Do They Have a Plan?

With talks and negotiations falling apart, many insiders are wondering just in the Presidential candidates acutally have a plan.

By: James R. Lindamood It seems that in recent weeks the American public has been talking less about finance and housing, and more about our Vice Presidential nominees. It's strange, though, when you consider that the finances of most American's haven't improved at all in the last year. Between Fannie and Freddie both narrowly escaping a total meltdown and cities in the west with huge forclosure, the Mortgage Bankers Association has reported that there are 1.2 million homes in foreclosure right now. That's double the amount from this time in 2007. While the economy is still strong, it is faltering, and the housing industry is a major part of it. Presidential hopefuls Senator Barack Obama and Senator John McCain have both issued statements that they are in favor of government intervention in the cases of Freddie and Fannie, given that thier primary mission is to ensure loans made to citizens, boosting home-buying in the middle-class, traditionally the largest in the country. Douglas Holtz-Eakin, Senator McCain's economic advisor, says that while the Arizona senator favors the plan put forth by the Treasury Secretary, McCain wants to see the companies privatized once the crisis is over. Senator Obama prefers a more bookish solution; creating a standardized system by which to compare mortgage products in the U.S. While both candidates support the fight against predatory lending, and promise criminal penalties for companies that use those tactics, they do differ on some specifics. One major difference between the two is that Senator McCain prefers to take a stand against the government purchasing distressed homes. Senator Obama wants to expand legislation that would allow the government to buy distressed properties in danger of foreclosure.