Showing posts with label housing. Show all posts
Showing posts with label housing. Show all posts
Thursday, March 12, 2009
Urgency-I'll give you urgency!
In a past article, I pointed out how impressed I was with the way the President carried himself and maintained an air of optimism throughout the majority of his speech. What I neglected to mention was that he may have overemphasized the fear portion a bit. Many analysts commented on the same thing and criticized him for attempting to scare Americans into being more receptive to his plans. I felt that perhaps by focusing too strongly on the urgency; he was looking for a way to justify some of his perceived excessive spending. Well, if anything, he did not focus on the urgency enough.
The Washington Post commented that the President lacked the enthusiasm necessary in some of his previous speeches. Former President Bill Clinton publicly criticized him on that very thing. Some of the President’s detractors pointed out that he focused primarily on economic issues with not enough attention given to foreign affairs. For that, I applaud him. For too many years, Bush cloaked the eroding economy with a barrage of patriotic rhetoric centered on Iraq and Afghanistan sprinkled in with the threat of a nuclear presence in North Korea and Iran. In no way do I mean to trivialize these dangers, however, they were not the greatest dangers facing our country.
It is time to step off my soapbox and provide some sobering numbers to hammer home my point. As reported by MSNBC News; the U.S. Department of Labor and the Commerce Department had the task of delivering these harbingers of doom. I will attempt to encapsulate these statistics into 3 categories: housing, unemployment, and manufacturing. Beginning with housing; new home sales are at an all-time low and home resales are at the lowest they have been in 12 years. The value of homes is quickly dropping far below the amount that was borrowed. The Housing Bill only provides relief for those whose value falls 5% or less. And still he smiled.
Grouping unemployment and manufacturing is simple enough. I will start with the most startling statistic I read. People receiving unemployment benefits, coupled with those who are receiving additional funds due to an extension granted by Congress, is 6.5 million!! The figure at this time last year was 2.8 million which we felt was alarming. And still he smiled. New unemployment claims last week alone totaled 667,000-the worst since 1982. The current rate is an unbelievable 7.6%. And still…all right, all right.
Regarding manufacturing; the Commerce Department reported that big ticket item sales fell for a record 6th straight month. This is also a reflection of the state of the global economy. Consumers have simply cut back on purchases of any size which, of course, leads to increased job cuts. As an example, though not a manufacturer, J P Morgan Chase&Co. has recently announced that it plans on eliminating 12,000 jobs. Economist Zach Paul stated that corporations, regardless of size, have been forced into “working with the minimal work force possible”. Believe me; I have more but for your sake and mine we will concede that the point was made. To be kind, I didn’t touch on the banking industry.
Maya MacGuineas, President of the Bipartisan Committee for a Responsible Federal Budget (quite a title) was quoted as saying: “They’ve painted the worst-case scenario in order to make it as easy as possible to improve on”. There is NO WAY she said that with a straight face. Other detractors point to the excessive spending in the new bills and budget as merely adding to an already ridiculously high deficit. To them I say: I couldn’t care less. To quote the late inspirational football coach George Allen: “The future is now!” Given these numbers, drastic measures are imperative. We must keep in mind that the President inherited these problems and is being as aggressive as possible to resolve them. I respect the man for even running for the presidency considering the state our nation is in. And still he smiled.
Thursday, March 5, 2009
President Obama's Speech: Optimistic yet realistic
Feb 25 2009
It is not very often that I find a speech by anyone, let alone a politician, able to captivate my attention the way President Obama’s did last evening. To be honest, I find myself switching to ESPN about 20 minutes into most. Make no mistake; just as I find it unfair how certain members of the GOP, and some of these mindless pundits judge him after only 5 weeks-I am not ready to nominate him for a Nobel Prize yet either. However, at least for one night, he appeared as a man completely in control of himself and the daunting task he is faced with. As I listened, I found myself thinking that just 5 weeks ago we had a man whose IQ is at least 50 points lower than his leading our country. In the words of Bob Dylan: “A simple twist of fate”.
