During last night's debate, I was floored to hear McCain's promise that his administration would buy mortgages and direct his treasury secretary to 'renegotiate' with the home owners. This obvious ploy to buy votes would be denounced coming from any Democrat. Aside from comments on New Republic, I have hardly seen a whisper from 'conservatives'. Reeking of McDesperation, McCain has sunk to another new low.
Reflecting on that promise (one of many), I realized that McCain would probably purchase the mortgages at face value in order to give his McLobbyists what they want. A $500,000 mortgage on a $250,000 house today is mostly like worth less than $500,000 (and probably less then the house itself at auction). Maybe McCain is hoping to join Wall Street at the spa!
According to McCain we will be buying mortgages and "renegotiating" payments (if it were even to get that far.) While it might help speculators who have the incomes and jobs to pay off their reduced investments (come spring), many American middle-class are seeing massive inflation, job-loss, spiraling health care costs, and other expenses draining every dollar they manage to get their hands on. Are they going to be in their houses and able to afford even these reduced payments?
My 401k has lost 50% of its value since January. That was supposed to be my downpayment since I wasn't interested in an interest-only loan. I was doing things the "right way" and saving to buy my first home. Now I am looking at living in my dark apartment for another 5-10 years while the McDepression caused by deregulation has its way with my finances.
They may have bailed out (propped up) Wall Street, they may do the same for speculators, may even help out a few homeowners who knowingly (or were manipulated into) taking a bad loan, but how is all this going to help the majority of people who are at the bottom end of the middle class?
ANSWER: IT IS NOT.
VOTE OBAMA.