When I heard McCain talk about Treasury working directly with borrowers and Lenders to recast mortgages, I thought that it might be a good idea to help people.  Now, we hear some more facts regarding the plan and I believe McCain is off by a little bit.  There is no way Treasury should be paying full price for mortgages just as they should not pay anywhere near full price for mortgage backed securities.  If banks are so hard up for cash, they should be glad to take 60 or 70 cents on the dollar for something that is worthless in the market.  There is no need to agree to pay full price.  If someone told me today that they would give me $14 for the stock I paid $20 for a year ago and is now trading at $5, I would jump at it.  The banks should too.  Whether it is the security representing hundreds of mortgages or the single mortgage. 

 

Once the Treasury buys a mortgage for 60 cents on the dollar, it can then refinance the loan for the individual at perhaps 65 cents on the dollar, allowing that person to keep their devalued home and not ultimately costing the taxpayers anything.  That is how it should be done.  The banks need to feel some pain too. 

 

Do I believe people should be bailed out?  I didn't.  But that train has left the station.  If we are going to bail people out, we may as well make financial institutions bear the cost rather than taxpayers.  The financial institutions are getting bailed out too, they are getting money for something they can't sell now.  They are just not getting 100% of what they loaned out.  I call it making the best out of bad situation. 

 

Finally, it is about time Senator Obama was called on to answer some questions.  He voted for the bailout/rescue, how does he think it should work?  changing the subject to his healthcare plan with its phanton savings that will (in true Obama fashion) magically give everyone health insurance and save money, is not addressing the housing/financial situation.  His magical tax cut that 95% of working people will get won't either.  Remember Bill Clinton's tax cut for the middle class that he worked so hard on but just could get done?  I give McCain credit, he is showing leadership and trying to come up with something.  Obama is all smooth talk and empty platitudes.  Senator Obama, it is time for some substance.  But you can't do that can you?  Then the American people would know how truly bad your ideas are.