The Obama administration released a plan to unfreeze credit by helping struggling banks to rid themselves of bad loans through a one to two trillion dollar purchase to stimulate economic activity. The news resulted in a huge stock rally, though it later cooled down as all the info was released in the presidential address started to take root and settle in. The initial shock and hesitancy should wear off as the pieces start to fall in place in President Obamas ambitious plan.
The President and his administration have plans to overhaul financial regulations including such plans as greater government regulation and even in some cases to take over financial companies who are in danger of collapsing and causing havoc throughout the entire system, such as the controversial AIG. President Obama continues to stress the importance of helping companies such as AIG in order to build the economy up and stop the bleeding. If Insurance coverage and lending cease it would destroy what is an already faltering economic system.
The nations greater needs take precedence over continuing the focus on the recent bonus scandals that have been surrounding such companies. President Barack Obama has urged the Nation to turn their attention to the bigger picture rather than focus on executive bonuses. While he has shown outrage over this himself, he sites continued micro-attention on it as a distraction from the crisis at hand.
Obama stated that his administration is working on all angles of this crisis as we have seen through recent task forces designed to stop just this sort of behavior. He reiterated one part of his economic plan saying that its a strategy to create jobs, to help responsible homeowners, and to restart lending. This will help grow our economy over a period of time.
The president remains optimistic despite the worst economic crisis we've faced in over 25 years, but reminds Americans with his usual directness that it will take a while. It will also take diligence and it will take an understanding that when we work together, when each of us looks beyond our own short term gains to the wider set of obligations we have to each other, thats when we will succeed.
About the Author:
Scott Darrohn specializes in Bad Debt Collection and works for a professional Collection Service
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