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Desperate McCain Turns to Socialism    
Friday, October 10 2008 @ 01:26 PM GMT+4
Contributed by: Homey

PoliticsIn my humble opinion, the one thing that McCain is right about (as in even a stopped clock is correct twice a day) is to propose restructuring (aka refinancing) the "subprime" mortgages into fixed, low rate ones. He stole that idea from me. And the Obama camp, caught with their pants down on this one, since McCain is making the more "liberal" proposal, reacts stupidly to say that this is "just rewarding the greed of the lenders."

No. The bailout already does that. It transfers $700 trillion in additional debt to the taxpayers, plus interest to be paid by the taxpayers, to the institutions of wealth, orchestrated by Goldman Sachs. That is already a given and a done deal (more or less).

What needs to be tacked on to that, as McCain (i.e. whoever writes his positions for him) correctly proposes is to at least get to the root of the problem and help some ordinary, not-wealthy people, by stabilizing those crazy ballooning mortgages into fixed rate ones. If you are going to bail out the super-wealthy, what is wrong with bailing out people with middle and low incomes (i.e. those who were tempted by lenders into taking the "subprime deals") in one fell swoop? It is not only ethically more correct, but actually does something to stabilize the economy. No brainer.

McCain is right on this one, Obama is wrong-- probably because at this point everything has become action-reaction, and about "winning points" (not to speak of "dueling bullets").

 

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  • Desperate McCain Turns to Socialism | 17 comments | Create New Account
    The following comments are owned by whomever posted them. This site is not responsible for what they may say.
    Desperate McCain Turns to Socialism
    Authored by: pjmelton on Friday, October 10 2008 @ 01:47 PM GMT+4
    I have been following this, because it seemed like McCain's one chance to turn the election around based on substance instead of xenophobic hate, and he has utterly failed.

    There are two problems when discussing the McCain Surge idea: First, the plan sounds a lot like Obama's on the surface - but it isn't really. Second, there are two McCain plans. He posted one on his website and then people told him it was unworkable so he changed it the next day. Here is a story about the first plan:

    http://www.salon.com/tech/htww/2008/10/08/mccain_mortgage_plan/index.html

    Here is a story about the revised plan:

    http://www.salon.com/tech/htww/2008/10/08/mccain_mortgage_plan_2/index.html

    As I understand it (and I wouldn't say I have a firm handle on this, but I'm beginning to get it), what it comes down to is that you can't really buy people's mortgages because they've been repackaged into other securities and re-sold several times. After realizing this, McCain backtracked and said no, the government would buy the mortgages at their original face value - which is 1) impossible and 2) not a benefit to homeowners, who really need refinancing at reasonable rates.

    Because the mortgages have been repackaged ("securitized"), the best way to deal with the problem is to give bankruptcy judges the power to help homeowners get refi.

    This is why Democrats tried to get that power written into the bailout bill, but Republicans raised an enormous stink about it.

    ---
    Paula

    Desperate McCain Turns to Socialism
    Authored by: Maus Anon E on Friday, October 10 2008 @ 01:57 PM GMT+4
    Many people think mortgages are loans held by the banks who issued them. Not any more. Now your debt is someone else's asset, to be sold, traded, or gambled with.

    ---
    The Republican Party: Where "having it both ways" isn't only about interns.
    Desperate McCain Turns to Socialism
    Authored by: SpudHill on Friday, October 10 2008 @ 02:04 PM GMT+4
    Ed Schultz was in hysterics laughing the day after the debate. He says that
    this big new mortgage plan of McCain's already exists in some manner in
    the buy-out bill. I can't verify this, haven't looked at it BUT if it is true
    then McCain voted for a bill he didn't even read.

