This is an absolutely galling proposal that had me crying “Mitt Romney, wherefore art though, Mitt Romney?”

It is readily apparent that Phil Gramm has truly been kicked out of the McCain Campaign because I find it hard to believe that he would EVER sign on to such a potentially disastrous socializing of the mortgage industry.

First, he missed a golden opportunity to stand up and vote against the government bailout like he should have. Now he’s proposing adding $300 billion to the $700 billion already pledged to buy up “toxic mortgages?” I’m simply appalled.

How can McCain criticize Obama’s reckless and wasteful spending when his is only slightly less expensive, slightly less reckless, slightly less wasteful?

Do we believe in free market economics or not? Do we believe in the power of the free market to bring about prosperity as it always has when not sabotaged by the country’s socialist institutions or not?

Milton Friedman likely turned over in his grave tonight when McCain announced this plan. Someone check on Amity Shlaes. I hope she’s recovering from the stroke she likely suffered.

Granted, while McCain was channeling FDR’s disastrous government meddling in order to support prices, Obama was likely nodding in agreement and thinking, “why didn’t I think of that?” while doing his best impersonation of Hoover on taxes and protectionism.

McCain is still the better candidate, but just as I was beginning to think that McCain might not be as bad on the economy as I had suspected he would be in the primaries, here he goes and redoubles me doubts about his abilities to manage the economy very much better than Obama would.

What does it mean??????

“The McCain Resurgence Plan would purchase mortgages directly from homeowners”

What homeowner owns his own mortgage?

…and what to add to it.

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.

~and~

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.

What I would add to this plan:
Allow for fixed-rate 40 & 50 year terms and for those homes to be transferable to their children TAX FREE. This could have the potential to help rebuild poorer communities.

This proposal buried in the $700 billion bailout/rescue is just plain wrong wrong wrong. Allowing for judges to not only set a new fixed-rate interest on a revised mortgage loan, but to decide what the new loan principal would be.

It appears that John McCain’s Homeownership plan leaves the principal stand where it’s at, having the government temporarily buy only the primary residence (another counterpoint) and have stressed homeowners restart their mortgage loan from day one, in a manageable fixed-rate (as opposed to variable) loan.

Not allowing for (re)applicants to fudge on their loan paperwork either is another valid point of the plan.

“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).”

If I flip burgers at McD’s and some lender helped me buy a $250K home for nothing down even though I couldn’t afford my $500/mo rathole apartment, shouldn’t I get bailed out too? It sounds like McCain is trying to cut out all the poor and minorities, so the only fair thing is to bump the $300B to maybe $900B to make it more FAIR and less racist.

I’ve never been a big fan of McCain, but after hearing this silly idea last night, I have made my decision. I can no longer in good conscience vote for John McCain. I checked and Chuck Baldwin is on my state’s ballot and I’ll be voting for him. His support of the bailout and this stupid idea is the final straw.

I’ve stated this before and I now believe this to be true more than ever – I think that the republicans need to suffer a 1984 Walter Mondale style defeat this year. Hopefully this combined with the defeat in 2006 will wake some people up and realize that being a republican does not equal being a conservative anymore. I truly believe that if they want to win elections again, they need to rediscover conservative principals and campaign on those instead of bailouts, government handouts, 10 trillion+ dollar federal deficits, and buying mortgages and then lowering mortgage principal.

Baldwin/Castle ’08

As Mr. McCain’s campaign described his program, it would be available to mortgagors for whom the property is their primary residence, who can prove they were creditworthy when the original loan was made and who made a down payment. “Lenders in these cases must recognize the loss that they’ve already suffered,” a McCain campaign summary said.

Under the plan, it added, the Treasury would buy unaffordable mortgages directly from mortgage servicers and, in a reflection of the properties’ diminished values, renegotiate “manageable, fixed-rate mortgages that will keep families in their homes.” Mr. McCain proposes that the roughly $300 billion cost would be covered by the $700 billion bailout law.

Just because it was put out for the first time at the debate and not floated in prior speeches is not a bad thing. If some people can cover a home loan for more than 30 years while working in an low paying job what is so wrong with that? Look at the quote from the above postings!

Take the debt as it is off the lender’s (or investor’s) book, establish a new loan for those capable of paying it off over 30, 40 or 50 years with the option of passing on the same primary residence to their children TAX FREE, and be done with it.