Tuesday, October 14, 2008

Obama's plan to help victims of financial crisis

Speaking in Toledo Monday, Senator Barack Obama laid out steps to help employers, automakers, homeowners, the unemployed, and state and local governments. A refreshing approach compared to the prevailing top-down measures that continue to come from the Bush administration's Treasury Department.

The International Herald Tribune reports that Obama, "proposed giving employers a $3,000 tax credit for each new hire to encourage job creation. He said he would seek to allow Americans of all ages to borrow from retirement savings without a tax penalty; to eliminate income taxes on unemployment benefits; and to double, to $50 billion, the government's loan guarantees for automakers.

Obama also called on the Treasury and the Federal Reserve to create a mechanism to lend money to cities and states with fiscal problems, and to expand the government guarantees for financial institutions to encourage a return to more normal lending. He also proposed a 90-day moratorium on most home foreclosures; it would require financial institutions that take government help to agree not to act against homeowners who are trying to make payments, even if not the full amounts."