The Politics and Policy of McCain's New Mortgage Proposal

re: The Politics and Policy of McCain's New Mortgage Proposal

not.Brit — Wed, 08 Oct 2008 22:18:45 GMT

Except that the right wing has lost their minds over this issue. It doesn't do him any good to run as a moderate populist if it angers his base. If Sarah Palin comes out in favor of her own running mate's proposal, it will end the campaign.

This time it looked less like a Hail Mary and more like a bad onside kick. When Obama came out against the proposal before anyone could even see it, it was pretty clear that he'd seen it coming, fell on the ball, and now has possession with little time left on the clock.

Man, I love sports analogies.

re: The Politics and Policy of McCain's New Mortgage Proposal

cani77 — Wed, 08 Oct 2008 22:39:36 GMT

In a few weeks we will make a choice that will decide our future.

I follow an economist named Bob Proctor. He has called the top and bottom of every market crash since the 70s correctly.

Also, he perfectly predicted the current real estate market meltdown and the picture he paints about what will happen in the next couple years

is terrifying.He thinks it will be worse then the great depression.

The banks in the U.S. are going under one after the other. Countrywide the largest morgage bank in the world,Bear Stearns, Lehman Brothers and Merrill Lynch which are 3 out of the top 5 wall street firms. Also, Fanny and Freddy Mae which hold 50 percent of the home loans in the United States.

The government took them over because they are essentially bankrupt.If they didn't the entire financially system would virtually shut down, the stock market would crash and we would suffer beyond what any of us have seen before.

McCain just like Bush " doesn't understand the economy".

That not just my opinion its his own words. Not only does he not understand how to fix it but he does not understand exactly what is broken.

It is no surprise that he doesn't. The people that make up these securities use complex mathematical models very few people understand.

Bush and McCain both can take the credit for this mess since they helped deregulate the laws that were protecting us.

Bush's economic advisor Phil Graham wrote the deregulation bill that allowed banks to take huge risks with all of our future.

Now, Phil Graham is the head of McCain's economic policy.He is also McCain's choice for the next secretary of the treasury.

No one in this country can afford for that to happen. The last time Bush met with his economic advisors was in March. He either didn't care or didn't realize that anything was wrong. Phil Graham had the guts to say that we are in a mental recession after he helped create the worst economy meltdown in our lifetime.

It will take the best and brightest minds in the world to get us out of this nightmare. As bad as Bush has done, McCain would be

even more destructive because things are in much worse shape. The next president will not inherit a surplus like Bush did but a tanking economy and a 11,600,000,000,000 (trillion) dollars deficit. Most of it Bush created and it will take decades to pay it back.

If you do what you have always done then you will get what you have always got.

When it comes to policy Bush and McCain are the same 90 percent of the time.

So why are the polls even close then ?

Mccains team just said they no longer want to talk about the economy.Instead they would like to spend time

running the biggest smear campaign in history.

They think they can just tell you lies and you wont be smart enough to see through it

Let's teach him we are smarter than that .

Elect Obama Biden 2008

Check out this video of sarah palins interview it will blow you away

http://www.youtube.com/watch?v=r36Xc0GG4iQ

re: The Politics and Policy of McCain's New Mortgage Proposal

olderwiser — Wed, 08 Oct 2008 22:51:42 GMT

The old man really didn't know what he was saying in the debate. Now he is stuck with it. He thought that he was saying what the bailout would do. Doesn't understand the economy. Whew!

re: The Politics and Policy of McCain's New Mortgage Proposal

pinpoint — Wed, 08 Oct 2008 23:03:42 GMT

Another Hail Mary. First the "Palin disaster", then "suspending the campaign", now this. Can you imagine the "governing by surprise" McCain admininisration?

So desperate, so sad.

re: The Politics and Policy of McCain's New Mortgage Proposal

benluclar — Wed, 08 Oct 2008 23:04:04 GMT

re: The Politics and Policy of McCain's New Mortgage Proposal

mrzoid — Wed, 08 Oct 2008 23:11:35 GMT

This is insane! First our government engages in market socialism, now McCain is encouraging total socialism. What the hell is going on? Did i miss a meeting, and all of the sudden we decided that the way to stabalize the economy was to sink another trillion dollars into pseudo-communism? McCain? Wasn't he proposing spending cuts? Responsible economic policy? Smaller government? This proposal is the essence of large and expanding government! This is either a stunt or a whoring out of the values he may have once had.

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Wed, 08 Oct 2008 23:13:49 GMT

Even Bill Clinton points to Congressional Democrats protection of and failure to deal with Fannie and Freddie as a primary cause.

http://www.youtube.com/watch?v=XsynspIqAoE

The link below contains a purported list of the top 25 in Congress who got contributions from the folks at Fannie and Freddie. Obama is listed third, after Dodd and Kerry, even though Obama is just a junior Senator. Obama is followed next by Clinton. Barney Frank and Nancy Pelosi are on the list as well.

http://www.investors.com/editorial/IBDArticles.asp?artsec=16&artnum=1&issue=20080918

Then there is the Senate Banking Committee Chairman Christopher J. Dodd who allegedly got special mortgage deals from Countrywide, who gave preferential rates to 'friends' of company's chairman.

http://www.msnbc.msn.com/id/25140560/

For an interesting article purporting to detail the House Financial Services Committee Chairs long history with Fannie Mae, See http://www.businessandmedia.org/printer/2008/20080924145932.aspx

"House Financial Services Committee Chair promoted GSEs while former 'spouse' was Fannie Mae executive."

