Wednesday, February 18, 2009

Obama reveals new $75 billion mortgage plan

President Barack Obama unveiled today his plan to stem housing foreclosures, a problem that helped spark the current economic crisis.

In Mesa, Arizona, Obama said the government would commit $75 billion to a package that would help homeowners refinance their home and provide extra credit backing to the government's Fannie Mae and Freddie Mac mortgage companies.

“This plan will not save every home, but it will give millions of families resigned to financial ruin a chance to rebuild,” Obama said. “It will prevent the worst consequences of this crisis from wreaking even greater havoc on the economy. And by bringing down the foreclosure rate, it will help to shore up housing prices for everyone.”

President Barack Obama unveiled his $75 billion mortgage relief plan, a series of measures the president says will keep 9 million people from losing their homes. (Feb. 18)

Boston Globe
Obama Unveils $75 Billion Plan to Fight Home Foreclosures
New York Times - 30 minutes ago
Speaking in Mesa, Ariz., President Obama said that the housing bailout would “prevent the worst consequences of this crisis from wreaking even greater havoc on the economy.
Republicans, analysts question Obama's foreclosure plan CNN International
Government Doubles Available Aid to Fannie and Freddie Washington Post


Jon said...

I’m sure Obama is legitimately doing what is required of him based on the current situation. If that’s the case, one has to wonder whether he’ll be forced to do the exact same thing two years from now and send more troops to Iraq following a withdrawal. For more check out

humancafe said...

This should be announced as a long term solution to our nation's banking problem.

To solve the present banking panic, especially by those who call for bank nationalization (what reduced bank shares to penny stocks), and to stem the sudden loss of trust in our financial institutions; would it not be best to utilize a tool the government has, what is called the US Treasury's Exchange Stabilization Fund, to commence a program of bank stock stabilization by buying shares into the public coffers (with intention of selling them at a future date), and thus bring back stability to the damaged market place? What is most at risk today is trust in our banking system, a trust without which it cannot exist. This fix will cost less than current proposals, and give banking the room to right itself from this mortgage debacle.

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