Obamas mortgage plan -By Alexandra Koenig
President Obama proposed his plan to deal with the current mortgage crisis on February 19, 2009. Since its introduction the plan has received mixed reviews from financiers, politicians and the public. I believe that the plan is necessary with the current ailing state of the economy. It is inarguable that the United States former economic policies have been exhausted beyond their capacity. At present over twenty-seven percent of Americans are carrying mortgages that are worth more than the total net-value of their homes. Obama’s plan attempts to ease the burden of the heavy mortgages and the pending foreclosures, which over nine million Americans are presently dealing with.
The first step of Obama’s plan is aimed at preventing the state of the economy from worsening. The first step enables those Americans who are facing foreclosure to refinance their mortgages through government aid. If mortgages generate bigger losses than expected the government and not private investors will have to absorb the brunt of these losses. Although this plan will cost taxpayers in the long run I believe it is a necessary element in stabilizing the American economy. The plan attempts to avoid an even greater increase in foreclosure rates, which needs to be the government’s main priority in order to avoid a continued decrease in real-estate values and subsequent job loss.