McCain made what he claimed was a new proposal to rescue over-mortgaged homeowners:
McCain: As president of the United States. … I would order the secretary of the treasury to immediately buy up the bad home loan mortgages in America and renegotiate at the new value of those homes – at the diminished value of those homes and let people be able to make those – be able to make those payments and stay in their homes.
McCain added: “It’s my proposal, it’s not Sen. Obama’s proposal, it’s not President Bush’s proposal. But I know how to get America working again…”
But in fact, the recently passed $700 billion rescue package already grants the treasury secretary authority to undertake just such a program. It requires the secretary to buy up troubled mortgages while taking into consideration “the need to help families keep their homes and to stabilize communities.” It also says “the Secretary shall consent, where appropriate (to) loss mitigation measures, including term extensions, rate reductions (or) principal write downs.”
This pisses me off…why is it necessary for taxpayers to end up paying for the bad decisions of lenders, banks, and people who chose to buy homes that were beyond their means? Yes, it is a sad thing that people will lose their homes, but they should never have been allowed or encouraged to buy those homes in the first place. If they can’t afford them they should sell them and move to a place they can’t afford. If the value of the home has decreased, again – it’s sad that they’re losing all that money, but that is a consequence of the bad decision they made in purchasing something that was completely outside of their means. Yes, they may have been encouraged to do so, but I expect people to think for themselves and make informed decisions/purchases.
It pisses me off that the government is going to take on the debt of people who’ve made mistakes and now I’m going to end up having to contribute to paying off that debt. That’s not right.