Are you Republicans proud?

Chapdog said:
Nahh its all a numbers game. The note on the mortgage will not be cut. What will happen is say for someone like me who has a 15year mortgage that runs me 2700 a month. I could refinance out to 40years at say 6% and would cost me 1500 a month.

But luckily I dont need to do that and my house will be paid off within 10years. But if i lost my job and for some reason couldnt get a new job then sure id take it.
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http://money.cnn.com/2008/10/08/news/economy/McCain_mortgage_plan/index.htm?cnn=yes

"He said, "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."

doesn't sound like a simply refinancing to me Chap.
 
McCain is desperate and he is being stupid. I don't think it will even buy him anything anyway once people find out Obama has the same proposal:

"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."
http://www.breitbart.com/article.php?id=D93MEE3O0&show_article=1
 
Apparently, the details of what McCain was talking about having fully been fleshed out, his plan is not what Treasury is authorized to do nor what Obama has been talking about.

Basically, McCain wants the government to buy shitty mortgages at full face value and then renegotiate the principal and interest on those loans. Basically, the mortgage lenders get full return on their reckless loans and the taxpayers pick up the difference between the face value and the actual value with no possible means of recouping the value (even in fantasy land).

It's a horrible proposal.


http://www.politico.com/blogs/bensmith/
 
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Dungheap said:
Apparently, the details of what McCain was talking about having fully been fleshed out, his plan is not what Treasury is authorized to do nor what Obama has been talking about.

Basically, McCain wants the government to buy shitty mortgages at full face value and then renegotiate the principal and interest on those loans. Basically, the mortgage lenders get full return on their reckless loans and the taxpayers pick up the difference between the face value and the actual value with no possible means of recouping the value (even in fantasy land).

It's a horrible proposal.


http://www.politico.com/blogs/bensmith/
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???
But Obama's own economic advisor stated he would buy the mortgages directly. Presumably that would be at face value if it's direct.

"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."
http://www.breitbart.com/article.php...show_article=1
 
Desh said:
The world is constantly trending towards liberal ideas.

I am not a socialist and dont want a solcialist world.

I want a free market society with some social programs to protect all peoples basic needs and Good solid regulation to prevent the monied interests from owning the lives of the the majority of the population.

Conservatives seem to want nothing to improve because they hate certain words.
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SOCIALISM PWNS COMRADE!
 
KingCondanomation said:
???
But Obama's own economic advisor stated he would buy the mortgages directly. Presumably that would be at face value if it's direct.

"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."
http://www.breitbart.com/article.php...show_article=1
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Your link is busted. I presume that the comment came out before the full details of the proposal were laid out. As of this morning everyone seemed to assume McCain was talking about the powers that the Treasury has under the bailout bill. That's not the case.

After the details were laid out, the Obama campaign responded thusly:

Senator McCain’s first response to this economic crisis was to say that the fundamentals of our economy are strong. Since then, he’s acknowledged that there is a crisis and offered multiple plans, sometimes conflicting. Last night, in his latest attempt to get it right, he threw out a proposal that appeared to give the Treasury authority it already has to re-structure troubled mortgages. But now that he’s finally released the details of his plan, it turns out it’s even more costly and out-of-touch than we ever imagined. John McCain wants 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. The biggest beneficiaries of this plan will be the same financial institutions that got us into this mess, some of whom even committed fraud.

Since this beginning of this crisis, Barack Obama has demanded that any rescue plan must protect taxpayers and ensure that they share in any profit once the economy recovers, and he worked to include that principle in the plan that passed Congress. John McCain’s plan to overpay for bad mortgages by handing taxpayer dollars over to big financial institutions is erratic policy-making at its worst, and it’s not the change we need to strengthen our economy, create new jobs, and keep Americans in their homes.
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http://www.politico.com/blogs/bensmith/1008/Obama_will_oppose_McCain_mortgage_plan.html?showall
 
Why not just ask McCain what he tried to say himself?

The McCain Resurgence Plan would purchase mortgages directly from homeowners and mortgage servicers, and replace them with manageable, fixed-rate mortgages that will keep families in their homes. By purchasing the existing, failing mortgages the McCain resurgence plan will eliminate uncertainty over defaults, support the value of mortgage-backed derivatives and alleviate risks that are freezing financial markets.

The McCain resurgence plan would be available to mortgage holders that:

* Live in the home (primary residence only)

* Can prove their creditworthiness at the time of the original loan (no falsifications and provided a down payment).

The new mortgage would be an FHA-guaranteed fixed-rate mortgage at terms manageable for the homeowner. The direct cost of this plan would be roughly $300 billion because the purchase of mortgages would relieve homeowners of “negative equity” in some homes. Funds provided by Congress in recent financial market stabilization bill can be used for this purpose; indeed by stabilizing mortgages it will likely be possible to avoid some purposes previously assumed needed in that bill.

