After donning his armor, mounting his white horse, and riding to the rescue of the bailout plan two weeks ago, only to be ignored by everyone in WDC much to his chagrin, not to mention an immediate loss of 8+- points in the prezy polls, he last night proposed an alternative bailout plan which a number of economists have called the stupidest thing they have every heard of. (Ahh, they all think they are Bill Gates). Here is Robert Reich today:
It does make sense to help homeowners directly, as Barack Obama has said. But John McCain last night came up with the stupidest plan I've heard yet for doing so. He wants the government to buy mortgages from the banks at face value and then write down the principal for homeowners. This would be the biggest handout yet to the financial industry. Taxpayers would take all the losses, including the downside risks of additional defaults if houses drop further in value, while the banks would get off scott free.