McCain: 'New Money' Might Fund $300 Billion Mortgage Plan

[maddezmom]

Source: ABC

ABC News' Teddy Davis and Arnab Datta Report: John McCain's $300 billion mortgage buy-up plan may require new funds, according to a Thursday interview the Arizona senator gave to ABC News' Charles Gibson.

Asked if his mortgage plan would be "new money or part of the $700 billion" already appropriated by Congress for the Wall Street bailout, McCain said, "part of the $700 billion, new money, if necessary."

"Look," he continued, "in one day they wiped out $1.2 trillion when it dropped 700 points. And I'm not throwing this money around lightly. But if the housing values continue to go down, there's no floor. There's no turnaround here. We all know what was the catalyst for this catastrophe. And that was Fannie and Freddie."

The Obama campaign reacted to the Gibson-McCain interview by charging that the Arizona senator's plan "just keeps getting worse."



Read more: http://blogs.abcnews.com/politicalradar/2008/10/mccain-new-mone.html

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here it is:

http://www.youtube.com/watch?v=1-OEhtufO4w

Douglas Holtz-Eakin and Nora O'Donnell on John McCain
"MSNBC Live" 3:33pm
Interview

TRANSCRIPTION
DOUGLAS HOLTZ-EAKIN: not costing the taxpayers more money. The congress has already put on the table $700B to help financial institutions. In an earlier bill $300B for the FHA to guarantee mortgages. All Senator McCain is saying, 'Look, if we're gonna commit that kind of money from the taxpayers, let's target it to the people who need some help <...>.'

NORA O'DONNELL: ow can you claim that this kind of plan has absolutely no price tag? What you're proposing is that the government absorb the full cost of renegotiating essentially these mortgages so that a borrower doesn't end up losing their home. Somebody's gotta pay for it.

HOLTZ-EAKIN: We've already committed to paying. <...>

O'DONNELL: ho are you talking about, 'We've already committed to spending the money'? Who?

HOLTZ-EAKIN: The Congress of the United States passed, the president signed a bailout bill with $700B in it. <...>

DHE2 JM MSNBC 10-09-08 15.33 (JR#528)

[whistle]

1. So that one (John McCain) will raise everyone's taxes

[BootinUp]

2. The floor is set by wages + available credit. and lending standards

This idea that the housing market prices should be propped up artificially is not a good one.

[Roland99]

3. Poor, sad, McLame. Still blaming Freddie/Fannie for all this and not the unregulated, overleveraged

financial institutions and their MBSs and derivatives and ....

[xxqqqzme]

8. My first thought as well.

'...But if the housing values continue to go down, there's no floor...' Just like the feeding frenzy that over valued housing. There is a ceiling and there is a floor.

[whistle]

4. Ask John McCain how he plans to cover the quadrillion dollar derivatives obligations

...now on the books of the World's Central Banks? That's right quadrillions of dollars, that 10 followed by 15 zeros times whatever dollar outstanding multiple there is which no accountant and CEO wants to disclose.

[yellowcanine]

5. "new money" as in newly printed money?

[last1standing]

6. "New money" means either more taxes or more printing.

Mcsame is the one who keeps saying that raising taxes in a recession is dangerous and we all know that printing more money, especially $300 billion, would lead to hyper-inflation. This means that either way, mcsame is going to tank our economy and completely wipe out the middle class. This is an incredibly dangerous man who's willing to do ANYTHING to gain power.

[noonwitch]

7. Hey, if I win the Lotto tonight, I'll buy some stock on Monday!

Ford stock, which is going cheap right now. I have faith that Ford will eventually rebound outof their mess. Mullaley has made some good decisions-increase production of the Focus, decrease SUV production, and return the Taurus, a popular and safe family car.