If you watched Tuesday night's debate, a question was posed to the candidates about how the bailout package would impact taxpayers. Because I'm a dork, I was actually attempting to transcribe the debate as it was happening. Anyway, here's what I managed to peck out during McCain's response:
How is the bailout package going to help people?
I was so stunned at his level of condescension that I quit typing for a minute. And he didn't leave or suspend his campaign - 1300 campaign ads ran during his so-called suspension and all of his campaign locations were running business as usual (liar, liar drama queen).
Anyway... the buying up of bad loans is already a part of the bailout package so I think that comment sort of blew over without much thought. Until some folks decided to delve in a bit deeper to find out what he actually meant by buying up the bad loans.
According to Jared Bernstein and Gene Sperling:
But today we learned of a detail that makes his [McCain's] plan significantly different -- and much worse. The McCain plan uses taxpayer dollars to buy distressed mortgages at their full, face value from the banks and lending institutions that are currently stuck with them. Only then, after we the taxpayers have fully absorbed the cost to the lender of these troubled loans, does the homeowner get the benefit of the lower principal.
That's right folks...it's private profits and social losses. Instead of an effort to safeguard taxpayers as Senator Obama has called for and the Frank-Dodd bill goes to great lengths to do, this [McCain] plan takes from taxpayers to provide unjustifiable subsidies to financial institutions - even those who engaged in deceptive or outright fraudulent practices to induce people into homes they could not afford.
I'd encourage you to read that second paragraph again. And again, if necessary.
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