    Does anyone know if this is true or was it removed? Even if it was
    removed and McCain even read the different versions of the bill and was
    as "on top" of the issue as he claims wouldn't he have said in the debate
    "I propose we go back to the mortgage buy-out as was proposed in the
    bail-out bill" not present it as if it were a new idea entirely his own?
    Desperate McCain Turns to Socialism
    Authored by: annikee on Friday, October 10 2008 @ 02:11 PM GMT+4
    It's true; the bail-out bill already included much of what McCain's proposing. He must be overwhelmed and not abreast of things.

    And as far as I understand (which is hardly complete), yes, these mortgages have been bundled and rebundled so many times that you may still be sending payments to Adam, but Zeke actually holds it.

    ---
    "Landlord say your rent is late; he may have to litigate! Don't worry, Be Happy."-Bobby McFerrin
    Desperate McCain Turns to Socialism
    Authored by: annikee on Friday, October 10 2008 @ 03:46 PM GMT+4
    From an AFL-CIO email:

    "Our Priorities

    "Creating jobs for working families.
    Winning health care for all.
    Raising the minimum wage.
    Ensuring fair pay for women.
    Extending help to the unemployed.
    Lowering prescription drug prices for seniors.
    Investing in education.
    Passing the Employee Free Choice Act.

    "Their Priorities

    "Blocking all of the above. "



    ---
    "Landlord say your rent is late; he may have to litigate! Don't worry, Be Happy."-Bobby McFerrin
    Desperate McCain Turns to Socialism
    Authored by: annikee on Friday, October 10 2008 @ 09:46 PM GMT+4
    Gore Vidal's insightful take, from a more intelligent time...

    http://www.ratical.org/ratville/CAH/EnemyWithin.html#p1

    ---
    "Landlord say your rent is late; he may have to litigate! Don't worry, Be Happy."-Bobby McFerrin

    Desperate McCain Turns to Socialism
    Authored by: Homey on Saturday, October 11 2008 @ 01:22 AM GMT+4
    Oops that was $700 billion (not $700 "trillion")! Oh what does an extra
    $699 trillion matter among friends anyway? You knew what I meant,
    right?


    Desperate McCain Turns to Socialism
    Authored by: xteeth on Saturday, October 11 2008 @ 12:18 PM GMT+4
    What was it that Bugs Bunny used to say when Elmer Fudd was out with his shot gun? Be Vewy Vewy careful." Don't expect liberal economics out of Obama. He was at the University of Chicago when everyone there was under the economic thumb of the designer of the mess in which we find ourselves - Milton Freidman. I support him madly but realistically. When there is a solution to be had, the first thing that he will try will be a Free Trade solution and then if he can't get that through there might be a small step in the direction of FDR. No more than that. This is not Fredrich Douglass we are electing it is a past president of the Harvard Law Review. Please keep that in mind.

    ---
    "Some people cause happiness wherever they go, others whenever they go." Oscar Wilde
    Desperate McCain Turns to Socialism
    Authored by: annikee on Sunday, October 12 2008 @ 07:01 PM GMT+4
    All I'm holding out for is to see Import Tariffs come back. That would do a lot to even the scales.

    ---
    "Landlord say your rent is late; he may have to litigate! Don't worry, Be Happy."-Bobby McFerrin
    Desperate McCain Turns to Socialism
    Authored by: Homey on Sunday, October 12 2008 @ 06:33 PM GMT+4
    It doesn't have to be looked at as so complicated.
    Whoever holds the "derivatives" to your original mortgage, someone
    has to be servicing it, to whom you send payments. You are usually
    allowed to prepay your mortgage or to refinance it.
    So a newly-formed agency under the Treasury Department uses the
    $700 billion to refinance all the "subprime" mortgages, replacing them
    with fixed rate mortgages at 5%.
    Thereby the situation is stabilized, the present holders of the
    delinquent mortgages are bailed out, the homeowners luck out and
    save, the 5% interest goes into our Treasury and we eventually pay
    ourselves back the $700 billion by collecting the mortgage payments.
    This same Treasury Mortgage Assistance agency can provide financial
    counseling and assistance to those homeowners of the refinanced
    "subprime" mortgages who are still facing difficulties making their
    payments
    This is called socialism and it works--even if John McCain proposes
    it. The U.S. military is a socialist enterprise, for instance, although
    undue profits are handed over to vulture capitalists in the
    process, currently. That can and should be cleaned up. Profits,
    especially where taxpayer money is involved, need to be regulated.





