Obama Vs. McCain On Housing (Thoughts?)
Today, I’m going to stir the pot a bit. And I’d love to have you chime in with your own comments on this.
If you’re watching the 2008 presidential race continue to take shape, you’ve probably heard of John McCain’s recent response to questions of whether or not the government should step in with relief for homeowners in danger of foreclosure…
“I have always been committed to the principle that it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers. …Government assistance to the banking system should be based solely on preventing systemic risk that would endanger the entire financial system and the economy.”
To which Barak Obama criticized that such an approach to the mortgage crisis would result in millions of people losing their homes, akin to the strategy the Bush administration has pursued the past eight years.
“It’s the idea that government has no role at all in solving the challenges facing working families — that all we can do is hand out tax breaks for the wealthiest few and let the chips fall where they may…”
So what McCain sees as a questionable bailout strategy, Obama sees as solving the challenges facing working families.
Obama proposes the creation of a fund to help distressed homeowners avoid foreclosure as well as a new mortgage tax credit. McCain says the government shouldn’t intervene to bail out banks and borrowers who made poor decisions. Actions have consequences.
But apparently McCain isn’t completely ruling out some kind of governmental assistance to help alleviate the housing crisis, as long as it’s temporary and includes reforms that aim to make the system more transparent and accountable to prevent a repeat of the crisis.
So…what do you think? I’d love to hear your comments below…
Technorati: mortgage crisis, Barak Obama, John McCain
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April 3rd, 2008 at 2:08 pm
No one seems to be addressing the fact that a self-employed person has no chance in hell of getting a loan anymore. No doc loans are in the past and I’m pretty sure that is not the culprit of this crisis to begin with. A credit score has been deemed useless in this mortgage market. Who is to say that the employed guy with bad credit but a pay stub will become next year’s un-employed guy with bad credit? I have actually had a lender say to me. “How do I know you will have a job next year?” My response was, “How do you know YOU will?”
April 21st, 2008 at 11:04 pm
I’m not sure what the right answer is but what I do know is that when the government bails everyone out, that money has to come from somewhere. I am taxed at 32% (after everything is said and done) and place a lot of money into the gov’s hands. 40%+ of America do not pays income taxes and those are the bulk of the foreclosures… not all, but the bulk. So who’s really bailing people out? Obama said he will NOT raise taxes and two sentences later said he would raise taxes in two different areas. So which is it Obama? More taxes or less? Who pays for the programs that will bail everyone out? I know where my vote is going and it isn’t Obama. McCain isn’t much better but the best choice on the ballet.