April 14th 2008 Obama vs. McCain Mortgage News Daily
It’s
very important to carefully look at what presidential hopefuls say about
mortgage policy. Pre poll promises
don’t always mean post poll performance but policies do give us insight into
candidate’s political souls.
This
brings us to the question about presidential hopefuls Barrack Obama and John
McCain’s take on the current mortgage crisis which would say a lot about the
kind of president each would be.
John
McCain clearly draws a sharp distinction between himself and the democrat
candidates, warning against vigorous government action to solve the deepening
mortgage crisis and market turmoil it has caused, saying
“ it is not the duty of
government to bail out and reward those who act irresponsibly, whether they are
big banks or small borrowers.”
Senator McCain more or less comes out against aid for troubled homeowners but
even more striking is McCain’s declaration that “our financial market approach
should include encouraging increased capital in financial institutions by
removing regulatory, accounting and tax impediments to raising capital.”
These days, even free-market enthusiasts are talking about increased regulation
of securities firms now that the Fed has shown that it will rush to their rescue
if they get into trouble but McCain is selling the same old story, claiming that
deregulation and tax cuts cure all ills.
On the other hand Obama is all for broader financial regulation, which might
help avert future crises. But his proposals for aid to the victims of the
current crisis, though significant, are less sweeping he wants to nudge private
lenders into restructuring mortgages rather than having the government simply
step in and get the job done.
Obama also continues to make permanent tax cuts — middle-class tax cuts, to be
sure — a centerpiece of his economic plan. It’s not clear how he would pay both
for these tax cuts and for initiatives like health care reform, so his tax-cut
promises raise questions about how determined he really is to pursue a strongly
progressive agenda.
All in all, the candidates’ position on the mortgage crisis tells the same tale
as their positions on health care: a tale that is seriously at odds with the way
they’re often portrayed.
Senator Obama is widely portrayed, as a transformational figure that will usher
in a new era but his actual policy proposals, though liberal, tend to be
cautious and relatively orthodox.
McCain, we’re told, is a straight-talking maverick but on domestic policy, he
offers neither straight talk nor originality; instead, he panders to right-wing
ideologues.
Do these policy comparisons really tell us what each candidate would be like as
president? Not necessarily — but they’re the best guide we have.
