Political Buzz

Hard to imagine typing out the above header, but there it is…

Finally caving to campaign advisers who sens a clear opportunity to head-off potential trouble spots while the Democrats are pulling each other’s hair out, McCain grudgingly agreed to a speech today laying out some retooled policy proposals that address the economic and housing crises affecting the nation as we speak.

McCain had been seen as cemented in his previous viewpoint on the issue - which was basically an “on your own” strategy for housing, etc. that was unbelievably popular with the fiscal/media conservative crowd but was seen as callous and aloof (or even a sign of senility) by the mainstream press, most swing voters and his own campaign team. Rick Davis and Co. knew that JMac’s hands-off take on the economy wasn’t going to fly now that he’s past the GOP primary and all of the Reagan worship and the like. Moderates and swing voters weren’t buying it, and they felt that a drastic change was needed.

Credit the team for turning the notably stubborn McCain around and getting him to lay out his new proposals in a speech earlier today. It’s a basic 180* from his first take.

Two weeks after drawing criticism for saying he favored only a limited federal role to help deal with the home mortgage crisis, Republican presidential candidate John McCain sought to assure Americans he is prepared to use the government where necessary to help ease the impact of a declining economy on working families.

In a campaign appearance with small business owners in Brooklyn, McCain also addressed the spreading economic downturn with proposals to help families facing foreclosure restructure their mortgages and to give workers who have lost their jobs more flexibility and incentives to seek retraining and a speedier return to the workforce.

McCain plans a more comprehensive economic speech for next week, but came here today to blunt criticism from Democratic rivals Barack Obama and Hillary Clinton that he is insensitive to the plight of ordinary Americans.

“Let me make it clear that that in these challenging times, I am committed to using all the resources of this government and great nation to create opportunity and make sure that every deserving American has a good job and can achieve their American dream,” he said.

Lots of mortgage assistance and bailouts (well, lots for a conservative pol) are the centerpiece of the plan, with unemployment assistance even getting some attention.

The language and labels used to describe JMac’s plan are eerily similar to the plans of liberals like Obama and Hillary. What’s up with that?

McCain, an Arizona senator who has wrapped up his party’s nomination to run for the White House in the November election, will propose a system that allows struggling homeowners to “trade a burdensome mortgage for a manageable loan that reflects the market value of their home,” according to excerpts of the speech seen by Reuters.

“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,” he says.

The houses involved will have to be people’s primary residence and eligibility will require that they be able to afford new mortgages, he says.

The program would result in homeowners having a 30-year mortgage and an equity stake in their home, while the new lender would receive a federal guarantee of the mortgage.

He also pushes for a program that would use taxes to help people who are unemployed.

“I propose that we build a new system so that as women and men work, their taxes help to build up a buffer account against lost earnings,” he says.

“Then, if they are unfortunate enough to lose a job, they will be able to better meet their obligations.”

This goes far beyond anything McCain had outlined previously or had been expected to propose, but his potential Dem rivals were still scoffing. Hillary issued a statement even before JMac’s actual speech that poked some holes in the plan and gave it a general drubbing.

Senator McCain is apparently of two minds on the housing crisis and neither seems to know how to steward the economy effectively. Just two weeks ago, Senator McCain said he’d rather do nothing than something about the housing crisis and attacked my plan with tired right-wing talking points.

Today, it looks like he’s proposing a warmed over, half-hearted version of the very plan he criticized, to help families restructure mortgages to save homes and keep housing prices from falling further. Apparently, Senator McCain got the message: letting the phone simply ring and ring is not the way to respond to economic crises. So now he’s changed positions and is finally responding to a housing crisis that has been going on for months, but unfortunately his actions are only half-measures.

This is all part of a pattern.

Senator McCain admitted not knowing enough about economics. He can’t keep his own position on Social Security straight. And now he’s shown himself to be dangerously inconsistent on addressing our nation’s housing crisis.

McCain: Ushering in programs with acronyms like HOME to bail out homeowners… Pushing assistance programs that will cost $3 to 10 billion… Apparently caving in to political realities and moderate tendencies…

The conservative crowd, who just started warming up to their nominee and who had always been enamored with his tough-as-nails economic stands, feels betrayed and disgusted. Will that continue? If it does, it’s a real problem.

Sphere: Related Content

Filed under: Economy, Republicans, John McCain, Hillary Clinton, The Blog