The link below describes how some in Congress tried to use the original version of the bailout bill to divert money eventually recovered to groups like ACORN, a group Obama has a long association with. See:

http://online.wsj.com/article/SB122247015469280723.html?mod=googlenews_wsj

And then there is House Speaker Nancy Pelosi, who allegedly has directed nearly $100,000 from her political action committee to her husband's real estate and investment firm.

http://www.washtimes.com/news/2008/oct/01/pelosis-pac-pays-bills-for-spouses-firm.

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Wed, 08 Oct 2008 23:14:07 GMT

Obama is getting a bump out of this because people are not being reminded of the whole history where the economy is concerned, and who did what when. Call it bias by omission. The media simply says that the economy is Obama's strong issue, but never discusses the facts in detail. Further, who had a majority when is rarely relevant. If the simplistic Party In Power model were true, then the Democrats would not have needed the House Republicans when they tried to pass the bailout bill, as Democrats have the majority in both houses and there is no threat of a veto. In theory, they do not need the Republicans to vote at all. In fact, something like twelve (12) Democrats from Barney Franks own banking committee voted against the bill. Obviously, it is not so simple and the media does the voter a disservice by doing little more than reinforcing the error. A similar argument would be to say that the economy appeared to be doing fine until the Democrats took over control of Congress and the power of the purse in 2006, then it tanked. As an aside, the media also misleads regarding the Clinton economy when they fail to mention that it also ended in a recession, requiring the first round of Bush stimulus checks immediately after he took office..

Do Obama and the Democrats deserve a lift in the polls as a result of the financial and mortgage problems? The answer from history is a clear NO. Here's the lead of a New York Times story on September 30, 1999:

"Fannie Mae Eases Credit To Aid Mortgage Lending" [link below]. That's 1999 folks. Clinton Administration, I believe.

Here's the lead of a New York Times story on Sept. 11, 2003:

"The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago. "[see link below] The Democrats killed the reforms.

McCain said in co-sponsoring the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190:

"If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole. The Democrats killed the Bill.

What was Barney Frank and fellow Democrats saying at the time of these attempted reforms? According to reports, Representative Barney Frank(D-MA) claimed of the thrifts :

"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis, the more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

Representative Mel Watt (D-NC) added of the reforms "I don't see much other than a shell game going on here, moving something from one agency to another and in the process weakening the bargaining power of poorer families and their ability to get affordable housing." [ See Community Reinvestment Act, link below w/ history]

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Wed, 08 Oct 2008 23:16:18 GMT

2000: Secretary Summers sent Undersecretary Gary Gensler to Congress seeking an end to the "special status". Democrats raised a ruckus as did Fannie and Freddie, headed by politically connected CEO's who knew how to reward and punish. "We think that the statements evidence a contempt for the nation's housing and mortgage markets" Freddie spokesperson Sharon McHale said. It was the last chance during the Clinton era for reform.

2001: Republicans try repeatedly to bring fiscal sanity to Fannie and Freddie but Democrats blocked any attempt at reform; especially Rep. Barney Frank and Sen.Chris Dodd who now run key banking committees and were huge beneficiaries of campaign contributions from the mortgage giants.

2003: Bush proposes what the NY Times called "the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago". Even after discovering a scheme by Fannie and Freddie to overstate earnings by $10.6 billion to boost their bonuses, the Democrats killed reform.

2005: Then Fed chairman Alan Greenspan warns Congress: "We are placing the total financial system at substantial risk". Sen. McCain, with two others, sponsored a Fannie/Freddie reform bill and said, "If congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system and the economy as a whole". Sen. Harry Reid accused the GOP ;of trying to "cripple the ability of Fannie and Freddie to carry out their mission of expanding homeownership" The bill went nowhere.

2007: By now Fannie and Freddie own or guarantee over HALF of the $12 trillion US mortgage market. The mortgage giants, whose executive suites were top-heavy with former Democratic officials, had been working with Wall St. to repackage the bad loans and sell them to investors. As the housing market fell in '07, subprime mortgage portfolios suffered major losses. The crisis was on, though it was 15 years in the making.

2008: McCain has repeatedly called for reforming the behemoths, Bush urged reform 17 times. Still the media have repeated Democrats' talking points about this being a "Republican" disaster. A few Republicans are complicit but Fannie and Freddie were created by Democrats, regulated by Democrats, largely run by Democrats and protected by Democrats. That's why taxpayers are now being asked for $700 billion!!

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Posted elsewhere by: BryanW (October 7, 2008 at 5:14 PM)

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Wed, 08 Oct 2008 23:16:54 GMT

1995: Congress, about to change from a Democrat majority to Republican, Clinton orders Robert Rubin's Treasury Dept to rewrite the rules. Robt. Rubin's Treasury reworked rules, forcing banks to satisfy quotas for sub-prime and minority loans to get a satisfactory CRA rating. The rating was key to expansion or mergers for banks. Loans began to be made on the basis of race and little else.

