The only seeming new item from John McCain was the seeming populist call for providing greater assistance directly to folks having mortgage problems.

The truth is that this is not a new proposal and is already part of the rescue plan that was signed into law. It was Obama, not McCain who called for this move two weeks ago.

Obama may not have come back strong enough on this during the actual debate, but the fact are:

1. A provision for this is already in the bail-out package:

Rescue bill includes authority for the Treasury Department to buy “residential or commercial mortgages. ” [Emergency Economic Stabilization Act of 2008, Public Law No: 110-343, 10/3/08]

2. Obama called for this weeks ago:

Obama Said “We Should Consider Giving The Government The Authority To Purchase Mortgages Directly Instead Of Simply Purchasing Mortgage-Backed Securities.”  Obama said, “For example, we should consider giving the government the authority to purchase mortgages directly instead of simply purchasing mortgage- backed securities. In the past, such an approach has allowed taxpayers to profit as the housing market recovered. This is not simply a question of looking out for homeowners; it’s doubtful that the economy as a whole can recover without the restoration of our housing sector, including a rebound in the home values that have suffered dramatically in recent months.” [Press Conference, 9/24/08]

Obama Said He Would “Encourage Treasury To Study The Option Of Buying Individual Mortgages.”  Obama said, “We also must do more than this rescue package does to help homeowners stay in their homes. I will continue to advocate bankruptcy reforms to help families stay in their homes and encourage Treasury to study the option of buying individual mortgages like we did successfully in the 1930s.” [Press Release, 10/1/08]

3. Perhaps McCain heard about stronger versions of such a FDR style mortgage conversions from Clinton's Global Initiative in cosmopolitan New York a few weeks ago, or maybe from Hillary Clinton's article in  the Wall Street Journal

Because Democrats have actually wanted something better and stronger then what made it into the compromise bill that passed. 

What McCain has called and pretended is new and more populist is in fact weaker then what the Senate Democrats wanted, and no more then what is already in the legislation.

Indeed, today McCain advisor Charlie Black, actually acknowledges that McCain took the idea from Hillary Clinton.

Even though it goes against everything McCain and the rest of the Republicans have opposed until know:

4. This whole issue was predictable insofar as it was in follow-up to Palin's botching of the McCain position during her debate with Biden last week:

The Alaska governor incorrectly made it sound like McCain supports giving bankruptcy judges the power to rewrite mortgage payment terms on first homes.

He doesn't.

The McCain campaign confirms to ABC News that Palin misstated McCain's position.

"No, that is what is called the cramdowns, which is so objectionable that Obama didn't even want it jammed into the stabilization bill," said McCain spokesman Brian Rogers when asked if McCain supports giving bankruptcy judges the power to re-adjust the interest rate and principal to help people stay in their homes.

As Dana Goldtein points out on Tapped:

Is McCain's proposal as strong [as the Clinton and Senate Democratic propsosal]? No. A key weakness of the package that passed Congress is that it leaves too vague how the Federal Housing Authority and Treasury Secretary should go about the large scale refinancing of sub-primes. Democrats had proposed that bankruptcy judges be given such powers, but that provision was lost during negotiations. McCain's proposal is simply not as specific as it needs to be, as it does not create a structure through which refinancing can easily take place. Alongside the "Main Street/Wall Street" juxtaposition, this appears to be another clear rheotrical appropriation by McCain of a Democratic idea.