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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.

When President Obama talks, everyone listens — especially when the topic is about the economy. Of course, we all know what is going on right now. Everyone can attest how bad our economy is. But how much do we really know? And how will this affect the credit card industry? The truth is, we really don’t know enough, and at this time of age where information is becoming more of a necessity than a commodity, then knowing more about what is going on in the economic world is vital to making informed decisions later on.
So, going back to the proverbial question: Just how bad is the economy right now? Everyone knows that it’s in a staggering near-life-and-death situation. Although we are not saying that it is impossible to solve, we should be aware of them nonetheless. And the first thing to do is to focus on the two most pressing problems that need immediate attention. These are:
The problem with wages. Wages become stagnant while prices continuously increase. According to an article at Obama’s website, “the cost of in-state college tuition has grown 35 percent over the past five years. Health care costs have risen four times faster than wages over the past six years. And the personal savings rate is now the lowest it’s been since the Great Depression.”

The problem with tax cuts. The truth is, tax cuts favor the rich instead of the middle class. The Bush administration went all out in giving tax cuts to those who earn over a million dollars. In fact, it went all out that the cut was 160 times greater than the middle-class earners. In addition to this, Bush has neglected health care, education and housing benefits for the middle class.
With all these problems happening in the current scene, how does it affect the credit card industry? To start with, economic downturns cause fluctuating interest rates to happen. In addition, President Obama acknowledges the main problem of most consumers when it comes to credit cards — exploitation from consumers.
These situations have led him to recognize the “predatory credit card practices,” and here are some of the solutions he will implement in his administration.
First, Obama and Biden will create a five-star rating system so every consumer will be abreast with the risks of using credit cards.
Second, a Credit Card Bill of Rights will be established. This will help stop credit card companies from taking advantage of consumers.
Third, a credit card rating system will be created. It will be modeled on five-star systems used in other products. This will help consumers identify a credit card’s ranking system, based on the card’s features. In addition, the credit card companies are mandated to display this rating on all application and contract materials, making the consumers well-informed of the major provisions of credit cards without going through pages and pages of lengthy documents that discourage people from completely reading it.
Fourth, a Credit Card Bill of Rights to protect consumers will be implemented. This plan will ban unilateral changes, apply interest rate increases only to future debt, prohibit interests of fees, prohibit “universal defaults,” and require prompt and fair crediting of cardholder payments.