The U.S. government's efforts to combat a declining economy and a financial industry burdened with heavy debts is reaching its climax this week as President Obama Barack Obama and Congress will put into motion plans to create or maintain jobs, provide tax cuts to consumers and businesses while making an attempt to free up the credit markets.
Tuesday evening President Obama held his first press conference since taking office arguing once more to secure support for an economic stimulus package which is expected to cost $838 billion, according to the Congressional Budget Office.
It is absolutely true that we cannot depend on government alone to create jobs or economic growth, Obama said. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life.
The financial industry rescue plan from the Obama administration will be unveiled today by the President's top economic official, Treasury Secretary Timothy Geithner. The $1.5 trillion plan includes three main components: additional capital for banks, up to $1 trillion in financing for more consumer and business loans, and public financing for investors who wish to buy bad bank assets, people familiar with the matter told Bloomberg.
Part of the solution for the financial industry crisis will come from spending the second half of a $700 billion fund from from the Troubled Assets Relief Program which was already approved by Congress under the Bush Administration. How the first half was spent under his predecessor came under criticism for a lack of transparency and accountability. Obama has vowed to make adjustments.