The plan could be implemented quickly as a result of the authorities provided in the stabilization bill, the recent housing bill, and the U.S. government's conservatorship of Fannie Mae and Freddie Mac. It may be necessary for Congress to raise the overall borrowing limit.
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http://www.johnmccain.com/Informing/Issues/Read.aspx?guid=b9af0d4c-9c0e-4a97-b27f-19df8cfec83d
 
And how much is it going to cost to recertify/refinance all those mortgages ? Will that cost be paid from the 700 bill or from additional govt funds ?
the taking of the loss on the bad mortgages will not be the only cost to the taxpayers.
 
The press release that I quoted says $300 billion. The plan appears to attempt to modify the Fat Bastard that was born last week. :p
 
Southern Man said:
The press release that I quoted says $300 billion. The plan appears to attempt to modify the Fat Bastard that was born last week. :p
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It attempts to modify the Fat Bastard by making it a fatter bastard. The proposal that McCain is now pushing (conveniently after the bailout bill is a done deal) was rejected by negotiators are being (1) too costly to taxpayers since there is absolutely no way whatsoever for taxpayer to actually make out on the mortgages that are purchased since it the plan is to restructure both the principal and interest while they would be purchased at face value and (2) would reward the institutions that are now holding the mortgages and that made the risky mortgages by giving them full payment on loans that never sould ahve been made.

It's a really really shitty plan. One that was either not though through by the McCain campaign (and the campaign's response to reporter questions suggests this is the case) or they thought no one would look behind the curtain.
 
uscitizen said:
And how much is it going to cost to recertify/refinance all those mortgages ? Will that cost be paid from the 700 bill or from additional govt funds ?
the taking of the loss on the bad mortgages will not be the only cost to the taxpayers.
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Did you read the bolded portion of the post directly above this one that I am quoting? Most of your answers were in there. It would be a portion of the 700 bill. This would cost and it sucks as bad. The apparent need to give middle America some of the benefit from the bailout (excuse me, "rescue") Bill again strikes an ugly mole onto the face of government.
 
Damocles said:
Did you read the bolded portion of the post directly above this one that I am quoting? Most of your answers were in there. It would be a portion of the 700 bill. This would cost and it sucks as bad. The apparent need to give middle America some of the benefit from the bailout (excuse me, "rescue") Bill again strikes an ugly mole onto the face of government.
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Actually, it would suck a whole hell of a lot more. It rewards the holders of the mortgages and the lenders that made the shitty loans in the first place by buying up the loans at face value, all while assuring that there is no possible way for taxpayer to recoup the expenditure. It is absolutely horrible:

Sen. John McCain (R-Ariz.) made an overnight change in the homeowner bailout he proposed at Tuesday’s presidential debate, making it more generous to financial institutions and more costly for taxpayers.

McCain's staff says it was always meant that way.

When McCain sprung his surprise idea at the start of the debate in Nashville, his campaign posted details online of his American Homeownership Resurgence Plan, which would direct the government to buy up bad home mortgages, allowing strapped people to keep their property.

The document posted and e-mailed by the McCain campaign on Tuesday night says at the end of its first full paragraph: “Lenders in these cases must recognize the loss that they’ve already suffered.”

So the government would buy the mortgages at a discounted rate, reflecting the declining value of the mortgage paper.

But when McCain reissued the document on Wednesday, that sentence was missing, to the dismay of many conservatives.

That would mean the U.S. would pay face value for the troubled documents, which was the main reason Sen. Barack Obama (D-Ill.) gave for opposing the plan.

A McCain campaign official explained the change: “That language was mistakenly included in the initial draft and it’s been corrected. It doesn’t reflect the intentions of the initiative, which necessitated the correction and the removal of the sentence. A simple mistake.”

Obama Campaign Economic Policy Director Jason Furman said in the campaign statement opposing McCain's plan: "John McCain wants 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. 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 McCain campaign estimates in both documents that the plan would cost about $300 billion.
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http://www.politico.com/news/stories/1008/14414.html
 
Dungheap said:
It attempts to modify the Fat Bastard by making it a fatter bastard. The proposal that McCain is now pushing (conveniently after the bailout bill is a done deal) was rejected by negotiators are being (1) too costly to taxpayers since there is absolutely no way whatsoever for taxpayer to actually make out on the mortgages that are purchased since it the plan is to restructure both the principal and interest while they would be purchased at face value and (2) would reward the institutions that are now holding the mortgages and that made the risky mortgages by giving them full payment on loans that never sould ahve been made.

It's a really really shitty plan. One that was either not though through by the McCain campaign (and the campaign's response to reporter questions suggests this is the case) or they thought no one would look behind the curtain.
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Until I see some debate on it by economists I'll reserve my judgment.
 
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