McCAIN’S RESCUE PLAN….It’s now clear that John McCain’s $300 billion homeowner rescue plan really does envision paying mortgage lenders full face value for their subprime loans, even though they’ve all cratered badly during the housing bust. How do we know? Because his website originally said that mortgage lenders would be required to write down their loans, but that language was removed on Wednesday. It was “a simple mistake,” the campaign said.
But here’s what I don’t get: why? This was plainly a middle class pander, and not one that McCain would have been obligated to follow through on. This kind of stuff changes at the detail level all the time. So why include such a blatant giveaway for Wall Street? Even if you have some technical reason for thinking it’s a good idea, it doesn’t make any political sense at all. What’s going on?