is the wrong word, they are either stupid, illiterate, or both.
They should have looked for outside advice if either of the above applies.
Throw them out in the street and not one cent of my money to give them a piece of property to squat on.
PFTTTT!!
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