Sunday, October 12, 2008

McCain's quixiotic mortgage plan

John McCain's $300 billion mortgage buyout plan to buy out bad mortgages is rewarding bad lending decisions. This is bailing out banks that made bad loans. This is bad borrowing/loan-paying plains by borrowers.
This plan is making economic conservatives uncomfortable with McCain's economic plans.

Toronto's "Globe and Mail" wrote the following on McCain's plan:
as several observers pointed out, by the time the next president is inaugurated in late January, 2009, much or even most of that money is likely to have been dispersed. The next Congress would have to authorize new funds.

Another question: Why would a Republican administration reward people who foolishly entered into mortgages they can't afford by giving them ones they can, paid for by those who bought or rented responsibly?

The mere thought of it appalls conservative analysts.

“This is a really bad idea,” said Dan Mitchell, a senior fellow at the Cato Institute, a conservative Washington think tank. “This is a rip-off of taxpayers to rescue people who were imprudent.”

We wonder if McCain's mortgage buy-out plan might make some conservatives sit it out, or go with Bob Barr, who is consistent with his principles.

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