About the candidates on the issues:
Barack Obama has a detailed and specific
housing plan. This includes:
Ban mortgage fraud, including liar loans, and jail mortgage brokers who produce fraudulent loan documents.
Put primary residence mortgage loans on the same footing as apartment, investment, second residence, and auto loans in bankruptcy court.
Mandating full disclosure of loan terms, including
maximum payments and
maximum balances (i.e., goodbye teaser traps and neg-am).
He's also proposing a 10 billion dollar program for mortgage counseling and refinancing support, which I do
not like (well, the counseling is OK) but in view of the fact that he's zeroed in on the things that really need to be fixed in the mortgage market, I can live with it. Also, see below on Hillary.
Hillary Clinton also has a plan with
teeth and specifics albeit less than Obama's, but I think she is not addressing the real problems. She proposes:
A 90 day foreclosure freeze.
A 5 year rate freeze on subprime ARMs (and maybe all ARMs).
Reporting of workout attempts.
5 billion in distressed homeowner assistance (i.e., disguised bank subsidies, as we know).
Hillary is treating problems, not causes. She does nothing to prevent this from happening again, and in particular does nothing to prevent the rampant fraud which is the biggest part of this mess. I also think a blanket foreclosure freeze would be a minor disaster.
John McCain has, as I've said,
nothing on the housing problem. Liar loans? Crooked brokers? Slanted bankruptcy laws? No prob! He does have a small, limited economic plan, which consists of
nothing but corporate tax breaks. Literally nothing else, just several substantial tax cuts for corporations. I am not
making this up.
The candidates' approaches are extreme, but illustratory versions of their general attitude. Obama tries to fix the cause of a problem. Hillary tries to fix the symptoms of a problem. McCain tries to pretend there is no problem.
In terms of the nonsense of Obama being vague or faith-based, check out his issues pages and advisors. Quite the opposite: Obama is downright wonky, with a knack for being out front on issues like nuclear proliferation, bird flu, mortgage fraud, and government transparency. He gets his proposals through his extensive academic contacts at Harvard and the University of Chicago. He's also famous for talking to all sides, including people he has major disagreements with.