1997 - 1999: Clinton, bypassing Republicans, enlisted Andrew Cuomo, then Secretary of Housing and Urban Developement, allowing Freddie and Fannie to get into the sub-prime market in a BIG way. Led by Rep. Barney Frank and Sen. Chris Dodd, congress doubled down on the risk by easing capital limits and allowing them to hold just 2.5% of capital to back their investments vs. 10% for banks. Since they could borrow at lower rates than banks their enterprises boomed.

With incentives in place, banks poured billions in loans into poor communities, often "no doc", "no income", requiring no money down and no verification of income. Worse still was the cronyism: Fannie and Freddie became home to out-of work-politicians, mostly Clinton Democrats. 384 politicians got big campaign donations from Fannie and Freddie. Over $200 million had been spent on lobbying and political activities. During the 1990's Fannie and Freddie enjoyed a subsidy of as musch as $182 Billion, most of it going to principals and shareholders, not poor borrowers as claimed.

Did it work? Minorities made up 49% of the 12.5 million new homeowners but many of those loans have gone bad and the minority homeownership rates are shrinking fast.

1999: New Treasury Secretary, Lawrence Summers, became alarmed at Fannie and Freddie's excesses. Congress held hearings the ensuing year but nothing was done because Fannie and Freddie had donated millions to key congressmen and radical groups, ensuring no meaningful changes would take place. "We manage our political risk with the same intensity that we manage our credit and interest rate risks," Fannie CEO Franklin Raines, a former Clinton official and current Barack Obama advisor, bragged to investors in 1999.

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Wed, 08 Oct 2008 23:17:16 GMT

1977: Pres. Jimmy Carter signs the Community Reinvestment Act into Law. The law pressured financial institutions to extend home loans to those who would otherwise not qualify. The Premise: Home ownership would improve poor and crime-ridden communities and neighborhoods in terms of crime, investment, jobs, etc.

Results: Statistics bear out that it did not help.

How did the government get so deeply involved in the housing market? Answer: Bill Clinton wanted it that way.

1992: Republican representative Jim Leach (IO) warned of the danger that Fannie and Freddie were changing from being agencies of the public at large to money machines for the principals and the stockholding few.

1993: Clinton extensively rewrote Fannie Mae and Freddie Mac's rules turning the quasi-private mortgage-funding firms into semi-nationalized monopoies dispensing cash and loans to large Democratic voting blocks and handing favors, jobs and contributions to political allies. This potent mix led inevitably to corruption and now the collapse of Freddie and Fannie.

1994: Despite warnings, Clinton unveiled his National Home-Ownership Strategy which broadened the CRA in ways congress never intended.

re: The Politics and Policy of McCain's New Mortgage Proposal

Omaar — Wed, 08 Oct 2008 23:22:09 GMT

http://www.youtube.com/watch?v=JYFm5kK4f1k

Today Old Senile McCain is called his Audience "My Fellow Prisoners" opposed to "My Citizens" or his ole faithful "My Friends"

It seems after the YouTube World and Mass Media has criticized his Robotic, Predictable and down right boring "My Friends"

McCain tried to switch it up and Blurted out "My Fellow Prisoners"

This Mother Lover is Too Damn Old and Sarah Palin is Too Damn Dumb...Simple an Plain.

"My Fellow Prisoners"

McCain is a Joke ...A Easy Win for Obama and Biden

Obama is already at [464] Electoral Votes, all he needs is [470] an all you McCain Low Lifes, can finally call it a Year and Go Home.

re: The Politics and Policy of McCain's New Mortgage Proposal

Omaar — Wed, 08 Oct 2008 23:36:20 GMT

http://www.youtube.com/watch?v=JYFm5kK4f1k

Today Old Senile McCain is called his Audience "My Fellow Prisoners" opposed to "My Citizens" or his ole faithful "My Friends"

It seems after the YouTube World and Mass Media has criticized his Robotic, Predictable and down right boring "My Friends"

McCain tried to switch it up and Blurted out "My Fellow Prisoners"

This Mother Lover is Too Damn Old and Sarah Palin is Too Damn Dumb...Simple an Plain.

"My Fellow Prisoners"

http://therealmccain.com/butler/

McCain is a Joke ...A Easy Win for Obama and Biden

Obama is already at [464] Electoral Votes, all Obama needs is to hit [470] an all you McCain Low Lifes, can finally call it a Year and Go Home.

re: The Politics and Policy of McCain's New Mortgage Proposal

caraprado — Thu, 09 Oct 2008 00:03:54 GMT

From:

Head of State

http://headofstate.blogspot.com/2008/10/fear-and-loathing-in-town-hall.html

Tuesday, October 07, 2008

Fear and Loathing in the Town Hall: A Predictive Fantasy

(The camera looks at the hall from above, into the hall, from the POV of the stage. Red meat has been hung from the walls and rafters, along with dollar bills which, upon closer inspection, are prop money.

The crowd is seated. They are strangely quiet. Their manner is that between those who are waiting for their instructions, post-op surgical recoverees, and post-war survivors. They are slightly slumped, in the same posture.

The candidates enter from opposite sides of the rear of the stage and walk to their podiums. The crowd rises as one and cheers with a loud, aggressive fervor reflective of their desperation.

Obama is standing tall in stride, looking a bit overcome by the experience, although genuine. McCain is smiling--his cheerful public grimace, although there is some genuine pleasure. His eyes have the slightest glaze of a gradually oncoming fog.)

