Number two, with regard to bankruptcy now, Gwen, what we should be doing now -- and Barack Obama and I support it -- we should be allowing bankruptcy courts to be able to re-adjust not just the interest rate you're paying on your mortgage to be able to stay in your home, but be able to adjust the principal that you owe, the principal that you owe.
That would keep people in their homes, actually help banks by keeping it from going under. But John McCain, as I understand it -- I'm not sure of this, but I believe John McCain and the governor don't support that.
(My emphasis added. For the full transcript, click here.)
I loved Governor Palin's performance, but I wish she would have hammered him for this point. Judging from the feedback the House of Representatives has received, it is hard to think that anyone here (except for someone saddled with a mortgage they can't afford) would cheer this line.
Adjusting the principal is another way of saying that a portion of the loan is forgiven. Why on earth would anyone feel obligated to their debt obligations after that precedent was set?