McCain pushes $300 billion mortgage plan (Reuters)
09.10.2008 00:50 Finance
The morning after a sometimes tense second presidential debate, the ailing economy once again took center stage in the White House contest, even as a cut in global interest rates failed to stop the continuing tumult on Wall Street.
Two snap polls judged Obama the winner of the Nashville, Tennessee, debate on Tuesday night. That suggested that McCain, a Republican, could be running out of chances to recast the November 4 race, which has been trending toward his Democratic opponent.
McCain on Wednesday offered more details on a plan he suggested in Nashville to have the government to buy up troubled loans from homeowners who have seen values fall below their debt. The loans would then be structured into more affordable mortgages.
"Under my orders as president, the secretary of the Treasury will carry out a home ownership resurgence plan," McCain told a rally in Bethlehem, Pennsylvania. "The dream of owning a home should not be crushed under the weight of bad mortgages."
The Arizona senator called the plan a "a critical first step our country must take to get through this time of crisis."
But the Obama campaign dismissed the idea "more costly and out-of-touch than we ever imagined" and noted that the Treasury already has authority under a $700 billion rescue plan approved by Congress to buy up distressed debt.
"John McCain wants the government to massively overpay for mortgages in a plan that would guarantee taxpayers lose money, and put them at risk of losing even more if home values don't recover," Obama campaign economic policy director Jason Furman said.
Obama, an Illinois senator, has sought to portray McCain as an erratic leader in the financial crisis. Democrats sharply criticized McCain last month when he offered to suspend his campaign to try to help lawmakers reach a deal on the bailout package.
McCain's critics suggested his move hindered, rather than helped, the talks.
"TIME FOR RESOLVE"
"This is a time for resolve and steady leadership," Obama told an outdoor rally at a mud-soaked fairgrounds in Indianapolis.
Obama also accused McCain of offering the policies of President George W. Bush "that led us into this mess in the first place."
But McCain's running mate, Sarah Palin, said Obama's efforts to tie McCain to Bush were "starting to wear pretty darn thin."
"Last night Sen. McCain talked about real and pragmatic solutions. Barack Obama talked about why he'd rather run against George Bush," Palin, the Alaska governor, said as she appeared with McCain at the Bethlehem rally.
Polls show voters favor Obama on economic issues, giving him a lead between four and nine percentage points in national surveys released in the past few days.
A Reuters/C-SPAN/Zogby poll of likely voters released on Wednesday showed Obama with a 47 percent to 45 percent edge on McCain, down one point overnight and within the poll's margin of error of 2.8 percentage points.
Other polls have shown a larger advantage for Obama, who has made gains nationally and in key battleground states during the economic crisis.
Both candidates applauded the U.S. Federal Reserve's cut of a key lending rate by a half percentage point in a coordinated effort with central banks around the world.
During the debate, the candidates showed only occasional flashes of the personal rancor that has marked their recent campaign-trail rhetoric.
Obama's campaign took note of McCain's reference to Obama during the debate as "that one," but Democratic vice presidential nomineeJoe Biden said he did not believe McCain was being dismissive.
Biden, a Delaware senator, told ABC's "Good Morning America" that it suggested McCain was "ill-at-ease" with the attack strategy his campaign has undertaken.
With only four weeks to go until the election, the two candidates will meet for one final debate on October 15.
(Additional reporting by Caren Bohan in Indianapolis and John Whitesides in Nashville; Writing by Caren Bohan; editing by David Alexander and David Wiessler)
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