Barack Obama to help nine million US households keep their houses
Wednesday, April 8th, 2009Barack Obama has recently announced that £52.7 billion will be donated as part of a rescued package for households in the US in danger of repossession, the President said “Our housing crisis was born of eroding home values, but also of the erosion of common values.
According to the American President, “Solving this enormous crisis will require more than resources, it will require all of us to take some responsibility”. This acknowledgment that the government must set some rules and the bank lending policy is very distorted is a breath of fresh air. The total amount of money dedicated to at least stabilising the US economy could reach as much as $275 billion which is just a staggering figure to try and comprehend. Fannie Mae and Freddie Mac are to rewrite mortgages which will hopefully kick start the rest of the country into actually paying back the money that they have owed on their properties.
Additionally, the US have announced that they will be putting many resources and money into building new developments around North America where some of the most poverished areas of the US are. This housing development is long overdue and there is a great need for some new houses and developments and new life into states such as Dakota and Detroit. The houses themselves will be just a basic dwelling to serve the purpose of housing homeless people around America.
Critics have argued that the new administration for the Barack Obama presidency has failed to live within its means, by putting together a $787 billion stimulus bill. The housing rescue plan was forecast to be in the region of $50 billion, but Democrats, including Barney Frank, the influencial chairman of the local finance committee in the house of representatives, thought $100 billion was he amount needed.