Economy

McCain Does About-Face On Housing Rescue Bill

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CREDIT:

Our guest blogger is James Kvaal, Domestic Policy Advisor at the Center for American Progress Action Fund.

mccainThat was fast.

Only days ago, McCain advisor Douglas Holtz-Eakin dismissed Sen. Chris Dodd and Rep. Barney Frank’s mortgage rescue plan – also endorsed by Sens. Clinton and Obama — as “throwing money at problems.” He said it had “the potential to do more harm than good.” Meanwhile, Sen. McCain gave a major housing speech in which he “more or less came out against aid for troubled homeowners” and his hands-off approach drew comparisons to Herbert Hoover.

That’s all changed. Yesterday, the Senate voted 94-1 to move ahead with a housing rescue bill, and now McCain’s for it too. Last night Holtz-Eakin called the Senate action “progress.” And today he said that the Dodd-Frank proposal reflected McCain’s principles and McCain may support it.

For homeowners, it’s a welcome about-face.