Thursday, October 09, 2008

McCain -- Claims he will cut spending but than proposes to buy mortgages in order to write down over-valued mortgages

John McCain has derided Obama, and Democrats in general, as big spenders. However, no doubt in an attempt to seems like a friend to the middle-class, John McCain has just suggested that the Federal government buy $300B in over-valued mortgages in order to refinance and write-down those mortgages at current home values. Although I agree that under-valued homes is a great problem, (one that I actually face) I absolutely do not desire to see the Federal government buy 300B of mortgage receivables only to write off a meaty chunk of those receivables at the cost of the US taxpayers.

The reasons why this is bad policy are numerous. The biggest problem is that this proposal strongly contradicts John McCain's claims that he will keep US spending down. With this proposal John McCain (before being elected President) has taken national debt which has topped $10T, and slingshot it closer to $11T. People whose home values have declined, is a difficult problem. However, more government intervention is not the answer and the fact the he has suggested this certainly impeaches his conservative credentials.

There are many ideas that I would find much less objectionable and costly. For instance offering certain incentives to lenders who write down loans could be a positive means of helping out owners of devalued real estate - tax credits, consequences for home-owners that default on principle-decreased mortgages, or some sort of insurance on written-down mortgages that default might work.

I continue to be disappointed in John McCain, and his campaign. Evidenced by his continued use of negative campaigning, he seems to have few logical plans that will improve and lead our country. Unfortunately, I don't really see that Barack Obama is the great hope that he would like us to see. Obama has had many questionable social and political connections (not ignoring McCain and the Keating 5) he is highly inexperienced in political leadership, and I have no doubt that he will lead our government into several renewed Johnson-era war on poverty programs. However, of the two candidates Barack Obama seems like he is the most in-tune with the issues and the more likely of the two to come up with logical solutions to issues that we may face. I have little faith in either of the two. Due to that fact that neither of them would be making important decisions without their cabinet, it might be helpful if both of them made there cabinet nominations -- it would be easier to choose one of them if Warren Buffet had accepted a Treasury Secretary nomination.

Is Ron Paul still running?

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