McCain proposal could mean less money for banks

October 09, 2008 11:26AM

Senator
John McCain’s $300 billion proposal to help homeowners struggling with
mortgage
debt has potential benefits for the troubled real estate sector, but
could also
reduce the funds available for rescuing banks. The plan focuses on
using the
government’s rescue funds to buy individual mortgages from homeowners,
which
could also benefit real estate investors and predatory mortgage
lenders. Advisors to the Republican presidential candidate say the plan
wouldn’t require new legislation and would be less
costly than buying mortgage-related securities, as the recently passed
$700
billion bailout plans to do.


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