John McCain's Bottom-Up Housing Bailout

Step 2

Step Two: Government buys the distressed mortgage

If the troubled borrower qualifies, the government will buy the mortgage.

Buy the mortgage from whom? This oversimplication ignores the fact that most mortgages are part of securitization pools. That's especially true of the subprime and Alt-A loans that are at the heart of this crisis. Multiple investors own a piece of most individual mortgages. That's why the Treasury's TARP approach, which focuses on buying securities as well as whole loans, would be more effective. It would give the federal government much more leverage to renegotiate loans.

Nancy Vanden Houten of NJ @ Oct 10, 2008 07:39:46 AM

McCain's Bailout

Please, the only people McCain's guaranteed to bailout is his corporate criminal cronies.

John McCain is a facilitator of fraud against Americans. He cost the American tax payers billions of dollars with his deregulation polices and protection of corporate criminals. Please see for yourself.

http://www.keatingeconomics.com/

Jessica of MN @ Oct 09, 2008 20:12:31 PM

McCain's Bottom

Please, the only people McCain's guaranteed to bailout is his corporate criminal cronies.

John McCain is a facilitator of fraud against Americans. He cost the American tax payers billions of dollars with his deregulation polices and protection of corporate criminals. Please see for yourself.

http://www.keatingeconomics.com/

Jessica of MN @ Oct 09, 2008 20:09:11 PM

the plan

John McCain's American Homeownership Resurgence Plan

http://www.johnmccain.com/mccainreport/Read.aspx?guid=b73bbd90-c0ba-4fe9-af93-87ec54c5de5b

jw360 of NV @ Oct 09, 2008 02:57:43 AM

jw360

Listen to this video.

http://shortsaleblogger.com/anyone-listening-to-peter-shiff-now-short-sale-solutions/

This makes sense. Mass principle write downs are the only real solution. The banks are going to have to take the hit. They sold these homes for more than they were worth. There needs to be a class action lawsuit against these banks and lenders and force them to write off the principles of all these mortgages. It's that simple. Then if they want to, let them sue all the appraisers or builders that told them these homes were worth more than they really were. I mean if someone tells you your buying a $200,000 gold & diamond ring, and it turns out to be a cubic zirconia and gold ring worth $100,000, isn't that fraud? Wouldn't you sue that person, and have them sent to prison?

Jim of NV @ Oct 09, 2008 00:13:23 AM

Fat Cows

Please read related article titled: "It's Not Always The Pork. The Cows All Have To Be Fed Too." at http://www.cliffyworld.com/blogs

cliffyworld of NJ @ Oct 09, 2008 00:07:09 AM

You that Lost Your Home

Maybe he government can buy you a nice 4 bedroom ranch on Malibu beach with a 3 car garage equipted with a BMW? I feel your pain but how exactly is that 'my problem'? I lost big in a real estate deal and have lost on stock purchases many times! I am down 30% now for something I had no hand in. Because of all the sucker loans Americans have lost 2 trillion dollars!!! Maybe we should ask Uncle Sam to replenish the money lost here as well? Do you think he can afford it?

Mike of MI @ Oct 08, 2008 19:04:57 PM

Silly Idea!

Why in the world should the banks and idiots who took out 'liar loans' be rewarded like this? I would rather my IRA take a huge dump then allow this nonsense to ever come to fruition. I have always been frugal with money and never bit off more than I could chew. These people with sub-prime loans and the bankers and insurance companies were all greedy (one as greedy as the other) and tried to perpetuate fraud! Investigate them all and where guilt is found then prosecute. Prosecute the bankers who failed to retain proper cash reserves, the insurance executives who wrote the credit swaps and failed to ask for collateral and lastly the homeowners many who lied on their loan applications. Let's clean this mess up, make examples of the guilt and restore confidence in our financial systems. In the meantime, we must prepare for a rough ride but keep in mind that there are many great companies out there that have done things the right way and with P/E's as low as they are will be a bargain once people realize that our government is serious about restoring faith. Our economy will endure. Let's hope these crooks aren't allowed to.

Mike of MI @ Oct 08, 2008 18:52:23 PM