In the Aftermath of the Foreclosure Crisis Obama Feels that the Country Needs a Stimulus Programme
On Saturday 3rd January President-elect Obama pressed on the leaders of the Congress the urgency to initiate a recovery plan. Republicans are humming and hawing wanting more time to mull over the details.
Obama opined that an American Recovery and Reinvestment Plan should be passed so as to create about 3 million jobs. He has not yet finalized the exact price tag for it but his assistants said that the cost of such a programmed could be a staggering $775 billion.
On Friday 2n January Obama said in a taped message broadcast over YouTube on Saturday, “Far too many families, this new year brings new unease and uncertainty as bills pile up, debts continue to mount and parents worry that their children won’t have the same opportunities they had.”
The first and foremost challenge before Obama when he takes over the reins of the government on 20th January, is the economic health of the nation. The Federal Reserve apprehends that lenders will be foreclosing on 2.25 million house owners. It will calculate to double the rate of foreclosures since the crisis made its debut. The foreclosure rate is 1:10 – the word foreclosure referring to all the stages of the process.
The speaker of the House, Nancy Pelosi (Democrat) and Harry Reid the leader of the majority in the Senate will be getting the details of the plan on Monday 5th January. In that week Obama plans to hold meetings with other leaders of the Congress including those from the Republican Party. He will be needing their support to push through his plan unhindered. Obama took pains not to put the blame on George Bush for the present foreclosure fiasco.
Obama said, “However we got here, the problems we face today are not Democratic problems or Republican problems. The dreams of putting a child through college, or staying in your home, or retiring with dignity and security know no boundaries of party or ideology… I am optimistic that if we come together to seek solutions that advance not the interests of any party, or the agenda of any one group, but the aspirations of all Americans, then we will meet the challenges of our time just as previous generations have met the challenges of theirs.”
It seems probable that there will be a mixture of tax cuts ($500 to $1,000) for the middle-income group. $200 billion will be ear marked for helping states with health care plans and allied costs.
[...] stimulate economic growth, the Obama administration imposed a tax credit to act as an incentive to increase the level of real estate [...]