This latest desparate effort by McCain to come up with something new, anything new, on the economy, received a lot of play this morning (MSNBC, NPR, Pollster headline roll, etc.).
Putting aside (1) McCain's pathetic "this is not his idea, or their idea, it's MY idea" (actually it sounds like it might be a version of a plan a Columbia University business professor's been floating for several months), and (2) the fact that Obama clearly caught him unaware of the fact that the authority to do this is already in the Bailout Plan that McCain just approved, McCain's raising this, and Obama's response, both bothered me a bit.
Here's why.
I may not be remembering this accurately, it was several bank failures ago, but I thought that during the Great Bailout Debate that it was the Faux Renegade House Republicans, joined (so far as anyone could tell) by swooping John McCain, who actually resisted adding mortgage relief, and the Democrats who actually wanted to have it added to the bill, but compromised on this point in the name of getting liquidity relief agreed to as soon as possible.
In this sense, last night (and the push by McCain in the press this morning) seemed to me to demonstrate that he is shooting for yet another role reversal--betting on a few more days of market turmoil and a few more days of McCain claiming mortgage relief for his side while Obama takes a more cautious approach, with the hope of forcing Obama to ultimately agree to the position before the next debate, at which time McCain will try to turn it into a character issue (probably, the old "Obama never takes a stand, then agrees with everyone, see he has no backbone" bromide).
OK, I'm being a little paranoid about this. I'm just trying not to be complacent. The veiled racial slurs and fear-mongering I think we are going to deal with just fine. But giving up a few points on the issue that truly has people scared out of their minds (the economy) by turning over for free what is essentially our position smells like a big, unnecessary mistake. I heard Axelrod talk about why Obama would commit to directing the Treasury Secretary to do this immediately on NPR, and he sounded uncharacteristically a little off in his explanation. (I say this fully recognizing that, from a policy perspective, I DO think it makes sense to wait a little bit on mortgages to see if the other 35 Fed/Treasury steps taken the past two weeks (commercial paper intervention, globally coordinated rate cuts, capital infusions, bank bailouts, $700 million toxic loan repurchase plan, shorting ban, etc., etc.) have actually worked given a little more time.)
Politically, I think Obama should instead be doing three things now on this issue.
First, they should immediately forcefully point out this is a McCain flip flop on mortgage relief, and that Obama always supported it and still supports it.
Second, they should talk about how McCain's latching onto this just so he can claim credit for it--like his injecting politics into the Bailout debate and his other intemperate kneejerk reactioins--is precisely the hotheadedness we don't need now, when the federal government hasn't yet even had an opportunity to put any of the approved funding or steps to use.
Third, he should argue that the important thing is that sound policies are implemented, not that somebody claims them by November 4.
The economy is scary enough that an unintentional disconnect like this could cause problems. A quick, forceful, refocusing response on mortgages would be helpful. Time's a wasting.