Obama's plans include
- Use "our full arsenal of tools" to get credit flowing to consumers and businesses;
- Reform the oversight of the TARP program and other responses to financial crisis;
- Use "smart, aggressive policies" to reduce foreclosures;
- Toughen conditions for recipients of bailout money; and
- Try to attract private capital and speed the end of bailout plans.
For the most part it is alot of common sense, but with some of his own party not for it it might be hard for Obama to get this passed. Unless Republicans agree with this but I am not sure about thier opinion on this idea.
http://www.cnn.com/2009/POLITICS/01/13/transition.wrap/index.html
2 comments:
A lot of the market is based on trust and risk taking. If there are no risk takers, then there would be no use for the stock markets. By reducing foreclosures, and pumping money into the system, the stimulus package is basically just trying to boost the level of confidence that people have in the stock market, because if people are more prosperous, they are more likely to be able to spend their money. The only problem i can see with the current plans and obama's plan is that they should focus more on the middle class, because the middle class is also the biggest consumer class.
I agree with George. The solution starts with the people. Obama can't just go make everything right as he needs the effort of the citizens to make things work. Everybody who is able to spend money, should go out and stimulate the economy, little by little. It will go a long way.
Also, the middle class should be the primary target. The middle class represents the backbone of the country economically. They are the step between poverty and wealth, where all major and daily transactions most commonly take place. If the middle class is helped out, we can be sure to see a change.
So far, in San Mateo, I have driven by restaurants, stores, etc. that have closed down, most likely due to the economy. What was it about them that tied them all together? They were all places where you most commonly find the middle class. For example, the TGIF on El Camino near the Hillsdale Mall shut down. This is, in my eyes, the definition of a common middle class restaurant. The food isn't as cheap as McDonald's but the steaks aren't $100 each. If we can stimulate the middle class, this business would thrive in this crisis. Ultimately, the middle class is that backbone and supporting pillar of the country and we need to help those people out first if we want to see any real change.
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