President Obama Warns Of Economic Catastrophe

February 5th, 2009 by Reed Allmand

According to an article in the Dallas Morning News, President Obama warned Congress that if the $900 billion stimulus package is not passed quickly the recession could quickly morph into a "catastrophe."

The article said:

"A failure to act, and act now, will turn crisis into a catastrophe and guarantee a longer recession, a less robust recovery, and a more uncertain future," he said. "That’s why I feel such a sense of urgency about the Economic Recovery and Reinvestment Plan."

President Obama is correct in that we are facing a catastrophe. As foreclosures, job losses and bankruptcies rise astronomically across the nation many Americans are facing a financial meltdown. But unfortunately I don’t know if the stimulus package in its present form will do enough to save us from the coming catastrophe.

According to the article, an income tax deduction for sales taxes paid on new autos and interest payments on car loans was attached to the stimulus package. This is slightly ridiculous because many Americans, I’m talking at least 6 million Americans have currently faced job losses. And of those jobless people many are struggling to avoid foreclosure on their homes and avoid complete bankruptcy. So, how are these people going to pay for a new car? Why is this "pork" being added to the stimulus package? We need rapid action NOW to help Americans facing foreclosure. Nothing will help us more than making it possible for Americans to modify toxic mortgages in bankruptcy. Mr. President needs to act on the current catastrophe of foreclosures facing Americans.