The Obama Administration has been meeting recently to discuss the countries current struggling housing market. To combat the issues various proposals have been brought forth to keep families in their homes and to prevent further foreclosures in the U.S. market. Over the past two years a number of foreclosures has been exponentially high in comparison to the economy. Such a high number of foreclosures puts the banking sector of our economy at an even higher risk. The new proposal of the Obama administration is setting $50 billion towards helping out homeowners who have been recently unemployed or no longer have a sustainable income to keep them in their current homes. This type of economic reform is the government’s way of creating a new trust from the people. Recent stimulus packages have brought a lot criticism from the media because of the amount of funds being used as well as the ineffectiveness of them. If this new bill works it is thought that a trust will be brought back to the government that has not existed for some time. However, if it fails as previous bills have it is unforeseen what damage will be done to the trust the people once had in the housing market being turned around. The problems with foreclosures and people defaulting on loans with U.S. banking institutions has been labeled as the “Vietnam War of the American financial system” according to Howard Glaser, a housing analyst for the White House.
http://www.nytimes.com/2010/03/27/business/27modify.html?pagewanted=1&ref=politics
I believe that the plan should be implemented with the recent state of the housing market. My mother is a realtor and the housing market has been terrible over the past 2 to three years. This bill could help the economy drastically. I also agree with the fact if this bill works it could bring trust back to the government as well. The government needs to step in and help people to stay in their homes.
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