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Back on the campaign trail, John McCain had a proposal for the mortgage crisis:
“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,” McCain said.
Barack Obama didn’t like that idea:
“Taxpayers shouldn’t be asked to pick up the tab for the very folks who helped create this crisis,” Obama said on the campaign trail. “And that’s the problem with Senator McCain’s risky idea.”
Yet today, Obama’s newly proposed Mortgage Bailout plan is little more than a copycat of McCain’s plan, except for the inclusion of $200 BILLION more dollars gifted to Freddie Mac and Fannie Mae – an option definitely not on the table in McCain’s proposal.
From Fox News:
President Obama, in rejecting GOP alternatives to his massive economic stimulus plan, cited his electoral victory over John McCain in November as proof that Americans wanted change.
But Obama’s $275 billion housing bailout plan, aimed at halting mortgage foreclosures, is drawing comparisons to a proposal championed last year by John McCain.
“I hope they took the best ideas wherever they found them. And, certainly, Senator McCain campaigned for a long time on this proposal,” said Douglas Holtz Eakin, former economic adviser to McCain and author of McCain’s plan.
Obama’s $275 billion program offers $75 billion in incentives to lenders to lower payments by at-risk homeowners to 31 percent of their income. The other $200 billion would be drawn from money approved by last year’s Congress to bolster efforts by federal lenders Fannie Mae and Freddie Mac to offer affordable mortgages and bring stability to the housing market.
Holtz Eakin says Obama has recognized the need to stop foreclosures before they happen. It’s an idea he says McCain introduced at his second presidential debate with Obama.
Housing Secretary Shaun Donovan also says McCain’s plan is not like Obama’s, explaining that Obama’s is “focused, targeted to those most at risk of foreclosure and would be far less expensive to the taxpayer than Senator McCain’s plan.”
Democrats said McCain’s $300 billion plan would have had the government basically eat the cost of reduced property values.
Now Obama’s $75 billion plan would have the government and the finance industry share the cost of declining property values for a smaller group, though it envisions pumping $200 billion more into Fannie Mae and Freddie Mac, which McCain criticized in the fall for supporting the Obama campaign.
“His pals there and the Democrats in Congress that refused to reform Freddie Mac and enact legislation to stop this crisis,” McCain charged on the campaign trail.
Donovan, however, says the money is just a backstop.
“We have no expectation that the full amount would be needed, certainly not in the short run,” Donovan said.
On that score, however, Obama officials say they are facing the problem of having to rescue institutions that are too big to fail. Fannie Mae and Freddie Mac are the mortgage market today, Obama officials say. They account for the vast bulk of mortgages and without them mortgage rates would soar and far fewer mortgages would be available.
Whether the proposal from McCain was the best solution or not, isn’t it interesting how Obama has hijacked it, claimed it as original, wise, and his own? And isn’t it ironic how – once again – he is forced to eat his own words from the campaign trail?
Much is being said about the difference in “Obama, the candidate” and “Obama, the President”. The difference between the two is becoming quite comical, as a matter of fact. A joke of sorts, really.
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The Freddi and Fannie Money is money that was already set aside for this kind of use… Am I getting my facts wrong. I believe this was approved in 2008 before Barack was president?
As for the similarities? It seems like there as a compromise reached here. How is that a bad thing or a “joke”?
DDMao
This is new money. To the best of my knowledge. Is why market expected to go up yesterday didn’t. Why today so many stocks are at 1995 lows. I’m buying Imperial Sugar (IPSU) for $8.75 today. Recently paid $10.00. o cost me $400 yesterday
Bill……..I believe you mean JD not me.
McCain, the poor soul, this was his last hurrah ! A man that deserved to be President. He faced a machine that been in the works prehaps since Al Gore. We did not have a election but a ..Coup d’état
My opinion is McCain had to come up with promises to try and compete with o. o seemed to steal any ideas that the herd liked.
I may be wrong. Just a idea!
….
Nate
o was against build up in Iraq. Look what he just did by adding troups
……….
DDMao
Sorry . My mistake.
I think you are, JD. Notice the word “more” in this sentence:
“though it envisions pumping $200 billion more into Fannie Mae and Freddie Mac”
This would suggest that it is new money.
This doesn’t appear to be a compromise at all. A compromise is something that is reached between two or more people. This is an independent directive from Obama. A directive that he publicly scorned McCain for suggesting. And that’s a joke. A bad one albeit, but a joke nonetheless.
JD
Is true a small portion comes from TARP. BIGGEST majorty comes from F/F
http://www.multichannel.c.....ush/11150-
http://www.fivethirtyeigh.....ilout.html
There is no money set aside for this kind of thing.. Rick on CNBC reaction yesterday should prove that.
JD
On one of my links you can watch Rick and the reation from the floor. You will enjoy I’m sure. When it clears
F/F was forced by Bill Clinton and Congress to make bad loans. By lowering standards. As well as financed
History now repeats itself. Guess what history we will see in our future repeat. BAIL OUT II
Babs, taken directly out of your article –
“Obama’s $275 billion program offers $75 billion in incentives to lenders to lower payments by at-risk homeowners to 31 percent of their income.