MODERATOR: Tonight is a different format--one where you, the public, can ask your questions directly to the candidates. None of the questions have been screened in advance, and the candidates have been given no advance notice of what the questions, or who the questioners, might be. And with that, we begin. Our first question:

CITIZEN 1: My name is Jan, I'm from Murfreesboro? I've been watching the news, and I'm scared. I can't say that I've listened much about the stock market before? But I know that it's going down, and that's bad. I don't know what's going to happen to my job, or my house, or my kids. My question is for Mr. McCain? What will you do to help us understand what is going on, and to make it clear just what you will do about it?

(Crowd applauds vigorously as Jan sits down with a bit of embarrassment).

MCCAIN: (Holding the top of the rostrum with both hands and smiling): Well, first, I want to welcome each of you here tonight. You know, I know what each of you are feeling. I think that each of you must be scared--as I am, of not verifying myself in my father's and my grandfather's eyes. But, that's not so important today--or, at least saying it isn't. What is most important is to appear that I understand an economy that just months ago I said that I had little understanding of at all. I want to win. I need it, frankly, as a way of overcoming my own personal horrors and demons, of overcoming the anger that was bestowed and thrust, unwillingly, upon me. And that's why I'm still willing, even as the sharpest edges of mental function fade, to propel myself through this mass of insult. I understand how to respond to insult. With anger. And impulse. And that's what I'll bring to the White House, come January of 2009.

(Crowd applauds vigorously)

MODERATOR: The next question is for Senator Obama.

CITIZEN 2: Thanks. My name is Ross, from Shreveport. First-time caller, long-time listener. My question is: Senator Obama, it's not an error that you were given the middle name "Barack". We know that that is the same name of the murderous. Communist leader of Iran--and that's no accident. (A slight murmur from the crowd. The moderator looks vaguely stunned, but does not interrupt). Now, when you were going to Russia, with Bill Ayers, and dodging the draft--just like William Jefferson Clinton--(speaking more quickly now, more aggressively, turning to the crowd)--why weren't you here at home, saving our banks from the Liberals and the Socialists who want to take our money away from us and just give it to the terrorists?

SARAH PALIN: (Poking her head out from the wings, with a big smile): You betcha'!

(She withdraws).

OBAMA: Well. First of all, I also want to welcome you all here tonight. You know, I know that this is a difficult time. Many of you are worried about your jobs, your families, your homes. There are times that test a man's soul, and every woman's as well. And I know that this may be one of those times. I can understand why you would be frightened, even angry at what this nation has done. But we are a nation that has risen up in adversity even in the best of times, we found our strength, and honor, and courage, our ability to work as one, when faced with the most difficult situations. And I want to call on each of you, in that spirit of patriotic sacrifice, to join with me in that effort in the days ahead.

(Silence. Then applause, as the recognition of actual thought begins to spread through the crowd. It swells, and finally, subsides).

MODERATOR: The next question is for Senator McCain.

CITIZEN 3 (He is a man who appears to be in his early 40's wearing blue jeans that are stiff and obviously brand-new. They are perfectly creased. He is wearing a tight fitting, also obviously new T-Shirt that says "Average American...And Black With Rage!" beneath which is an American flag. He is wearing black wing-tip shoes. ). Senator McCain, I'm just an average American, just an average Joe, just your Average Joe-Sixpack (Blackberry begins ringing)...Oh...

excuse me...just...a...sec...my boss's phone...(whispering tensely into phone:) "No...I said sell. Sell. Yes, the entire portfolio. No, not Ghanan timber, for god's sake, gold, the lot of it. Jesus H....(tucks Blackberry back into pants pocket and then readjusts his stance to that of average Joe, slumping to one side again and changing his voice back to it's original tenor). Like I said, just an average Joe Sixpack. And I'm wonderin'. I heard what Mr. Hussein just said about "rising up", and I'm wonderin' if that's exactly what he wants to do! Oh, sure, he wants us to band together to rise up--where have we heard that before? Socialists! That's what they do! (crowd begins to murmur, and in the rising heat, the smell of the fresh meat begins to waft faintly through the hall). Rise up! That's what he wants to do! Well, we need to rise up! Against those kind of Socialist, Communist, Fascist, Atheist, Marxist policies! (the crowd is talking, some nodding their heads). And so what I want to ask you, Sen. McCain (crowd quiets), as an average everyday American, is this: What is it like, being a fighter pilot and all, when you know that Barack Hussein was out there, palling around with his Communist friends?

MCCAIN: Well, my friend--and by that, I mean that all of you are my friends--I'm glad you asked. Not everyone has had the luxury of gaining an education merely on the basis of their own talent, or the opportunity to travel the world learning how to be separate from important family members without their having significant pull, or to be able to experience the variety of foods that one has the chance to consume when they are paid for by the State. And, I can say that, in that way, I haven't been quiet as lucky. But I will say this--I will not look such fortune in the face and say: 'Fine, I'll work on education with the Bill Ayers of this world', "I'll be at the top of my class at Harvard", when I can be down, down there with you at the bottom! I know what it's like to be at the bottom when I've had all the opportunities--and I want to share that experience with those of you who have had none. You're angry. I'm angry. We have that in common. Let's be angry together, satisfied that, for another for four years, we've put those who have the arrogance to think for extended periods in their place, content in knowing that we're right--even if we're wrong.