Throughout his speech, he consistently pointed to three areas that concerned him the most: education, health care reform, and energy reliance. These have pretty much been at the forefront of the last 3 administrations. However, President Obama was able to convince me that he was actually going to do something about them. In fact, he already has. As part of the stimulus plan, he has made it possible for 7 million young men and women to attend college. He has also made cuts in other areas in order to avoid the layoff of teachers. The fact that the U.S. has one of the highest dropout rates of all industrialized nations is nothing short of a slap in the face. Because of this; the President plans to increase funding in areas such as Early Childhood Education and more Charter Schools. He will also implement a plan that rewards those teachers that prove to be innovative and produce positive results. That alone is something I think is long overdue.
With regard to health care; he has helped pass legislation which will allow 11 million children to be insured. On Monday, he is creating a panel consisting of health care professionals such as doctors, administrators, and insurance specialists to address the issue of health care reform. He contends that the lack of efficiency is at the root of the problem. I was a bit taken aback when he stated that 1.5 million Americans may lose their homes in the next year due to medical costs. I know from personal experience that if you do not have a solid insurance plan, you can lose everything because of a health problem. In 2003, I suffered a heart attack and my total bills amounted to $140 thousand. Fortunately, I was a member of the Carpenters Union who were able to provide us with an excellent insurance plan. Without it, I would have lost my home.
When President Obama spoke of energy reliance, there was a hint of anger in his tone when he pointed out that China now leads the world in the use of renewable energy. He was equally upset that we were the first country to experiment with solar power and have since been passed by Germany and others in its use. Because of these things; he has pledged to allot $15 billion annually to energy technology.
It would be impossible for me to accurately depict the crisis facing both the banking and auto industries. One of the reasons is the ever-changing relief amounts requested. To emphasize this point, the New York Times reported that on Monday the American International Group (AIG) asked for additional tens of billions on top of the $150 billion previously requested. Citigroup is experiencing the same type of problems as they see their losses continue to mount. As I said; it is pointless to beat this proverbial horse. He is fully aware that his decision to continue granting aid to these institutions is not a popular one, but it is one that must be made in order to restore credit opportunities for Americans. This is an integral part in stimulating the economy. There was talk of nationalizing the banking industry but that has been replaced by a tracking system that will be put in place to enable all Americans to see how their tax dollars are being spent. Accountability will be the primary focus and Vice President Joe Biden will be in charge of the oversight. President Obama jokingly (sort of) commented that “You don’t mess with Joe”.
The auto industry has joined ranks with the banks in asking for additional monies exceeding the already exorbitant amounts already requested. General Motors and Chrysler are asking for an additional $22 billion on top of the $17 billion already promised. The President was quick to point out that this was in no way excusing them for their past performance, but a necessary move in order to help them re-tool and make them viable again. The number of jobs at stake should either of these giants go under is staggering. It is clear that the bailout is simply the lesser of two evils
Throughout the President’s speech, he maintained an optimistic view of the chance of recovery; albeit a slow recovery. The American public has come to appreciate that they are looking at 2 to 3 years before they see significant improvements. The President didn’t hesitate to explain the gravity of the situation; as the aforementioned numbers clearly indicate. Mixed in with battle cries of “We will recover” were reminders that we are on the brink of a total collapse. A collapse that has the potential to cripple the global economy as well. He issued challenges to lawmakers to set aside party differences and work together to focus on the future. Only this will help us crawl out of this seemingly bottomless pit. To his credit, the President refrained from taking shots at the previous administration that allowed these conditions to escalate year after year. Instead, he chose to take the high road and appealed to Americans and their history of resiliency to help in overcoming these incredible obstacles.
Though admittedly inspired; only time will tell if I witnessed a historical speech or merely more political rhetoric. Presently, President Obama has captured the hearts of Americans and is asking them to join him in this fight, and if the polls are any indication, the answer is an emphatic YES!!
It is not very often that I find a speech by anyone, let alone a politician, able to captivate my attention the way President Obama’s did last evening. To be honest, I find myself switching to ESPN about 20 minutes into most. Make no mistake; just as I find it unfair how certain members of the GOP, and some of these mindless pundits judge him after only 5 weeks-I am not ready to nominate him for a Nobel Prize yet either. However, at least for one night, he appeared as a man completely in control of himself and the daunting task he is faced with. As I listened, I found myself thinking that just 5 weeks ago we had a man whose IQ is at least 50 points lower than his leading our country. In the words of Bob Dylan: “A simple twist of fate”.
