[quote=arraya]”As president of the United States, 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, at the diminished value of those homes, and let people be able to make those payments and stay in those homes. Is it expensive? Yes.”
Sounds like a true fiscal conservative..[/quote]
The Treasury already has the authority to buy the houses and have the loans renegotiated. As of Oct 1st, the bill that past in late July gave them that power.
What McCain offered up last night, and was explained in greater detail by his advisor Holtz-Eakin this morning, is that he will have the government buy the mortgages AT FULL VALUE from the bank. Then renegotiate the loans that the taxpayers now own.
In other words – it’s a terrible deal for the taxpayers, but a great deal for the banks.
For what it’s worth – I’m against the home mortgage bailouts. I feel that ALL parties involved in this lending free-for-for all should suffer the natural consequences – buyers who bought out of their price range due to some misguided sense of entitlement, banks who made loans to people who could not afford to make the payments. Consequences for all!
