After the $787 billion economic stimulus plan was signed into effect, United States President Barack Obama has unveiled a $75 billion plan to help homeowners.
Yesterday, President Barack Obama was in Denver, Colorado, when he had signed the slimmed down $787 billion economic stimulus bill into effect. Getting the bill passed was a long and hard-fought battle between Obama and the Republicans in Congress. In the US House of Representatives, Republicans unanimously opposed the economic stimulus. In the US Senate, Democrats and moderate Republicans joined together and slimmed down the stimulus to $787 billion.
It is unknown whether or not Obama has overcome his first major domestic challenge. However, Obama is far from being out of the woods. Perhaps he may find his second major domestic challenge.
Obama was in Mesa, Arizona today where he would unveil his new economic plan to help millions of homeowners across the United States. This new “lifeline” is worth up to $75 billion. This is to prevent home evictions and to help stabilize the housing market.
However, Obama did say that not every home will be saved by this plan. He said it will help. But, Obama said that the plan does have its limits. If you are one of the unscrupulous or irresponsible homeowners, the plan will not help you.
“We are not just helping homeowners at risk of falling over the edge, we are preventing their neighbors from being pulled over that edge too – as defaults and foreclosures contribute to sinking home values, failing local businesses and lost jobs, Obama explained.
Obama said who the plan will help and the plan will not help. Obama said that it will not help speculators and dishonest lenders. Overall, Obama said the plan will not help those that took irresponsibly risky bets.
However, Obama could come across some more GOP opposition in the future. In respects to the housing plan, an article on Politico says that there are vital parts that have been left out.
It states that there are some factors that could affect the plan. One of those factors would be a lack of aggressive attempts to encourage principal write-downs on homes. Another factor is that this plan does not really talk about the currently foreclosed homes.
So far, Republicans say that this plan does the opposite of what Obama said it will do. While Obama says the plan will not help the irresponsible, Republicans say that it is the other way around.
According to House Republicans, this plan will reward irresponsible borrowers. Overall, this housing plan could be Obama’s second domestic let alone economic challenge. How will this plan fare? We will have to wait and find out.