I guess we should have a good dose of nonsense first thing in the morning so we can get it over with. From presidential hopeful John McCain this morning:
Republican presidential candidate John McCain told CNBC that the government’s top priority in the financial crisis should be on buying bad mortgages to keep Americans in their homes.
"The administration is not doing what I think they should do, and that’s go in and buy out these bad mortgages, give people mortgages they can afford, stabilize home values and start them back up again," McCain said in a live interview with his vice presidential running mate, Sarah Palin.
if you gave your proposal more than a moment’s thought, you would realize that the problem isn’t "bad mortgages" it’s "unaffordable mortgages". People can’t pay their mortgages [or won’t] because they owe too much. When the market is allowed to function as it should, prices will fall to a level where people can reasonably afford these homes again. Why would you want to "stabilize home values and start them back up again" [Not that your plan would work – too much of the inventory is bad investments, not owner-occupied homes] so prices were at unaffordable levels once more?
Not only that, why does the taxpayer need more bad investments in the government portfolio? "Good money after bad" is a lousy investment strategy. I don’t know where you are getting your real estate investment advice, but please, give them back their money and tell them to lobby someone else.