Busted: Bankers and The Global Economy

March 26, 2008

McCain: A Radical New Mortgage Idea

mccain-mortgage-crisis-speech.jpgPresidential candidate John McCain has just proposed an earthshaking idea that is likely to infuriate bankers, mortgage profiteers and securities investors alike. In a speech on March 25, McCain proposed that the mortgage industry is responsible to return the favor of government support to reboot the housing market by offering zero percent mortgages to responsible credit-worthy borrowers. Somehow, this news managed to miss most of the mainstream press in lieu of “more newsworthy” sound bites. Most news services portrayed his speech negatively with the concept that McCain was not going to support bailing out borrowers in the mortgage crisis in the traditional sense.

“We should also convene a meeting of the nation’s top mortgage lenders. Working together, they should pledge to provide maximum support and help to their cash-strapped, but credit worthy customers. They should pledge to do everything possible to keep families in their homes and businesses growing. Recall that immediately after September 11, 2001 General Motors stepped in to provide 0 percent financing as part of keeping the economy growing. We need a similar response by the mortgage lenders. They’ve been asking the government to help them out. I’m now calling upon them to help their customers, and their nation out. It’s time to help American families.”

All of this sounds very fine, but appears to be too little and too late. Nearly 2 million of “the 4 million” problem mortgages that McCain talks about are encountering mortgage difficulties or facing foreclosure now and in the next several months. Electioneering positions won’t help these American citizens unless action is taken now. Political posturing doesn’t solve real problems. If George Bush was making this proposal, American borrowers might have some real expectation of assistance for the short-term. However, Americans can give McCain credit for having a new take on an “old” problem.

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2 Comments

  1. :)

    Good read! Thank you!

    Trackback by Mortgage Information — March 26, 2008 @ 4:55 am

  2. Just found this, post-melt-down. Maybe it would have been too little, but it certainly was a timely suggestion. I doubt it would have cost anywhere near $700B. I wish we would have had a President McCain last year instead of only Candidate McCain, someone who sees the indicators and steps forward to head off the crisis, instead of merely throwing cash at the problem after the damage is done.

    Comment by OldGuy — September 28, 2008 @ 11:55 am


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