the fact that obama rejected the plan after he claimed that it was his idea first doesn't surprise
me. what surprises me is that he has an economic adviser that thinks it's possible that the housing
market won't recover . . . EVER. there aren't too many ways for that to happen, but one of them
is to nationalize the whole thing.
makes you wonder why The BarackStar! opposes it to begin with, given last nights revelations that
healthcare is a right, taxation is about "fairness", and all corporations (oil, financial, insurance, and
as of last night, healthcare) are bad and must be replaced . . . it was my conclusion that his ultimate
problem is with private property.
Obama rejects McCain's mortgage buyup plan
INDIANAPOLIS (AP) - Democrat Barack Obama's campaign criticized John McCain's mortgage bailout plan Wednesday, saying it would cause the government to lose money by paying too much for bad loans.
McCain's proposal to spend $300 billion in federal funds to buy distressed mortgages was a highlight of Tuesday's presidential debate, and it seemed to catch Obama off guard. At first, Obama's campaign said he had made similar proposals and there was nothing new in McCain's remarks.
But after McCain aides offered more details Wednesday, Obama's campaign shifted gears.
The plan would cause 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," Obama economic adviser Jason Furman said in a statement. "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 statement did not detail why the plan would fail. Some mortgage officials, however, say the great majority of bad loans are owned by large pools of investors who would sell them only at prices much higher than their current worth.
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