Even as President Obama’s financial reform looks all set to make a place for itself in the economic fabric of the country, critics within political circles say that these changes will still not address the risks posed by “too big to fail” institutions. [Read more…]
Loan Modification Program Proves to be Ineffective
The Obama administration’s Home Affordable Modifications program, under which distressed homeowners are being helped by modifying their mortgage loans so that they can avoid foreclosure, is likely to prove ineffective.
The latest statistics released by the Treasury Department and the Housing and Urban Development Department show that the number of borrowers who are defaulting on modified mortgage loans is quite high. Last month, the number of ‘cancelled’ loans doubled and reached close to 3,000 from around 1,500 in February. An even larger number have not been making their mortgage payments on time. [Read more…]
Making Work Pay Tax Credit Leads to Confusion
The tax credit scheme Making Work Pay is a part of the American Recovery and Reinvestment Act of 2009, signed into law by President Obama in February last year.
This scheme affects 95% of the American population and has been undertaken by the Obama government in an effort to credit a few extra dollars in to the accounts of Americans to increase their disposable income. This will lead to a multiplier effect, which is expected to infuse as much as $65 billion in the economy and act as yet another stimulus for economic recovery. [Read more…]
Obama Administration Optimistic About Economic Recovery
According to statements from President Obama’s team of economic advisors, the American economy is recovering slowly but steadily. Last month recorded a moderate rise in employment, and senior advisers to the President said that real progress was being made for bringing down the current unemployment rate, which stands at 9.7 percent. Around 162,000 new jobs were created in the month of March. [Read more…]
Unemployment Likely to Play a Big Role in Determining Elections Outcome
As the unemployment rate continues to hover at undesirable levels, analysts are of the opinion that this will play an important role in determining the fate of upcoming elections. The current recorded unemployment rate of 9.7% is appalling, even if the recent recession is taken into account.
Post recession, analysts are still trying to understand why the unemployment levels dropped to these dismal depths even though the predictions made earlier showed slightly better prospects for the jobs market during the worst of the recession. [Read more…]
Senators Up in Arms against Yuan Manipulation by China
China’s currency policy is likely to come under fire if a bill introduced by a bipartisan group of senators in the US is accepted into the legal framework of the country. The legislation is aimed at prompting Obama’s administration to take effective and immediate action against countries like China, which have been suspected, for some years, of purposely pressuring down its currency to gain an edge in the international trade. [Read more…]
Chinese Premier Disapproves of US Call to Revalue Yuan
Wen Jiabao responded to Obama’s call to revalue the Yuan’s exchange rate by saying that he doesn’t think that the Chinese currency is currently undervalued and there is no need to make any changes with regards to it. Wen’s statement comes in response to Obama’s comments on Mar 11, when he urged China to adopt market driven exchange rates. [Read more…]
170,000 Get Mortgage Modifications Under Foreclosure Prevention Program
Government’s foreclosure prevention program has been successful in providing permanent aid in the form of mortgage modifications to 170,000 distressed home owners. Another 91,800 homeowners’ permanent modification applications have been approved by lenders and will come in effect upon the borrower’s acceptance. This will up the tally of total number of people receiving permanent aids under the program to more than 250,000. [Read more…]
Government Could Take Over Student Loan System
If the Obama administration has its way, the government could soon take over the student loan system. The move has been criticized by many people, including Lamar Alexander, the U.S. secretary of Education from 1991 to 1993.
The administration’s proposal is that from July, about 19 million students who seek government backed loans for education should apply directly to the U.S. Education Department. This is in stark contrast to the current system where students and their educational institutions exercise their choice in deciding on lenders. [Read more…]
