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Obama's Address Urges Nation to Move Forward

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By : Adam Robinson    99 or more times read
If nothing else, Obama's address to Congress was a much needed band aid applied to the wounds of the American public, along with a kiss on the forehead, and the promise that "things will be better tomorrow".

He acknowledged that the economy was in crisis and he was aware of the challenges that every American was facing. His message was built around hope and the promise that "We will rebuild, we will recover, and the United States of America will emerge stronger than before."

He described the country's current economic situation as the result of a combination of factors that occurred over a series of years, preceding the market collapse:

- The high cost of healthcare
- Inadequate education standards that have prevented graduates from competing in global economy
- Poor planning for future needs of the country
- Irresponsible lending practices
- Living beyond our means at an individual and government level

His plan of attack works to reverse these wrongs, take steps to prevent them from reoccurring, and eventually create a stronger, healthier nation going forward. In part, the recovery plan includes the following goals:

- Increase job creation by reinvesting in education, health care, solar powered construction industry, mass transit, and law enforcement.

- Stimulate the real estate market by providing assistance to lenders.

- Offer housing plan designed to assist millions of homeowners threatened with foreclosure.

- Hold banks accountable for all monies received. Among other stipulations, they are expected to provide evidence that the funding is increasing lending accounts.

- Health care and Social Security reform.

- Tax cuts for 95% of working families. Those making over $250,000 a year will see fewer tax breaks.

- Remove tax breaks for work contracted out overseas.

- Double the country's supply of renewable energy in the next three years and support research to develop new technologies.

With credit being the basis for the whole economy, this recovery plan is based on giving the public the confidence to get off the fence and purchase that new home or car they've been putting off.

Obama goes on to state,"That is why this administration is moving swiftly and aggressively to break this destructive cycle, restore confidence, and re-start lending."

He emphasized the analogy that out of every tragedy comes something positive, and sited the example of a town in Greensburg, Kansas that was destroyed by a tornado.

“The tragedy was terrible,” said one of the men who helped them rebuild. “But the folks here know that it also provided an incredible opportunity.”

Recently, The Wallstreet Journal reported that the combination of declining home prices and low interest rates in many markets, are making it more attractive to own a home than rent. Green Street Advisors, a real estate firm in Newport Beach, California, reported that in the last 18 years, mortgage payments averaged between 26 and 66% more than rent. By the end of 2008, the average monthly rent for the key 50 metropolitan areas was $1,045, compared to the after-tax mortgage payments of $1,300 – a difference of only 24% more than rent payments.

If interest rates fall to 4.5%, which a number economists are predicting, then mortgage payments would only be 14% higher than rent payments.

American's have been so overwhelmed by this crisis, that many, unfortunately, can't see the opportunities that may be sitting in front of them. Obama's recovery plan may not solve all the nation's problems, but it may provide the boost that American's need to get back in the ring.
Get free access to listings for hundreds of Sarasota foreclosures at Adam Robinson, REO Specialist can assist you in locating bank owned real estate in Siesta Key Florida.

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