On days like these, I feel that a fifth grader could do a better job running John McCain's campaign. Surveying the reaction to this mortgage proposal - the American Homeownership Resurgence Plan (get it?) - I can't help but think that this is going over like another razzle dazzle campaign stunt. He is hoping no one will actually look at the (scant) details of his plan, but he's wrong on that one!
Also, we have some backlash against McCain's recent campaign tactics and some good news out of Florida.
John's McCain's new mortgage proposal is coming under fire from all sides, with most agreeing that this latest move is just an attempt to prove that he is "in touch" with the economic crisis. I believe something has to be done about the foreclosure crisis, but John McCain's latest plan does not require the lenders to take any losses - instead the taxpayers are left footing the bill for the difference between the original and the refinanced loan, at least in my understanding. That is unacceptable. The original Hope for Homeowners act, passed in July, would at least require the lenders to absorb some of those losses. Obama rightly claims that the biggest beneficiaries in McCain's plan would be the lenders.
The Wall Street Journal thinks McCain's plan is a bad deal for taxpayers:
On the other hand, home prices are likely to keep falling despite the McCain plan if the economy goes into recession, so the best defense against that is to unfreeze the credit markets more quickly via capital infusions from the Paulson facility. And unlike the Paulson plan, the McCain proposal appears to offer no upside for taxpayers. They take all the losses up front and don't participate in any rebound in house prices, so borrowers who overextended and lenders who made reckless loans are made whole, and taxpayers get the bill. At least the $300 billion FHA program imposes at least a 10% haircut on lenders.
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The Washington Post editorial board concurs, calling it a "dubious answer to a real problem":
Though Mr. McCain preached against moral hazard earlier in this campaign, his team now says that the crisis has overtaken such concerns and that it's appropriate for government to pick up the tab for selected homeowners' lost equity. But unless Mr. McCain can demonstrate that this concession to borrowers is needed to alleviate the crisis and would be more effective than other measures already adopted by the Bush administration, the cost will be hard to justify.
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The Concord Monitor (NH) editorial says McCain plan bails out everyone but taxpayers:
McCain's plan would bail out homeowners who can't meet their payments and foundering lenders, who bet that home values would continue inflating forever. But it would saddle taxpayers, many of whom struggle to pay their own bills, with an enormous burden. Paying off individual mortgages might be justified, but not unless the homeowners who gambled and the lenders who made enormous profits on them also lose.
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The conservative Washington Times also got in on the action, emphasizing the criticism the plan has received from economists on the left and right:
Sen. John McCain's $300 billion plan to buy up all bad home mortgages and refinance them at a lower fixed rate came under fire Wednesday from economists on the left and the right who said his idea was a redundant, unworkable, costly scheme that would plunge taxpayers deeper into debt.
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The backlash against McCain's vile campaign tactics is beginning to spread. Several editorial boards took the lead from the New York Times editorial published yesterday morning and denounced McCain's tactics today. The San Jose Mercury News editorial has some straight talk for John McCain:
The schizophrenic campaign of John McCain is getting uglier. Losing ground as the economy tumbles, he's betting on innuendo and vilification — tactics of desperation — to defeat Barack Obama. Voters should expect better from a candidate who boasts straight talk and bipartisanship, even if he is behind in the polls.
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And if you are getting discouraged about the vile hatred spewing out at McCain/Palin rallies, just remember that there are good people out there and they are making their disgust at these tactics known. From the Fort Myers News-Press on the controversy over Sheriff Mike Scott's "Barack Hussein Obama" comment:
Editor's note: The News-Press is publishing readers' letters about Sheriff Mike Scott's "Barack Hussein Obama" comment. Nine out of 10 criticized Scott.
Just one of the reader letters published:
Dear Sheriff Scott: First, let me say that I have been a big supporter of yours for many years, and I continue to applaud your successful efforts in protecting the people of Lee County.
With that being said, I must tell you that I was extremely disappointed to hear your comments at the Sarah Palin rally at Germain Arena on Monday afternoon. Although I am not a fan of Gov. Palin in this election, it is irrelevant to the fact that our sheriff was on-stage making statements in a political rally - in uniform! You are entitled to your opinion and able to participate in such a forum; however, I do not think it was appropriate for you to appear in the uniform representing the people and law enforcement of Lee County.
I also took offense in the fact on how you emphasized the full name of Barack Obama in your comments, insinuating that Obama's middle name was related to Saddam Hussein. You probably didn't think anyone would catch on to your intention, but I did, and I'm sure other fairly intelligent folks caught on as well. Tag that with the later comments from Palin herself attempting to link Obama to a known domestic terrorist many years ago, and you can do the math.
In the past, I have supported you as our sheriff, but you will not receive my vote on Nov. 4.
JERRY SEARS
Cape Coral
Please do your part and share your disgust about McCain's tactics by writing a letter to the editor of your local paper. This nifty tool makes it very easy to send a letter to your editor.
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Good news from New York - GOP's hold on Nassau vanishes: In a county that has been Republican for over 100 years, the number of registered Democrats overtakes Republicans by a slim margin.
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Headline of the morning: Vote for 'that one' to rebuild America (Georgetown Voice endorsement).
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The New York Times editorial board is all over McCain this morning for his hypocrisy about lobbying ties:
The good, the bad and the ugly of lobbying are well known, but it’s a stretch for a man with 25 years in Washington to demonize it. His brain trust is heavy with consultants and lobbyists. Other McCain aides with past ties to the lending companies are the strategist Charlie Black; Wayne Berman, deputy campaign finance chairman; and Mark Buse, chief of staff at Mr. McCain’s Senate office.
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Finally, yesterday fellow Kossack fishgrease predicted the DOW would close at 9,272. He (?) was so close! It ended up closing at 9,258. Any predictions for today? The Asian markets did do better today, although Tokyo still closed down.
Also, what do you think of McCain's mortgage plan? Will he keep pushing it or just let it slowly fade away now that it has come under fire from all sides of the political spectrum? And no, I'm not going to discuss the Politico rumor story that so many are freaking out about. Stop freaking out!
*All emphasis in this diary is mine.