CITIZEN 4: Hiya. My name is George, from Midland, altho' some would say Kennebunkport, heh, heh. I have a question for ya, John, and it's this. Listen: I'm goin' to be out of a job soon. Oil futures aren't lookin' that good, and I've got to tell ya', I didn't have too much luck there in the first place. So I'd like to ask ya, one flyin' man to another--what do you think I oughta do?

PALIN: (emerges from wings with purposeful strides to McCain's podium): I've got to take this one, John. Mr. Bush, if you can't figure out what you want to do after you leave and we move in, take a little time off, and then you come right up to Alaska. They love hunting just like you--and you can fly, you can learn to do it from a plane! The pipeline's big enough for any number of mistakes. So you come up here when you're finished--we've got plenty of bars with plenty of bowls of nuts and plenty of televisions right on Wasiila Main street--we'll take care of you right!

(Bush smiles and sits, crowd applauds, Palin, smiling and waving, exits).

CITIZEN 5: Well, look. This is a serious question. I'm John, from Carpenter. It's for both of you. I've got two kids, 4 and 6, a boy and a girl--so sweet. You know. My wife, she was working for the WaMu branch, center of town. It's closing next week. She's been looking in the ads, the newspapers, online--nothing. It's all she can do to keep a smile on her face for the kids. Myself, I built a commerical trucking business from the ground up. Sixteen years. Sweat everyday, grease on my hands, I can never get it out. We were never rich, but I made a good living. I didn't know about investing--who does, you're not born with it! Anyway, I went to an investment advisor, it seemed like the safe thing to do, protect the kids, plan for the future, not use my own dumb head (smiles). Well, he was so smart, and he was so sure, and he had it all planned out. And it looked so impressive on paper. Now--all of a sudden--it's gone. Everything is changing. It's changing so quickly. It seems like nobody--nobody knew. Not even the people who were supposed to! Everybody was talkin', makin noise, thinkin' of one thing: Themselves, themselves, themselves. Never worrying to think about someone else, about the future, about the next moment.

Well, now the next moment is here. And I wanna know--what are the two of you really going to do about it?

(The room is quiet as his last word echoes in the hall. The raw meat is rocking, slowly in the air, and the paper bills are gently fluttering). You can see Palin in profile, standing in the wings, holding her chin in her hand. The two candidates stare straight ahead, holding the podium. They are silent).

Cite:

Head of State

http://headofstate.blogspot.com/2008/10/fear-and-loathing-in-town-hall.html

re: The Politics and Policy of McCain's New Mortgage Proposal

Nowforthetruth — Thu, 09 Oct 2008 02:43:22 GMT

If this election cycle has demonstrated anything, it is that in order to preserve democracy in this country, it is passed time we reconsidered the additional protections provided the media by the Supreme Court in New York Times v. Sullivan, 376 U.S. 254 (1964), which protects the media from most slander and libel suits. While perhaps noble at the time in its conception, the media has abundantly demonstrated that for the advancement of their own political agenda, on both sides, and to fill the demands of the 24/7 news cycle, they are willing to abandon any pretense of objectivity or, more importantly, of journalistic ethics. Since they cannot exercise the power they have been given responsibly on their own, perhaps it is necessary to return the threat of legal sanction under which they operated prior to 1954.

http://en.wikipedia.org/wiki/New_York_Times_Co._v._Sullivan

re: The Politics and Policy of McCain's New Mortgage Proposal

TomTraubert — Thu, 09 Oct 2008 03:00:43 GMT

So, McCain proposes that the taxpayers buy up all these mortgages at full face value and saddle us taxpayers with the difference between the true value of the house and the mortgage. Housing prices have been pegged at anywhere from 20 to 50%, even 100% overvalued in some markets during the height of the bubble.

For example, Joe Homeowner buys a $125,000 house for $500,000 with a piggyback loan, meaning the second on top of the first, on an interest-only loan with negative amortization such that the outstanding principal is up to $600,000. So John McCain proposes that us taxpayers buy up that $600,000 mortgage at face value, renegotiate with Joe such that he can make the payments for a few more years. He decides to sell and the house goes for $150,000 and we taxpayers have lost $475,000 on the deal.

That's a stupid idea, Romano. What do you mean it would be "better than nothing"? I guess you didn't major in mathematics.

And I take great umbrage at your suggestion that LBJ would ever be party to such a ridiculous stunt. Where's your evidence for that?

re: The Politics and Policy of McCain's New Mortgage Proposal

CliffyWorld — Thu, 09 Oct 2008 03:50:10 GMT

Please read related article titled: "It's Not Always The Pork. The Cows All Have To Be Fed Too." at http://www.cliffyworld.com/blogs

re: The Politics and Policy of McCain's New Mortgage Proposal

jw360 — Thu, 09 Oct 2008 04:12:59 GMT

Listen to this video.

http://shortsaleblogger.com/anyone-listening-to-peter-shiff-now-short-sale-solutions/

This makes sense. Mass principle write downs are the only real solution. The banks are going to have to take the hit. So let them go bankrupt after writing down all the principles. They're all going bankrupt anyway. The government will bail them out. Right? They already are. Problem solved. They sold these homes for more than they were worth. There needs to be a class action lawsuit against these banks and lenders and force them to write off the principles of all these mortgages. It's that simple. Then if they want to, let them sue all the appraisers or builders that told them these homes were worth more than they really were. I mean if someone tells you your buying a $200,000 gold & diamond ring, and it turns out to be a cubic zirconia and gold ring worth $100,000, isn't that fraud? Wouldn't you sue that person, and have them sent to prison?

re: The Politics and Policy of McCain's New Mortgage Proposal

jiml1956 — Thu, 09 Oct 2008 04:19:06 GMT

McCain makes no sense. What does the value of a home have to do with making the mortgage payment? If people can make their house payment they will stay in their home.

