Last night in the debate, John McCain uttered these startling words that might have cost him the election, that is if he ever had a chance....
WASHINGTON (AP) - Republican presidential candidate John McCain is proposing a $300 billion program for the federal government to buy up bad home mortgages and allow homeowners to keep their houses.
McCain said: "Until we stabilize home values in America, we're never going to start turning around and creating jobs and fixing our economy and we've got to get some trust and confidence back to America."
In an unusual step, McCain announced the plan during Tuesday's debate. He said that as president he would direct the federal government to purchase mortgages directly from homeowners and mortgage providers. The loans would be replaced with fixed-rate mortgages, ostensibly at a loss to the government.
So let me understand this, any dumb American who foolishly bought a home he couldn't afford, gets his mortgage refinanced and his home devalued to an amount for which he can afford to pay? What about the home values in the neighborhood? If some idiot buys a house for $300K and the government decides that he can only afford a $100K home, does he get to keep that home and only pay $100K for it? That completely undermines the whole system of home valuation. Those of us who are continuing to pay our full mortgage lose big time because our homes are now worth less.
Seriously, by promising to further nationalize the mortgage industry, I think McCain may have just thrown the election. By desperately attempting to out-populist Obama on this issue, he makes the election now about who can deliver the biggest give-aways to undeserving degenerates who got into mortgage trouble through their own ignorance and gullibility. If this is really what McCain intends to do, he may have lost my vote. Maybe I'll just write in Hank Rearden in protest on my ballot.