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. Ashley

    We need to clean this country up for good. I'm voting OBAMA and am voting straight Democratic from there. If we don't get the rest of the garbage out with George, then the country will still stink!!

    October 8, 2008 02:16 pm at 2:16 pm |
  2. Tina

    I still have that imagine of McCain hugging Bush.....he should have hugged a tree!

    October 8, 2008 02:18 pm at 2:18 pm |
  3. KEATINGECONOMICS.COM

    Not this time! Vote for "that one" on November 4th!

    October 8, 2008 02:19 pm at 2:19 pm |
  4. ran

    Why did they not give us 1 million each that would have cost only 300 million based on the last census not 700 billion.

    I say no more bailouts except for us. Give us the money it's ours to start with.

    October 8, 2008 02:19 pm at 2:19 pm |
  5. Dana

    ok, now i'm P*ssed. i'm not delinquent on a mortgage. I rent. i pay enough taxes as it is and i am NOT helping to bail out people who took on too much debt and cannot pay their mortgages!!!!
    McCain is ignorant and probably doing this because he thinks that the number of families affected by this may boost his vote.
    I wish i could vote twice for Obama now/!

    October 8, 2008 02:19 pm at 2:19 pm |
  6. AJ

    McCain is clueless about the economy.

    If the government is to buy distressed mortgages, there is no reason to take a loss and buy them at current value to punish the responsible tax payers. Buy and re-structure the mortgages for the amount owed. Houses will appreciate again. Homeowners getting a "bailout" shouldn't be selling or refinancing anytime soon anyway.

    October 8, 2008 02:19 pm at 2:19 pm |
  7. kalkrish

    OBAMA ALWAY SAYS HE S HAVING A PLAN AND ALSO SAYS HE WILL FIX BY DOING LIKE A LEADER,FOR JUST INFO.T FIX THIS CRISIS YOU NEED BRAIN OBAMA NOT JUST LEADERSHIP AND I FEEL OBAMA SHOULD KNOW THIS AND LET HIM SHOW HE HAVE KNOWLEDGE FIRST AND THEN SPEAK ABOUT THE LEADERSHIP.

    October 8, 2008 02:22 pm at 2:22 pm |
  8. John

    Now, people know if anything happened to Obama, who was the person bebind the door called 'kill him' – that is Palin.

    October 8, 2008 02:22 pm at 2:22 pm |
  9. Just a thought

    Just a thought – I wonder if this means that John McCain will be raising our taxes now. If this is the case maybe we won't have to listen to him say this about Obama over and over. "Obama is going to raise taxes. Where do you propose to get this money to cover these bad mortgages John?..............................hmm..... More of your Straight talk and Transparency down the toilet.

    October 8, 2008 02:22 pm at 2:22 pm |
  10. Jennifer

    Uh...and Fox isn't in the tank for the republicans? Get real. And by the way, CNN and MSNBC did text polls. Doesn't seem strange that 88% in their poll thought Mc Cain won?

    You and Faux News sure take yourselves seriously–then I gues you should because no one else on earth does.

    October 8, 2008 02:23 pm at 2:23 pm |
  11. CENSORED

    So how is this not a tax increase for responsible Americans? Didn't McSame say he wouldn't raise our taxes one single cent? I have to sacrifice a lot to pay my bills, it's called responsibility. Now I am asked to pay for someone else's irresponsibility? Great idea there John! If you haven't noticed, all of America is hurting. Didn't you say that in a recession the last thing you do is raise taxes?

    October 8, 2008 02:23 pm at 2:23 pm |
  12. Shari, NY

    Hillary supporters who are still in mourning: You got it real bad. Are you plannng to live in exile come Nov. 5?

    October 8, 2008 02:23 pm at 2:23 pm |
  13. Edna, MO

    Try again John, open up your goodie bag and give us a clue that you know what you're talking about.

    There's a reason Warren Buffet is talking to Barack.

    Obama/Biden 08

    October 8, 2008 02:24 pm at 2:24 pm |
  14. Jory

    McCain is acting like a spoiled rich brat.

    October 8, 2008 02:24 pm at 2:24 pm |
  15. You Decide

    John McCain and Sarah Palin Straight talk to NONE of the questions.

    October 8, 2008 02:24 pm at 2:24 pm |
  16. Kyle

    I have lost all respect for John McCain.

    October 8, 2008 02:25 pm at 2:25 pm |
  17. Chuck

    Republicans in the White House and Congress glorify free market principles as loan shark lenders forclose millions of homes, and now, Bush is giving 1 trillion borrowed taxpayer dollars to corrupt CEOs while claiming to be a patriot and Christian.

    Vote wisely - the Republican Party is controlled by business, and is waging war to make the U.S. Government of business, by business, and for business.

    October 8, 2008 02:25 pm at 2:25 pm |
  18. Jordan - San Marcos TX

    The McCain campaign continues to dig it's own grave, and the grave of it's party's last desperate attempt to keep it's hold on our political power structure.

    Time's up for the GOP. Our nation is ready for Obama to be President and more and more it needs Obama to be president.

    October 8, 2008 02:26 pm at 2:26 pm |
  19. Lip Stick Smear

    Is John McCain's campaign "ON" or "OFF" today?

    October 8, 2008 02:26 pm at 2:26 pm |
  20. dave g, minneapolis

    How can any of you Republicans honestly vote for McCain? He talks out of both sides of his mouth at the same time saying he'll have "spending freezes" and also get the government to "readjust" mortgages by buying them...

    From the Democrats, I expect bigger government and higher taxes.

    This is why I'm voting for Bob Barr, Libertarian. He IS against bailouts and bigger government.

    October 8, 2008 02:26 pm at 2:26 pm |
  21. ines

    Man............ Is this the best you got, McCain?!?!?

    Stop wasting your time and energy. You've already lost.

    October 8, 2008 02:26 pm at 2:26 pm |
  22. That ONE

    Why not throw in one of your 12 homes? McPa.

    October 8, 2008 02:27 pm at 2:27 pm |
  23. MDer for Obama

    I can thank John McCain for something! I am going to make a lot of money on my "I'm Voting for 'The one'" t-shirts. I will then donate as much as I legally can to the Obama campaign.

    October 8, 2008 02:28 pm at 2:28 pm |
  24. Al

    Candidates will say anything to get elected. Several months ago when the economy was not in such a mess, he said he, McCain, agrees with 90% of Bush's policies.Since 99% of Bush's policies have been failures, McCain's policies would be 89% wrong going forward. Do you want to elect someone who will be wrong 89% of the time?

    October 8, 2008 02:29 pm at 2:29 pm |
  25. aware

    McCain/Palin 08! :)

    Obamanomics would give America a "beyond belief" financial disaster! :(

    October 8, 2008 02:29 pm at 2:29 pm |
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