He wants to artificially inflate housing prices?

re: The Politics and Policy of McCain's New Mortgage Proposal

jiml1956 — Thu, 09 Oct 2008 04:21:11 GMT

nofofrthetruth,

You cite wikipedia for facts? Buy a vowel.

re: The Politics and Policy of McCain's New Mortgage Proposal

darkplayer — Thu, 09 Oct 2008 04:41:27 GMT

WoW!!! McCain is not doing too well. "My fellow prisoners"? What the heck was that? SNL is going to have a field day with this one.

Obama/Biden 264

221 Solid

43 Leaning

McCain/Palin 163

143 Solid

20 Leaning

Toss Up 111

re: The Politics and Policy of McCain's New Mortgage Proposal

jw360 — Thu, 09 Oct 2008 05:07:31 GMT

Great plan McCain. Only thing is you propose only writing down the loans of those that put money down and gave full documentation. So after you write down all those loans, what are all their neighbors going to do that weren't as smart to have put money down on their homes and give full documentation. Even though they've been able to make payments on their homes and keep their homes for years now. They are just not responsible buyers, right? I guess they are just bad people and need to be punished, right? Let's just force them to foreclose. McCain you're full of it. You must have only one brain cell left in your head and suffering from senility.

re: The Politics and Policy of McCain's New Mortgage Proposal

jw360 — Thu, 09 Oct 2008 06:40:21 GMT

John McCain's American Homeownership Resurgence Plan

http://www.johnmccain.com/mccainreport/Read.aspx?guid=b73bbd90-c0ba-4fe9-af93-87ec54c5de5b

re: The Politics and Policy of McCain's New Mortgage Proposal

C. MacLean — Thu, 09 Oct 2008 06:43:19 GMT

So we buy up "bad" mortgages, and renegotiate the price? Obviously, there wasn't time for McCain to go into detail, not his fault, but there is a LOT of detail missing. Who sets the price and/or the terms, the government or the mortgage company (assuming you can figure out who actually owns the mortgage?) What constitutes a 'bad' mortgage? What happens if there is a profit when the house is sold?

And what do we do about people who are not in subprime loans, who have fixed rate mortgages but lose their jobs due to the recession - do they qualify too, since they will be losing their house through no fault of their own? Or do we just reward people with ARM's who stay employed?

Scary times, scary plan.

re: The Politics and Policy of McCain's New Mortgage Proposal

BunchofChemies — Thu, 09 Oct 2008 06:50:57 GMT

When McCain mentioned this mavericky, socialist proposal in the debate, about 5% of his ultraconservative base must have peed their pants. They are now taking a very close look at Bob Barr, the Libertarian who is a former Republican. The rest of them aren't clever enough to realize that he is talking about making the government take a hit that will cost their children and grandchildren dearly.

Obama's plan makes more sense. Buy the distressed notes from the banking system to restore confidence in the finance system, even Bush/Paulson realized this as step one. Freeze foreclosures is step two. If people cannot pay their mortgage, they pay rent determined as a percent of their income and can stay in the house for now.

Liquidify the monetary system, that is, print lots of money. Boost the minimum wage and cut taxes on the middle class. Typical Democratic Keynesian demand boost to get the economy growing again a la FDR. Let inflation bring up incomes and prices throughout the economy, 12-16% in three years. Suddenly, the distressed mortgages are no longer upside down. Houses start selling again, at prices that allow the government to recoup its investment. People in over their head can cash out with no profit to themselves if they would have been foreclosed, but only when they can sell at a breakeven price. The banks are re-regulated per sound Democratic economic management of the economy. Convince the Republicans to forever disavow supply-side economics and deregulation using the bully pulpit and success at preventing another Great Depression. No socialism, no loss to the taxpayer, no debt for our children. Who loses? We all pay the price via inflation, but we all gain by avoiding depression. With the mismanagment under Bush and the Republicans, there will have to be suffering, my friends.

re: The Politics and Policy of McCain's New Mortgage Proposal

TomTraubert — Thu, 09 Oct 2008 12:11:42 GMT

loriw

You are very uninformed, and that is unfortunate. You should try to educate yourself, you'll be glad you did.

Start here:

http://www.doctorhousingbubble.com/10-reasons-why-california-is-years-away-from-a-housing-bottom-rebuttal-to-those-calling-for-a-bottom-for-california-housing/

The situation I described below can be found all over California, Arizona, and Nevada.

re: The Politics and Policy of McCain's New Mortgage Proposal

Aditya Mookerjee — Thu, 09 Oct 2008 12:12:49 GMT

Perhaps, the government agencies could act as an intermediary in a different way. The person who has mortgaged the house, deals with the party, to whom the house is mortgaged, and the government acts as an adviser to the person who has mortgaged the house.

re: The Politics and Policy of McCain's New Mortgage Proposal

damitajo1 — Thu, 09 Oct 2008 12:40:22 GMT

Pretty good analysis -- but many of it lacks the boldness of McCain's plan (lol). Anyway, I'm a Democrat, but I am pretty disgruntled with the liberal worshipping of Obama. Yes, McCain is playing politics, but at least he came up with a proposal! Obama has been going around saying "we should" do something like this, but McCain has actually spelled out something. But for the kool-aid addicted media, that means nothing.

