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Criticisms on Modification of Loans and Other Obama Economic Glitch Fixes

The Obama administration has received a lot of bashing because of its alleged haphazard establishment of programs to lessen, if not totally eradicate, the shock of the recession on the U.S. economy. Some of the controversial recession solutions that the government has proposed and passed are the Credit Card Bill, The Health Care Bill, and the Obama Modification of Loans Plan.

Let us take a closer look at why these programs have been under fire.

Credit Card Bill

The Credit Card bill has heralded a new era of credit card and banking practices in the U.S. For consumers it meant so much financial relief as it would protect American cardholders from abuses in the banking industry by putting a cap on over limit fees, taking out double cycle bills fees on online bill payments, and implementing stricter measures in approving credit card applications for minors. On the other hand, for major credit card issuers and banks, it meant overhauling traditional practices that could lead to dire consequences on the industry’s revenues. According to a cumulative study and predictions of banks, this could lead to higher credit card charges, the industry’s way of getting back the lost revenues. Another adverse effect of the bill is that it would limit credit accessibility. Now, credit card issuers will be stricter in assessing the risk of every application they process before approval. In the end, those who need credit might not be able to be approved right away because of the results of the Credit Card bill.

Health Care Plan

Another part of Obama’s recession fix is the Healthcare plan. Under the Obama healthcare 2009, the government will cover the health insurance of all Americans. Although this sounds very beneficial to citizens, the healthcare is now under fire. Many politicians and citizens are vocal about their disapproval of the plan. According to them, the program would only serve the advantages of the minority and will leave the majority with more taxes to be chopped off from their meager income.

The healthcare debate is still an ongoing issue that will continue to create fire unless the government is able to write a bill that creates a balance for both those who are a great healthcare risk and those who do not need much of the insurance.

Loan Modification

The Obama administration has included loan modification as part of its economic glitch fix. This program has been instituted in the hopes of fixing the rising number of troubled loans in the US. The government has pledged $75 billion to get this program to work. Under this program, lending institutions should follow the conditions stated below in modifying loans:

?    Reduce the monthly payment by 31%
?    Reduce the interest rate for as low as 2%
?    Extend the term of the loan to up to 40 years

This may seem like the perfect situation for borrowers, but some lenders and financial analysts think otherwise. They are saying that it is too ambitious and that the trends in US housing would make it impossible for this plan to work. In the last survey, 53% of those modified loans went bad again after only a period of 6 months. Moreover, it would only make lenders more and more adamant against the modification of loans just like the prediction of what credit card bill might bring to the table.

These are just some of the criticisms to the programs established by the Obama administration to prevent the recession from decimating what is left of the U.S. economy. Although these programs have been instituted in the hopes of saving Americans from sinking deeper into the spells of the financial crisis, no economic glitch fix would work unless there is proper planning and implementation. There is a need for a well-oiled system of authoring the bill to make sure that all factors and parties are taken into account to serve the good of the majority. At the same time, these programs should be implemented in accordance to the conditions set during the writing of the bill. At the end of the day, these economic glitch fixes would only deserve being called such if they serve the common good and deliver the results they promise.

WASHINGTON – Health Care talk is really beginning to heat up. Obama health care issues are going to heat up even more in the next few months as the health care reform bill is being debated over. And this comes at the most ripe moment.

Not many Americans have health insurance right now due to various causes but mostly due to the recession. It is estimated that almost 46 million U.S. citizens aren’t insured while an estimated 25 million others have inadequate insurance because employers no longer include health benefits due to recession cost cutting measures and the exorbitant rates of medical expenses. According to some studies, the health care per US citizen costs 50% more than the country’s next highest medical expenses.

There is no doubt in everyone’s mind that the county’s system needs an overhaul. The health insurance industry and both political parties agree on this. But clearly, from the varied reactions on the Obama Health Car 2009 proposal, everyone is arguing about how this change should be done.

The Obama health care 2009 is hinged on a new health reform bill proposed by the administration. This proposed Obama health care issues have drawn a lot of fire from the critics especially in the conservative side of the fence. Losers of last year’s election Sarah Palin and John McCain are behind one of the first strikes against the bill. Zooming in on one of the bill’s provisions that states that the Government will have a hand in the decision making process of whether to provide life saving medical care to people who are terminally ill or not as well as a rationing of Medicare benefits. Sara Palin, in her Facebook account conjures up images that of the bill giving way to “death panels” or a government officiated group of people discussing which people or cases deserve health care and which should be denied health care.

A lot of people already debunk these claims. The award winning politifact.com and the NY Times have already called these statements false. Even so, the administration stripped out the controversial provision. According to McCain “it’s been taken out, but the way that it was written made it a little bit ambiguous.” This tactic has been used many times before: creating a baseless claim, then ignoring the original indefensible claim and instead calling attention to the “ambiguity” of how the bill is worded. President Obama now calls on to the bill detractors to fight on fair grounds. He encourages a debate on the Obama health care issues that dispenses such blatant misinformation.