A McCain economic adviser says the plan would provide direct help to homeowners, rather than helping them indirectly by bolstering financial markets. Douglas Holtz-Eakin says the move would also serve to stabilize the plunging values of mortgage-backed securities, which have been at the center of the financial crisis.
Barack Obama has made similar though less categorical suggestions in recent weeks. An Obama economic adviser says the Democrat has "consistently" backed policies to buy and restructure home mortgages and continues to support the idea.
