07.01.2008 0

Where Have the Free Market Advocates Gone?

  • On: 07/20/2008 16:33:49
  • In: Economy
  • Just when you thought Senator John McCain (R-AZ) had turned over a new leaf in allowing the free market to sort itself through the foreclosure crisis, ALG News was reminded to take what the presumptive Republican nominee says with a grain of salt.

    Striking a decidedly different note
    from his initial opposition to a foreclosure bailout, John McCain’s campaign has changed its tune, proposing anywhere from $3 billion to $10 billion in aid to help 200,000 to 400,000 “deserving homeowners who are facing foreclosure” refinance their mortgages at lower rates:

    “[My plan] offers every deserving American family or homeowner the opportunity to trade a burdensome mortgage for a manageable loan that reflects the market value of their home. This plan is focused on people. People decide if they need help, they apply for assistance and if approved the government under my HOME Program supports them in getting a new mortgage that they can afford. There will be qualifications which require the home to be a primary residence and the borrower able to afford a new mortgage. We will combine the power of government and the private sector to find immediate solutions for deserving American homeowners.”

    As Larry Kudlow noted on Kudlow & Company on April 10th, if it looks like a bailout, smells like a bailout, sounds like a bailout: it’s a bailout. Just not as a big a bailout as what the Democrats want.

    To paraphrase Harry Truman, given the choice between a Democrat and someone who acts like a Democrat, people will probably vote for the real Democrat.

    As of now, the American people get to choose between Congress’ $21.6 billion “Foreclosure Prevention Act” which has passed the Senate 84-12, McCain’s $3-10 billion refinancing proposal, and the administration’s own plan, “FHA Secure” which on paper would not cost any additional tax dollars (though it should be noted that the FHA is going bankrupt on its own accord and will probably be looking for its own bailout).

    McCain was not present to vote for or against the bill which passed the Senate, but true to form, he would have voted for it:

    “A spokeswoman for the presumptive Republican presidential nominee, Sen. John McCain of Arizona, said the senator opposed the tax break for home builders but would have voted for the bill had he not been on the campaign trail.”

    ALG News wonders if there will be any defender of free markets on the campaign trail this year. It’s not John McCain.

    ALG Perspective:
    The only person who stands a chance at stopping the Great Government Giveaway is President Bush. While he has no control over what Senator McCain does on the campaign trail, the President does have the power to veto this legislation. These sorts of election-year giveaways need to come to an end. McCain has said he would as president veto excessive spending bills when he was running against his opponents in the Republican primaries, but when given an opportunity to vote against such legislation, he has failed miserably. The Senate’s passage of this bill is disappointing, but McCain’s stand on this issue is beyond disappointment. It’s revealing and why shows many are still so skeptical of a McCain Presidency.

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