    Desperate McCain Turns to Socialism
    Authored by: pjmelton on Sunday, October 12 2008 @ 07:41 PM GMT+4
    If McCain's horrible plan were the only option it would be one thing. But check out this even clearer explanation of the plan - which, based on some people's analysis (nothing is reliable, since the plan itself is a bit of a moving target here) - is probably actually illegal (see the link, which explains why the Paulson/Dodd/Frank bill specifically ruled out the possibility McCain is apparently advocating).

    1. The plan rewards the banks that made poor decisions.
    2. The plan helps fewer homeowners than alternative plans would.

    That's the problem. See the link to DeLong's blog.

    http://delong.typepad.com/sdj/2008/10/john-mccains-ne.html

    ---
    Paula

    Desperate McCain Turns to Socialism
    Authored by: annikee on Sunday, October 12 2008 @ 08:16 PM GMT+4
    Obama wrote about his economic plan for the NY Daily News today:

    http://www.nydailynews.com/opinions/2008/10/12/2008-10-12_barack_obama_tells_daily_news_how_hed_le.html

    ---
    "Landlord say your rent is late; he may have to litigate! Don't worry, Be Happy."-Bobby McFerrin

    Desperate McCain Turns to Socialism
    Authored by: Homey on Monday, October 13 2008 @ 09:05 AM GMT+4
    What you seem to be saying, Paula, is that Henry Paulson wrote a bill
    that DOES NOT ALLOW any bailout of the homeowners at the bottom
    of the heap (i.e., under the bill that this Congress confusedly passed,
    that would be "illegal"): bailout can be given ONLY to the big boys at
    the top.
    I am not surprised.
    The original provisions of the bill (which, as you will recall, needed to
    be passed "at once") made it ILLEGAL for the Congress, or anyone
    else, to legally challenge any use made by Henry and his Goldman
    Sachs cronies pf the $700 bailout--read: gift-- from our national
    treasury (it has been added to our national debt actually).
    They can do with it whatsoever they please, and no one is allowed to
    question it, if they don't want to go to jail.
    Isn't this the very essence of the fascism we have been observing the
    past eight years? That you are not only "unpatriotic" but also a
    criminal if you question the government transfer, via corporate
    pirate raid, of the commonwealth (i.e. our own money and assets)
    into the private hands of some of the most wealthy people in this
    country.
    McCain Letter Demanded 2006 Action on Fannie and Freddie
    Authored by: SJD on Monday, October 13 2008 @ 01:02 AM GMT+4
    McCain Letter Demanded 2006 Action on Fannie and Freddie
    Authored by: Maus Anon E on Monday, October 13 2008 @ 02:12 AM GMT+4

    ---
    The Republican Party: Where "having it both ways" isn't only about interns.

    McCain Letter Demanded 2006 Action on Fannie and Freddie
    Authored by: Homey on Monday, October 13 2008 @ 09:59 AM GMT+4
    Luis Buńuel would love this.
    (Then again, given its prolonged monotony, so would Andy Warhol.)
    McCain Letter Demanded 2006 Action on Fannie and Freddie
    Authored by: pjmelton on Monday, October 13 2008 @ 10:17 AM GMT+4
    Fannie and Freddie were victims of the crisis, not perpetrators.

    Also, if McCain is so anti-Fannie and -Freddie, why did the two agencies pay his campaign manager $15K/month for the promise of access to McCain?

    My friends, that's not lobbying reform we can believe in.

    ---
    Paula