October 8th, 2008
12:00 PM ET
6 years ago

McCain mortgage plan shifts costs to taxpayers

Sen. John McCain
Sen. John McCain

NEW YORK (CNNMoney.com) - Under a mortgage rescue plan announced at the debate Tuesday night by Senator John McCain, much of the burden of paying to keep troubled borrowers in their homes will shift to taxpayers.

McCain's original plan called for lenders to write down the value of these mortgages, and take those losses. McCain unveiled the new $300 billion plan in response to the first question of the debate.

He said, "I would order the Secretary of Treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes, at the diminished values of those homes, and let people make those – be able to make those payments and stay in their homes."

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Filed under: Candidate Barack Obama • John McCain
soundoff (428 Responses)
  1. Jerry, Illinois`

    Let me get this straight, I paid off two mortages during my 71 years
    with no missed payments and put 3 girls through college with
    no grants or financial help and (me) the government are to help
    people with bad loans.
    Sounds like a good plan to me.

    October 8, 2008 01:39 pm at 1:39 pm |
  2. ready for change

    mccain you don't have a clue as to what we are feeling, i've already had to leave my home and move in with a friend, before i moved i stopped my cell phone, gave up my cable. stopped shopping except for absulute essentials, i stopped everything that i possibly could, but i still had to give up my home, four more years of your ideas and most of us will be living on the streets.

    October 8, 2008 01:39 pm at 1:39 pm |
  3. Hongli.

    I'm trying to understand --–who has more brains between Bush and McCain? I'm undecided on this one so I'll give it a draw. These two scum-bags should be placed on an island to punish forever.

    October 8, 2008 01:40 pm at 1:40 pm |
  4. Mike

    Not to mention that the Plan is not really McBush's. He stole the plan from Hillary Clinton. So, bad plan and stolen. Typical McBush.

    October 8, 2008 01:41 pm at 1:41 pm |
  5. Just ask John McCain

    Maybe this is John McCain's way of connecting with the average "hockey mom" and "joe six pack". I guess if you are paying the mortgage note on several properties in your neighborhood then that will increase your home ownership. Right? May it was an idea that Sarah Palin came up with. Or maybe John wants to make sure all American's will have ownership of 13 or more house...........Just like him.

    October 8, 2008 01:41 pm at 1:41 pm |
  6. Greed is not good

    Horrible idea. I was shocked McCain said this. The Republicans complain about Democratic agendas being Socialist.

    McCain's rhetoric was absolute corporate welfare and National Socialization of the real estate/mortgage lobbies.

    October 8, 2008 01:41 pm at 1:41 pm |
  7. Raj

    After last night's debate, whatever respect I had for McCain has vanished, especially when he referred to Obama as 'that guy'. Come on , you are running for the highest office in the most powerful country in the world and you dont display basic sense of courtesy. He was so full of hatred and spite yesterday. Guess he would do that same thing when he shares stage with a world leader( if he does). There are several more veterans in this country who have undergoing more hardships than McCain and he thinks he is the only vet alive. sorry pal. U lost my appreciation for whatever you have done.

    October 8, 2008 01:42 pm at 1:42 pm |
  8. ThatOne_inTx

    Wow.
    Mr. McGoo..please sell all your homes except one. Please get down to two cars, one for you, one for your wife. Please be American enough to do that much so you can donate the rest of the money to the economy you helped destroy. How 'bout THAT for bailout plan?
    Last night was a joke. His creepy half whisper, his "Friends" blah blah blah..the rudeness and condesention he displayed. Obama took the high road, McGoo clearly is grasping.
    I have a plan. Why not require politiicans to put up a personal financial stake when they take office? That way if they screw up, they're financially liable.

    Now, on to the past. I don't care what you did or didn't support in the past. I care about your reasoning for changing your view. If you can tell me why you did what you did AT THAT TIME and WHY you are doing something different now..cool.

    McGoo and Wailin Palin are history people, abandon that self made Titanic and get with the new manager of the country. I'm a Clinton conver and I am more than comfortable voting for Mr. Obama..Yes..THAT ONE!!!

    October 8, 2008 01:42 pm at 1:42 pm |
  9. Joe Lieberman

    Senator McCain, this was already discussed last night. Did you forget?

    October 8, 2008 01:42 pm at 1:42 pm |
  10. kalkrish

    if obama comes people have to ask him how is he going to end the war? how is he going to catch bin laden ? as all of us know he is going to bomb pakistan and how is he going to handle iran? oh ,he will talk with him and say oh come on dont do this" he will say , ok obama i will stop for you and lets do some thing together and punish this people , obama will say oh yes,thats what i feel and you said the same.what a leadership.

    October 8, 2008 01:42 pm at 1:42 pm |
  11. GERRIE

    WHY DOES EVERYBODY THINK THE REPUBLICANS CAUSED THIS PROBLEM, THEY DID NOT PUSYH THESE UNSECURED MORTGAGES THRU AND THEY DID NOT HAVE CONTROLE OVER THE SENATE END CONGRESS LAST 2 YEARS

    SAVE US MC CANE

    October 8, 2008 01:42 pm at 1:42 pm |
  12. was4hillarynow4that1

    McCain's idea sounded too good to be true to me. Any plan McCain seems to have a way of benefiting those in power or the very rich. Remember his plan to give folks $5K to buy health insurance and then the truth comes out...health insurance provided to us by our employers becomes taxable income for the first time.

    Thanks but no thanks, John. I'll take "that one" over you any day.