By the way, Hillary Clinton was the first one to make this proposal -- not Obama -- and McCain's campaign cited her as the inspiration in a NY Times article yesterday. Also, the fact that the Bailout legislation already permits this is only partially true. Yes, the bailout permits the feds to buy mortgages, but most of that legislation is about financing and regulating the purchase of mortgage-backed securities or other assets to help distressed banks - not homeowners.

As much as this represents a political ploy, I commend McCain. Obama always complains and criticizes and promises change. But as Clinton's supporters have said all along -- change is very empty. He has complained McCain's plan, but does not have one of his own. If he's the middle-class savior, why doesn't he have a plan? Here's a good take: http://dissentingjustice.blogspot.com/2008/10/obama-housing-flip-flop-rejects-mccains.html

re: The Politics and Policy of McCain's New Mortgage Proposal

damitajo1 — Thu, 09 Oct 2008 12:45:11 GMT

PS: Andy - your column would have been bold, if you had asked -- which no one in the media will do, except for rightwingers -- where Obama's plan is. I am surprised that the middle-class relief man does not have a plan, and only Clinton and McCain have produced one. Yes, the plan is expensive, but so is the bailout for Wall Street. Obama supports the bailout, but not a plan that provides direct relief to homeowners. More of the same? Maybe.

http://dissentingjustice.blogspot.com/2008/10/obama-housing-flip-flop-rejects-mccains.html

re: The Politics and Policy of McCain's New Mortgage Proposal

TruthForward — Thu, 09 Oct 2008 12:52:34 GMT

Why would anyone worship Obama or any man? Just admit that people believe he is the best person for the job of presidency. Obama is very well rounding, has integrity, able to grow and adjust to surprises, etc. etc. Obama surrounds himself with economic gurus and military gurus too.

McCain on the other hand is incoherent and erratic. And I worry about McCain's health. The presidency would be very taxing. Further, McCain surrounds himself with people who the public can not take seriously or believe... top china lobbyists, Palin the non-environmentalist, who else.

re: The Politics and Policy of McCain's New Mortgage Proposal

TruthForward — Thu, 09 Oct 2008 13:11:45 GMT

McCain though he was being original.

re: The Politics and Policy of McCain's New Mortgage Proposal

cowen123456 — Thu, 09 Oct 2008 13:58:05 GMT

Newsweak is weak! The paulson plan buys morgages from banks and may or may not re-negotiate with owners....no plans in place. Mccain's proposal is to have an option on the table to go directly to home owners and re-negotiate their mortgages down to market valude. Paulson's plan has banks as the middle-man. Mccain's proposal, cut out the middle-man and takes the rescue directly to home-owners!

Obama and the media can gain up on Mccain to twist and paint this proposal with their lies....and i imagine they have the money to do so. However, the public has what's called common sense, which no amount of money can buy.

I will make this prediction. I believe that Mccain did not make it to where he is today because he has been a poster child for republicans. He is not where he is today because he has been politician of the month for democrats. Mccain is where he is today because of voters. They have been the only force that placed him here and they...the voters will be the force that will place him in the whitehouse.

Not only do i think Mccain can win, I believe Mccain will win! Accept it, love it, learn it and embrace it! Mccain, the bi-partisan warriror of the senate is our next president of the US.

re: The Politics and Policy of McCain's New Mortgage Proposal

olderwiser — Thu, 09 Oct 2008 15:20:16 GMT

Mc Cain actually didn't know what he was saying. He thought that he was simply adding a new twist to the bailout already in effect, and trying to take some unearned credit for what others had already done. The man really doesn't understand economic things, as he has admitted in the past. Watch him now as the campaign tries to iron this out and make it a vote getter. Stranger things have happened in politics. Desperation is making this a truly sad fiasco for a country that deserves better.

re: The Politics and Policy of McCain's New Mortgage Proposal

millerm84 — Thu, 09 Oct 2008 15:28:55 GMT

Loriw you had a bad experience at a rally, not from what the candidate had to say, but by the staffers and event organizers. This kind of thing happens all the time at events things change people get shafted. Staffers and organizers usually don't stop in major events for flags, pledges, or prayers; its just the nature of the business. And the most logical reason for moving the event outside was, because the fire marshall said too many people were expected to the event, and they had to move outside or shut down. Again this type of thing is common, but people shouldn't vote for or against a person for how their staffers work an event, the election is vastly more important then that single event.

re: The Politics and Policy of McCain's New Mortgage Proposal

4astrongamerica — Thu, 09 Oct 2008 15:55:58 GMT

Hey not.Brit...here's a sports analogy for you. Who is actually a more valuable player? Who would you rather have on your team? The guy who rides the bench and calls in an occasional play from the sideline or the Quarterback who's actually out there leading and making crucial plays in the game. This game's not over folks. We're in the 4th quarter, the opponents are up by two at the two minute warning. We just got a first down and have the ball on the fifty yard line with one of the best, most experienced quarterbacks in the league. A touchdown or a field goal will win it. We have an experienced leader and outstanding patriot on our team. I'll take experience and leadership over the unproven rookie any day.

