Diary

McCain can ride the bailout to victory

John McCain must change the way the bailout of Wall Street is perceived by the public or he will lose. If the average American keeps thinking of the bailout as a giveaway he will lose in the Electoral College by a landslide. Most people in this country are utterly ignorant about economics. Almost everyone I talk to thinks that the problems on Wall Street are bogus. That these investment banks and brokerage firms all have hidden hundreds of billions of dollars and the Republicans are just giving them more money to play with. He can’t change that mentality in a month. What he must do is point out to people that the money given to investment banks is not a giveaway. That the government is actually going to receive the mortgages and the mortgages are not just a piece of paper. He must emphasize that the government will actually own tens of thousands of homes that are now vacant and several million mortgages on homes that are occupied. He must make it clear that these are real assets. Assets worth hundreds of billions of dollars. SOON,and that’s the operative word, some huge investment bank will want to purchase these mortgages from the government so they can sell the homes that are vacant or sell the mortgages on the homes that are occupied as investment opportunities.Banks package tens of thousands of mortgages and sell these as if they were stocks. McCain and President Bush have made similar statements already,but they say it so quickly and without any conviction that people don’t pay attention to them. McCain and Sarah Palin must go throughout the country and repeat it until they are blue in the face that Wall St. is not getting a free lunch. McCain must never use the word “bailout” again. He must say, “The greedy Wall St. investment banks no longer hold your mortgage. The American people hold them. Now I can really make mortgage reform possible. My economic team will work with homeowners so that they can hold on to their cherished dream,they can hold on to their homes”. Sarah Palin,with her way of connecting with people,can pull this off. Let her make speeches every day about mortgages and victory can be snatched from the jaws of defeat.