Throughout his speech, he consistently pointed to three areas that concerned him the most: education, health care reform, and energy reliance. These have pretty much been at the forefront of the last 3 administrations. However, President Obama was able to convince me that he was actually going to do something about them. In fact, he already has. As part of the stimulus plan, he has made it possible for 7 million young men and women to attend college. He has also made cuts in other areas in order to avoid the layoff of teachers. The fact that the U.S. has one of the highest dropout rates of all industrialized nations is nothing short of a slap in the face. Because of this; the President plans to increase funding in areas such as Early Childhood Education and more Charter Schools. He will also implement a plan that rewards those teachers that prove to be innovative and produce positive results. That alone is something I think is long overdue.
With regard to health care; he has helped pass legislation which will allow 11 million children to be insured. On Monday, he is creating a panel consisting of health care professionals such as doctors, administrators, and insurance specialists to address the issue of health care reform. He contends that the lack of efficiency is at the root of the problem. I was a bit taken aback when he stated that 1.5 million Americans may lose their homes in the next year due to medical costs. I know from personal experience that if you do not have a solid insurance plan, you can lose everything because of a health problem. In 2003, I suffered a heart attack and my total bills amounted to $140 thousand. Fortunately, I was a member of the Carpenters Union who were able to provide us with an excellent insurance plan. Without it, I would have lost my home.
When President Obama spoke of energy reliance, there was a hint of anger in his tone when he pointed out that China now leads the world in the use of renewable energy. He was equally upset that we were the first country to experiment with solar power and have since been passed by Germany and others in its use. Because of these things; he has pledged to allot $15 billion annually to energy technology.
It would be impossible for me to accurately depict the crisis facing both the banking and auto industries. One of the reasons is the ever-changing relief amounts requested. To emphasize this point, the New York Times reported that on Monday the American International Group (AIG) asked for additional tens of billions on top of the $150 billion previously requested. Citigroup is experiencing the same type of problems as they see their losses continue to mount. As I said; it is pointless to beat this proverbial horse. He is fully aware that his decision to continue granting aid to these institutions is not a popular one, but it is one that must be made in order to restore credit opportunities for Americans. This is an integral part in stimulating the economy. There was talk of nationalizing the banking industry but that has been replaced by a tracking system that will be put in place to enable all Americans to see how their tax dollars are being spent. Accountability will be the primary focus and Vice President Joe Biden will be in charge of the oversight. President Obama jokingly (sort of) commented that “You don’t mess with Joe”.
The auto industry has joined ranks with the banks in asking for additional monies exceeding the already exorbitant amounts already requested. General Motors and Chrysler are asking for an additional $22 billion on top of the $17 billion already promised. The President was quick to point out that this was in no way excusing them for their past performance, but a necessary move in order to help them re-tool and make them viable again. The number of jobs at stake should either of these giants go under is staggering. It is clear that the bailout is simply the lesser of two evils
Throughout the President’s speech, he maintained an optimistic view of the chance of recovery; albeit a slow recovery. The American public has come to appreciate that they are looking at 2 to 3 years before they see significant improvements. The President didn’t hesitate to explain the gravity of the situation; as the aforementioned numbers clearly indicate. Mixed in with battle cries of “We will recover” were reminders that we are on the brink of a total collapse. A collapse that has the potential to cripple the global economy as well. He issued challenges to lawmakers to set aside party differences and work together to focus on the future. Only this will help us crawl out of this seemingly bottomless pit. To his credit, the President refrained from taking shots at the previous administration that allowed these conditions to escalate year after year. Instead, he chose to take the high road and appealed to Americans and their history of resiliency to help in overcoming these incredible obstacles.
Though admittedly inspired; only time will tell if I witnessed a historical speech or merely more political rhetoric. Presently, President Obama has captured the hearts of Americans and is asking them to join him in this fight, and if the polls are any indication, the answer is an emphatic YES!!
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