Down 4 points in the polls with 26 days left in the campaign. There's plenty of time left to pull off a big win. It's been done before and may very well be done again. It would not be smart to count McCain out.

re: The Politics and Policy of McCain's New Mortgage Proposal

tiredoflies — Thu, 09 Oct 2008 16:16:05 GMT

Looks like McCain and the republicans are now trying to buy everything bad in our economy in an attempt to make it all look better just to get republicans elected.

Never before in my time (57 years) have I seen such a frenzy with the government trying to wholesale buy away our economic problems.

This current buying is all about a very important election.

Without this election, sure, they would still be trying to help the economy, but NOT to this degree.

re: The Politics and Policy of McCain's New Mortgage Proposal

jnakhoul — Thu, 09 Oct 2008 16:35:24 GMT

great idea john make a bad proposal worse!

re: The Politics and Policy of McCain's New Mortgage Proposal

bluebloodedLV — Thu, 09 Oct 2008 17:33:01 GMT

Some of you saying you didn't hear Obama's plan or that he doesn't have a plan forgot to read past the first paragraphs which states:

"At the time, however, few analysts knew what to make of McCain's revelation. For starters, last week's $700 billion bailout bill had already given the Treasury Secretary the authority to buy the mortgages of homeowners in financial trouble and replace them with more affordable loans--a move that Barack Obama recommended at a news conference in early October. So it didn't seem especially novel. Second, McCain didn't provide much in the way of specifics on stage at Belmont. "Is it expensive? Yes," he said. "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." A nice sentiment, sure. But not exactly the sort of entree that experts could sink their teeth into."

For anyone to say they don't know enough about Obama is a total cop out. He has been specific and consistent for over a year now people. This is just a cover up for saying you don't trust Obama - you're choosing not to find out the details about the choice you make in November....pretty small minded and unpatriotic in my view. The information is there - you just have to look a little and then form your own opinion. Stop letting the news outlets and pundits tell you what to think. Don't be weak!!

re: The Politics and Policy of McCain's New Mortgage Proposal

TruthForward — Thu, 09 Oct 2008 17:42:40 GMT

500,000 Internet posters have said this. And McCain just caught on.

re: The Politics and Policy of McCain's New Mortgage Proposal

BeingSensible — Thu, 09 Oct 2008 18:00:49 GMT

I still don't get why people who bought homes that were way more than they can afford should be bailed out? Does the McCain plan have anything in it for those of us who live within our means, pay our mortgages on time? Why can't we get some relief on our mortgage balances too?

re: The Politics and Policy of McCain's New Mortgage Proposal

cani77 — Thu, 09 Oct 2008 18:23:09 GMT

In a few weeks we will make a choice that will decide our future.

I follow an economist named Bob Proctor. He has called the top and bottom of every market crash since the 70s correctly.

Also, he perfectly predicted the current real estate market meltdown and the picture he paints about what will happen in the next couple years

is terrifying.He thinks it will be worse then the great depression.

The banks in the U.S. are going under one after the other. Countrywide ,Bear Stearns, Lehman Brothers and Merrill Lynch , Fanny and Freddy Mae ,AIG

The government took them over because they are essentially bankrupt. Even with the goverment nationalizing hundreds of billions of dollars in debt the stock market is crashing

the credit markets are frozen and all of us may suffer beyond anything in the last 80 years.

McCain just like Bush " doesn't understand the economy".

That not just my opinion its his own words. Not only does he not understand how to fix it but he does not understand exactly what is broken.

It is no surprise that he doesn't. The people that make up these securities use complex mathematical models very few people understand.

Bush and McCain both can take the credit for this mess since they helped deregulate the laws that were protecting us.

Bush's economic advisor Phil Graham wrote the deregulation bill that allowed banks to take huge risks with all of our future.

Now, Phil Graham is the head of McCain's economic policy.He is also McCain's choice for the next secretary of the treasury.

No one in this country can afford for that to happen. The last time Bush met with his economic advisors was in March. He didnt realize that anything was wrong. Phil Graham had the guts to say that we are in a mental recession after he helped create the worst economy meltdown in our lifetime. Check out this link to the truth http://my.barackobama.com/keatingvideo

It will take the best and brightest minds in the world to get us out of this nightmare. As bad as Bush has done, McCain would be

even more destructive because things are in much worse shape. The next president will not inherit a surplus like Bush did but a crashing economy and a 11,600,000,000,000 (trillion) dollars deficit. Most of it Bush created and it will take decades to pay it back.

If you do what you have always done then you will get what you have always got.

When it comes to policy Bush and McCain are the same 90 percent of the time.

So why are the polls even close then ?

Mccains team just said they no longer want to talk about the economy.Instead they would like to spend time talking about obama

which means running the biggest smear campaign in history.

They think they can just tell you lies and you wont be smart enough to see through it

Let's teach him we are smarter than that .

Elect Obama Biden 2008

Check out this video of sarah palins interview and ask your self if she understands what she is talking about.

http://www.youtube.com/watch?v=r36Xc0GG4iQ

re: The Politics and Policy of McCain's New Mortgage Proposal

cani77 — Thu, 09 Oct 2008 18:23:19 GMT