Politics

A bad idea.

So far in this blog, I’ve left political commentary out, except on its periphery. However, Senator McCain’s proposal is so bad that I’m making an exception.

There’s bailout and then there’s give-away.
What the Treasury proposed that is going through its start-up stage, although not ideal, at least has the concept that gives the taxpayer the potential of the situation being neutral with its worst-case scenario. The McCain proposal doesn’t. As opposed to the Treasury plan, under which the mortgages are purchased as a severe discount, his plan is to buy them at face value. That amounts to putting all of the risk on the taxpayers’ backs and essentially rewarding lenders for bad decisions.