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Bipartisan consensus on HOLC


Nice catch, BTD

Well, bipartisan except for Obama.

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vastleft's picture
Submitted by vastleft on

McCain basically called for a version of a new HOLC, with the government stepping in to buy up failing mortgages and work them out with struggling homeowners. This is completely at odds with his record, and I'd like to see him explain it to fiscal conservatives. Also, why now and not during the bailout negotiations?... late update: the bailout bill already has this option, though it's completely at the discretion of the Treasury Department.

I'm not sure which of these "read-the-website" documents (found at the latter link) is germane, but perhaps there's something worth digging for. I'm not expecting to find a pony in there but YMMV.

Submitted by lambert on

That's because it was written under the extremely Constitutional Theory Of We Get To Do Whatever The Fuck We Want. I poked through that page, and if there's a link, I don't see it.

The issue, however, is not whether it's in the bailout bill, but whether Obama supports the policy.

UPDATE Here's the link, buried under the headline McCain Plan Not New. Pretty weak -- three quotes: It's in the bail, Obama supports it, and Obama wants to study it. Case of the kettle.

Obviously, if he does support it, he missed a huge opportunity to say so in the debate and achieve bipartisan consensus...

[ ] Very tepidly voting for Obama [ ] ?????. [ ] Any mullah-sucking billionaire-teabagging torture-loving pus-encrusted spawn of Cthulhu, bless his (R) heart.

elixir's picture
Submitted by elixir on

As so deftly displayed in another comment by one of Corrente's many brilliant posters. The many gates (or was it fences?) in this comment from the same article on BOs site:

“Encourage (1) Treasury To Study (2) The Option (3) Of Buying Individual Mortgages.”

I love this job!

inna's picture
Submitted by inna on

i am stunned and not quite sure what to think -
all of a sudden McCain positions himself to the LEFT of congressional Dems on this one.

lots of interesting details here:

surprisingly, the McCain campaign properly credits this idea:

"The mortgage renewal idea actually originated with Senator Hillary Rodham Clinton, said Charlie Black, a senior adviser to Mr. McCain. And Mrs. Clinton, who proposed the idea in a recent newspaper column, borrowed it from a Depression-era New Deal agency, the Home Owner’s Loan Corporation."

jjmtacoma's picture
Submitted by jjmtacoma on

Over at TL they were concerned that McCain didn't credit Clinton.

Rachel Maddow thought McCain's base would freak out about HOLC, I'm sure she will LOVE to hear them credit Clinton.

I will say, this is exactly the pander I was looking for. Too bad the Dems didn't do it, eh?

Submitted by jawbone on

This blog, Deal Journal, by a writer I'm not familiar with, Heidi N. Moore, indicates this is more in line with plans proposed by others, including Hillary Clinton*. And gets to the problem more directly than the Paulson Fix Is In. At less than half the price, albeit that might increase.

... It is actually the plan that has been proposed before — and pitched again twice in the past week — by professors Glenn Hubbard and Chris Mayer of Columbia University and Marty Feldstein at Harvard University. It is also something like the plan proposed by Rep. Barney Frank and Senator Chris Dodd in March to auction off mortgages and allow them to be refinanced by the Federal Housing Administration. The Frank-Dodd legislation would have given the FHA $20 billion to buy and refinance up to $300 billion of mortgages. It was supported by New York Senator Hillary Clinton during her guarantee primary campaign for the Democratic presidential nomination.

Everyone who has proposed the mortgage plan supports it because they believe that the $700 billion rescue passed by Congress last week won’t go far enough to stem the economic crisis. Why is the mortgage plan necessary if we have a $700 billion bailout already in place? Deal Journal takes a look.

Click through to read the deets on the plans and how they would work and how they differ from the Paulson Fix. Links there as well.

*Interestingly, this post does not mention Hillary's more recent and clear proposals for a 21st Century HOLC, just her support of the Congressional plan in March.

Also, interestingly, on WNYC this morning, Brian Lehrer and WNYC's political reporter both were essentially guessing at details (not waiting for the McCain campaign to provide them) and coming to the conclusion that it was what Obama said (Think the MCM takes the Obama campaign's spin really seriously?), the same as the Paulson Fix. No mention of Clinton, altho' she is the junior senator from NY.

PO'd this listener.

When the MCM decides someone is no longer worth covering, it seeps right down to the local level, it appears.

Submitted by jawbone on

Amazing and pretty rare for a pol. Inna, thanks for the link and the quote.

Of course, it may be a good political move as well, since McCain wants those Hillary voters really, really, really a lot.

But, damn, outflanking the Dems on their left!

One would think Obama would do something similar, especially since they're in the same political party.

Oh, yeah--The One is beyond party identificaion. The One is singular, the only One.

Valhalla's picture
Submitted by Valhalla on

That's what I've never understood, except as psychological bottle-feeding for Wall St and its confidence deficit. How I hate to be held hostage to whatever twisty inner machinations of the minds of the big players in this stupid psychodrama.

Yesterday The Fed announced it would buy up short-term loans to break the 'paralysis' on credit markets, which it evidently had the power to do all along, when the bailout news didn't do anything to help investor confidence and the stock market continued to plunge.

If we could have HOLC to stabilize the assets underlying the 'securitized' mortgages, and the Fed's power to bust up (one hopes) the short-term credit crunch, then why would we need to throw a trillion bucks at The Masters of the Universe, except for kicks and giggles (or making sure our pals made out before the cupboard went bare)? I obviously just don't get how all this works.

Smart move by McCain btw, since Republican rank-and-filers own 'troubled' mortgages too, on homes I'm sure they'd prefer to stay in, core anti-liberal ideology be damned.