McCain's plan to buy mortgages makes zero sense. -

[knowbody0]

buy the bad mortgage, refinance so the homeowner can stay in his home at a lower loan amount absolutely will not raise the value of the homes around that home. how can he possibly believe this crap enough to spew it?

[HeraldSquare212]

1. Besides, what about us renters? I always lose out because I live in Manhattan.

[Johonny]

2. We in LA

feel your pain. Nothing for us renters ever.

[JackintheGreen]

5. You lost when you settled in NYC

:evilgrin:

[jakem]

8. you get better food choices. it is a fair trade.

[high density]

9. ...and what about those living with "good" mortgages?

I rent because I can operate a calculator and understand that I can't afford the house I'd want to live in. My parents own their home, pay the mortgage time, but they don't get ahead. Instead of helping responsible people who may have their heads just above water, John McCain proposes that we help out the people that made colossal financial mistakes. The federal government cannot afford to subsidize a group of people that want to live beyond their means.

[knowbody0]

11. and the cash goes to the mortgage holder

who will then have to pay out to the traders and divesters who played poker and partied on the poor sap who took out the mortgage. and remember, their line was "why rent when you can own for the same price or lower with zero down, no closing costs, no credit check. insanity

[jwirr]

3. One of the things that really angers me is that these plans to buy up

the mortgages does nothing for those who have already lost their homes. The thing that would help all is to get our nation back on track and creating good jobs for people again.

[knowbody0]

4. any mortgage reduction would have to be across the board

and that would be impossible, plus it definitely is for the "haves" and zero the the "have nots" it's ridiculous. loss of jobs is the true reason for our failed economy.

[cliffordu]

6. And in the same set of paragraphs he said something about Obama and socialism...

[DrToast]

7. He's just trying to spread the wealth.*

*

[knowbody0]

10. he's simply lost cognitive thought process.

another sign of dimentia

[Xithras]

12. While there are valid critcisms, I don't think that's one of them.

If a homeowner has a $350,000 mortgage on a home worth $175,000, rewriting the mortgage will lower the value of the surrounding homes as well.

But if that house goes to forclosure, the bank is just going to resell it anyway for the $175,000 it's currently worth. The impact on the neighborhood is the same either way.

Truthfully, there is no way to do a bailout plan that will raise the value of homes again. The values we saw over the past 8 years were artificial and fueled by speculative lending. There's no way to restore those values without returning to the same kind of speculative lending that led to this mess.

Personally, my problem is with the basic concept itself. I support mortgage writedowns, but the losses should be taken by the banks, not the taxpayers. The banks made the speculative loans, the banks artificially drove up the real estate prices, and now the banks want even more bailouts so they don't have to endure the pain of the situation they created.

Mortgage writedowns should be mandatory and across the board, but they shouldn't be subsidized by the federal government.

[knowbody0]

15. exactly

it took 100% co operation, from the appraisers to the underwriters at the conception of the loans, and the investers knew exactly what they were buying.
it went faster than an amtrak and everybody got on board.

[Morning Dew]

13. his version of renegotiating

is to reset the mortgage to the current (lower ) value of the home. This is wrong, wrong, wrong. It would allow owners of "bad" mortgages to potentially reap huge profits down the road.

If you want to renegotiate, perhaps turning a 30 year mortgage into a 40 year mortgage would allow the homeowner to stay in the home with an affordable payment.

McCain's plan is crazy talk.

[Vinca]

14. It actually screws the owners of the homes around the bad mortgage home

because they will still be stuck paying the full tilt on their mortgages. McBush's plan punishes people who have made their payments on time. To equal the playing field, owners around the government-refinanced home need the same deal. Why aren't the Republicans screaming socialism here?

[iiibbb]

16. It makes perfect sense... buy all the bad deriviatives... buy all the bad loans.

Then the gov't only owes itself... so it pays itself and everything goes away.

Don't you get it?

It's like by dad loans my brother $100 to buy a bike, but he can't pay it back. So I buy the bike from my brother for $100,... and then buy the loan from my dad for a $100.

Now it's $200

Double your money!!!

[crossroads]

17. It makes sense for his base! Stupid wingnuts!