Currently browsing obama bailout vote

The Obama Bailout always had opposition from some angles, but now it is slowly getting more bad raps. This is because the plan is not working well enough for people to see results. Obama bailout plan architect, Geithner and the president has been telling everyone that the government will do its best to alleviate the situation. The administration is on the frontlines of the news always reminding people that the government is on top of the situation and whatnot. With the massive amount of money that has been diverted to the bailout, people are expecting to see noticeable results. Unfortunately, this isn’t happening yet and the people’s disappointment has grown.

The problem is that people’s hopes were set too high due to common misconceptions. First of all, people think that Obama has a new plan. Although the administration would like you to think that, this is just not true. The strategies that were available then are still the only ones available now (slightly revised because now they have the advantage of having seen the events take place). The problem of housing mortgages is definitely Herculean. We can visualize the system this way: it was a system that was seemed to satisfy so many people at first. But what it was feeding on were loans, non existent money. Soon it was feeding of itself and nobody realized it until the ripple effect caught on, industries went down, jobs got lost, Wall Street crashed and burned. Obama had to try some plan, or else it would look like he’s just been letting the bank heads get all the money while those below suffer the consequences. This was basically what happened to George Bush.

The President has stressed this again and again, but when people look at the numbers in the Obama bailout plan, they feel like it should at least show results in a year. The same is true for the investors in the stock market. The bailout will take time before people will have enough confidence on the market and make it flow again.

The problem of accountability is another issue that people tend to misinterpret. The fact is that more accountability should have been included in the first bailout handout to companies. Unfortunately, this is not what happened. Accountability, if handled well, should incite the needed confidence on the market. However, this will only lead to a small push forward to restarting the economy. It will not however heal the major wound of the economy which is namely the inability of our most prominent banks to lend any more money for people who needs to do business. So even if these banks are held accountable, it still won’t change the fact that they are now bankrupt.

It seems that the bailout has gone down from the pedestal of people’s hopes. Now, some people are acting like starved animals demanding their cut from the Obama bailout. But in the end, all they can really do is wait and keep doing business despite the hard situation. The Obama bailout plan cannot, for example save all the millions of homes that are facing foreclosure; it can only save a handful. One must remember that most of these home are no longer the banks property since shares have been chopped up and bought all around. To recover all of those for loan modification would require the cooperation of so many other sectors and that will of course cost more time and money.

President Barack Obama’s bailout plan is expected to create and even help save at least 2.5 million jobs related to the design, building, and maintenance of renewable energy projects.  These jobs include ironworking, window manufacturing, power distribution, and alternative energy as well.

These news jobs are also expected to prompt community colleges, power companies, and state energy offices to put up training programs to help both seasoned and new workers adjust well in to their new occupations.  More and more people believe that the obama bailout plan may very well be providing jobs to most of the people that have been aversely affected by the global recession.

There are, however, those who believe that the obama bailout plan may very well be causing an even greater problem, and this may very well be a problem that has no immediate solution.  The bigger problem is best explained by a look on a series of situations which could have a significant impact on the American economy.

The bailout plan, as proposed by US President Barack Obama, requires massive monetization of debt by the Federal Reserve, as well as huge new debt issues from the Treasury.  This situation in turn poses the question:  will the US dollar’s status as world reserve be threatened by this massive debt monetization?  Will this be further compounded by the multiyear mutitrillion dollar issuance of new treasuries?

These are pertinent questions because of the following reason: The United States has an economy that is primarily dependent on imports for sources of energy, shoes, clothing, and even advanced technological products.  Should the US dollar ever lose its current status as world reserve, the US will not be able to pay for the imports that sustains it, and this is undoubtedly a crises that is sure to be an even bigger problem than the current economic pinch.

President Obama has recently allayed fears regarding this issue by issuing a statement during a press conference, saying that the US dollar remains strong.  This is on the back of the belief of President Obama’s advisers that the US will have no problem monetizing debt and issue new debt endlessly, since the capital markets of the US are the deepest and most liquid in the world.

Experts, however, still maintain that the current direction of the Obama bailout plan may not be the way out of the crisis that the US is looking for.  Many believe that to avert the even bigger crisis that is looming in the background, the US must focus on saving the dollar’s status as the reserve currency.  This is seen as being done by reducing the US budget and trade deficits, a proposal that may not be the most welcome for the Obama administration.