03-25-08

McCain has suggested that he will not be interested in helping banks or borrowers he considers to be irresponsible. But did leave the door open saying he would consider proposals and that GOP dogma should not be an issue. Suggesting that the blame for the housing market rests with the borrowers who where deceived when they obtained their current mortgage that is causing them hardship. Democrats fired back stating that he does not have the skills needed to be President and that this hands off approach is what got us into such a mess with the leadership of Bush and his policy of distancing the economy from the government.

In contrast Senator Clinton proposed several plans to help homeowners keep their homes and allow for credit protection to the banks from the investors. Democratic plans also include a proposal called Help Now where the government – the FHA, will purchase troubled mortgages from banks at a discount. The government would then refinance this mortgage at a lower principle and lower rate giving the borrower a much lower payment and offering a real solution to the housing crisis.

McCain concluded by saying that if it was unavoidable that the government get involved with the current housing market it would be brief and temporary.