The other $200 billion would be drawn from money approved by last year’s Congress to bolster efforts by federal lenders Fannie Mae and Freddie Mac to offer affordable mortgages and bring stability to the housing market.”
***I have read the same thing with every other news source. The 200 Billion is being drawn from money already approved by congress last year.
Also, I didn’t say it was a compromise that you would agree with or McCain for that matter but from what your article is saying… Obama has married a part of his original plan with points from McCains.
Rightly or Wrongly.
JD
F/F and affordable mortgages
This is new plan. Totally different. Get in the real world
I have answered the questions on two links. Maybe you can ..PROVE… somthing different..Are will you not return to the article as you normally do
Bill, don’t take this the wrong way but I struggle to understand what you say. It is choppy and slightly incoherent.
This is direct quote from a Press briefing by -
TREASURY SECRETARY TIM GEITHNER
HUD SECRETARY SHAUN DONOVAN
AND FDIC CHAIRMAN SHEILA BAIR
ON HOME MORTGAGE PLAN
“The third important part is some additional financial support to Fannie Mae and Freddie Mac. These two institutions, in effect, are the mortgage market today. They account for the vast bulk of mortgages originated today. They play a critical role in these markets, and we need to make sure that they have the ability to play that role going forward.
And so we’ve increased substantially, using the authority Congress provided the administration last summer, to increase our financial commitment. This will be important to helping keep mortgage rates down and is a very critical, important part of recovery.”
Again, YES… OBAMA Is increasing the money but that money was already approved for its possible usage. I think we are splitting hairs here.
The point being that this addition was already approved last year for the president to use if he saw fit to. Bush didn’t Obama does.
JD
“As for the similarities? It seems like there as a compromise reached here. How is that a bad thing or a “joke”?”
Babs
“This doesn’t appear to be a compromise at all. A compromise is something that is reached between two or more people. This is an independent directive from Obama. A directive that he publicly scorned McCain for suggesting. And that’s a joke. A bad one albeit, but a joke nonetheless”.
Then JD says
“Also, I didn’t say it was a compromise that you would agree with or McCain for that matter but from what your article is saying… Obama has married a part of his original plan with points from McCains”
Read real carefully the quote below. There is a difference between compromise and indenpent direction. There was no compromise wth McCain and o on this. o did this all by himself
Babs
“This doesn’t appear to be a compromise at all. A compromise is something that is reached between two or more people. This is an independent directive from Obama. A directive that he publicly scorned McCain for suggesting. And that’s a joke”
Jd
I am not going to take you by the hand explaining this to you. Read the articles here if you want.I provided two links that any sane person can read and get the knowledge.
You get a link that talks about this new plan that agrees with you. And post it. Not the stuff you just brought. Thats not talking about the new plan
You may not know this. Money funded for one project can be given to another project that is not intend for if approved
Here is the press briefing –
http://blogs.suntimes.com.....ama_m.html
And i read your two links… one doesn’t work and the other doesn’t say much on specifics but does give his opinion…. checking again…. yup.
By the way, i liked how the guy in the second link worded his write up.
“The folks targeted by this program, at least, seem liable to be just the sort of folks who have had to do the most belt-tightening, and so the program may have some secondary or tertiary stimulative effects.”
Bill Hedges Feb 20th, 2009 at 12:22 pm
JD
“Is true a small portion comes from TARP. BIGGEST majorty comes from F/F”
Then JD said
“The point being that this addition was already approved last year for the president to use if he saw fit to. Bush didn’t Obama does”.
I believe $79 billion is amount of TARP out of maybe $479 billion
lol. My comments are already under moderation. I didn’t realize I was breaking any rules on this site. Unless, being a Democrat is breaking the rules
If anything I am at least offering another side on this site which is Republican based but looks for other opinions.
Let me know if this is going to be the case going forward and I will just not post anymore. I enjoyed youdecide2008.com and I thought I could contribute on here.
JD, my point was that at the time McCain made this proposal, Obama threw it under the bus completely – not in part – completely. Now whether he adopts part of it or all of it he looks like a hypocrit, not a compromiser. Did he secretly agree with McCain, and didn’t want his supporters to know? Or did he flip flop when saw he was wrong and McCain was right?
JD,
“lol. My comments are already under moderation. I didn’t realize I was breaking any rules on this site. Unless, being a Democrat is breaking the rules”
Everyone gets caught in the spam filter from time to time. Unless you’re abusive or profane, your comments are not being censored in any way. Just the spam filter doing its thing is all.
Jd
Stop your crying. Anyone can post here. You can debate for or against whatever. No one gets a free ride. Your writing will be challenged.
Jd I am not going to let you keep changing the subject because you can not say you’re wrong. Clear up those articles and I will get back with you.
Jd
When I come back to this siite, I go through each of recent articles begining with my last coment. Then respond. That’s how I clean up. You skip the ones you are losing.. You think people don’t see.
I make mistakes. I admit it. Unconditionly. Try it.
“lol. My comments are already under moderation. ”
No, they aren’t. New version of Wordpress is finicky and seems to catch anything with a link for some reason.
There is no moderation if you have previously approved comments.
You’re entitled to your incorrect opinion and this is the place to spew it.
I find my comments with links at night does not appear until after I go to bed. I sometimes put my link separately. My opinion is then immediately seen