I would have just cross-posted what I wrote yesterday on BMG, but I think it’s interesting to see the reaction there.
Please read my post and David’s response. Is this a complete non-sequitor or what? I thought for sure the Obama supporters would come back with some detailed plan to point to. Instead, nothing. And this isn’t the first time I’ve posted this. See the comments here.
I don’t think Obama has a plan except to stifle all media coverage of McCain’s proposal. Seeing as the use of those $700B will be at the discretion of the treasury secretary, doesn’t the American public deserve to know how the candidates would direct this appointee?
McCain’s plan is no so dissimilar to a proposal Governor Patrick made about a year ago. Remember he wanted to renegotiate mortgage terms of people facing foreclosure who could afford to stay in their homes if they simply got the prime rate?
The difference is, Patrick didn’t have any funding. I think he talked about using the interest received from another agency. Regardless. McCain would have $700B already appropriated for this program. It makes sense.
When McCain first mentioned this in the debate, I balked. It seemed like socialism. But after I learned the details and thought about it more, the more I liked it.
We don’t know exactly what we need to do to fix the mess we’re in. I would rather our first step be with fixing the foundation. If that isn’t enough, then we inject more capital into the banks. The effects of a McCain plan may not be as quick as buying equity, but we don’t need a quick fix. We need something that works for the long term.