    October 8, 2008 01:43 pm at 1:43 pm |
  13. Sarah Palin

    Senator McCain, remember when you already said this was a bad idea? Senator McCain.... Senator McCain?

    October 8, 2008 01:44 pm at 1:44 pm |
  14. kalkrish

    people who votes for obama will for sure cry in future for selecting a person who never decides in his own and will alwyas ask his party what to do,how to do and he will be like a doll in the hands of liberal people who is now in congress.

    October 8, 2008 01:44 pm at 1:44 pm |
  15. nobama

    Hey math wizards!

    NOW, you're all concerned about the deficit.
    I hate deficit spending, but sometimes something has to be done to help. If Obama had this idea you would all be praising his genius.

    Explain to me how this is different from the "Chosen One's" tax plan.
    He is going to cut taxed for 95% of Americans. Problem..Only 60% of Americans pay taxes. So his plan in fact IS wealth distribution. How very communist/socialist of him. SO he is going to hand out money to people who pay no taxes. That is deficit spending.
    Quick someone get Obama some green tights and a bow and arrow.

    October 8, 2008 01:45 pm at 1:45 pm |
  16. Obama Mama

    OK give him a break! The poor OLD thing, at least he came up with something considering they have been so busy bashing Obama!!
    Lets not forget people he had very little time to think of since they had already turned the page on the economy. It just wasn't enough!! I personally think it is so funny that the more they talk wether it is good or bad, the more America loves OBAMA!!!!!!

    October 8, 2008 01:46 pm at 1:46 pm |
  17. John McCain JUST DOESN'T GET IT

    John do your self a favor – consult an economic advisor before coming out in public with these stupid proposals. Is the Maverick really getting that DESPERET.

    October 8, 2008 01:46 pm at 1:46 pm |
  18. OBAMAKERRY

    Obama-Kerry is going to lose the election. If I were the democrats I would watch those exit polls very carefully. Obama-Kerry is a very weak candidate. In the debates you can see him faking it. Shifty eyed and a very phoney smile.

    October 8, 2008 01:46 pm at 1:46 pm |
  19. Sandi

    FIRST I WAS A REPUBLICAN. I was concerned about his age, but gave the benefit of doubt to McCain.

    THEN I WAS UNDECIDED, when he brought Palin on board and her responses to Kati.

    In the 2nd debate McCain was angry, his punches at Obama were unfounded and misleading. He seemed to be gasping for air and exhuasted. His "my friends" tagline annoyed me. Then I heard his irrational plan to bail out those who overborrowed. I cannot take it anymore.

    America cannot afford the McBush and Pitbull ticket.

    I am all for OBAMA now.

    October 8, 2008 01:47 pm at 1:47 pm |
  20. Tired of the Lies

    Hey Doug Holtz-Eakin, I thought you said it was best to enter the white house without an economic plan? I thought you said setting up some kind of commission after the inaugeration to study the economy was the way to go.

    What happened? Polls slip too low? Or did ol' John finally decide the fundamentals of the economy weren't so great after all, and maybe he should start thinking about what the president should be doing in his first months in office?

    October 8, 2008 01:47 pm at 1:47 pm |
  21. Florida voter

    I have continued to support Senator McCain in his bid for the White House. I believe in his integrity and his willingness to put the country first. Obama's affiliations with individuals and organizations that have goals contrary to the security and safety of our citizens make me wonder how we could possibly consider him to be our Leader. McCain's latest proposal for the government to buy up the bad mortgages of people who, in many cases, were misled by their realtors and lenders to buy homes they probably knew they couldn't afford gives me pause. Why should those of us who have purchased less expensive homes to stay within our budget range and worked so hard to keep up the payments pay for the misjudgment of others who were either greedy beyond their means or at least overly optimistic in their decision making? Please, John, say it ain't so!

    October 8, 2008 01:47 pm at 1:47 pm |
  22. Get Real

    Another example of McCain Stealing Obama's ideas and failing to articulate them correctly

    In Sept. and early October Barack Obama proposed that the government work with foorclosure/bankrupt judges to allow them to adjust interest rates and possible re-value individuals mortgage based on teh value of the homes to keep people in their homes and maintain cash flow into the economy.

    McCain, stole the idea, messed it up and could nto even explain. That is why when McCain brought it up in the debate Barack just laughed and did not counter the attack.. he knew McCain and DONE IT AGAIN!

    October 8, 2008 01:48 pm at 1:48 pm |
  23. Doug

    This "idea" is a smoke screen! That proposal is already in the bailout plan. Even if this was done in addition, who ends up paying for it; you and me??? McCain is desperately trying anything to score some points and is being completely erratic as he has been through the entire campaign.

    What John should do is go back to the Senate and retire when his term is up and live the "good life" with his elitist wife in one of their 9 houses.

    October 8, 2008 01:48 pm at 1:48 pm |
  24. bob

    One of my favorite moments was McCain's argument that competition will improve the quality of health insurance. Has he been asleep for the past 30 years?

    October 8, 2008 01:48 pm at 1:48 pm |
  25. Steve

    My friends, I know how to do these things

    - I know how to find Bin Laden.
    - I know how to fix the global financial crisis.
    - I know how to fix social security. In fact, this one is very easy.
    - Health care? Easy as handing the ball off to a running back.
    - The wars in Iraq and Afghanistan? I know hot to fix them as well.

    My friends, I know how to fix all of our nation's problems but I haven't because I'm waiting until I become President to do so. Why? Because as you all know, I put country first.

    October 8, 2008 01:48 pm at 1:48 pm |
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