McCain and GOP Pals' One-Page Plan To Save His Campaign ... er, the Economy
The SEVEN HUNDRED BILLION DOLLAR bailout deal is cratering? No worries mate. Conservative Republican Superheroes in Congress have a new improved plan to solve all our financial woes. And I'll just bet you can't guess what they propose to do to save the day. Okay, you're right. I'd lose that bet.
A group of conservative Republicans in the House on Thursday proposed a financial rescue package of tax breaks and a new government-sponsored insurance program for mortgage-backed securities as an alternative to President Bush's proposed $700 billion bailout of Wall Street.
Instead of the government buying the toxic mortgage securities, banks, financial firms and other investors holding them would pay premiums to the Treasury to finance the insurance coverage. [...]
The GOP plan, said House Financial Services Committee Chairman Barney Frank, D-Mass., is "a mortgage insurance approach that Secretary Paulson said does not work." [...]
Robert Litan, an expert on banking and finance at the Brookings Institution, called the framework unworkable, saying it would not achieve the basic goal of creating a market - and establishing prices - for mortgage securities no one's willing to buy.
"Everything depends on how you value the security," Litan said. "If you do the deposit insurance scheme, there's nobody out there to know what the right price is."
Their plan also includes "temporary tax cuts and regulatory relief for businesses" Which has worked so well in the past to fix our economy. Not.
And guess who's behind this ludicrous alternative plan as a means of sabotaging the negotiations between Congress and the President? Can you say Johnny "POW" McCain? I knew you could: