Obama proposes relief for homeowners
NEW YORK (AP) - March 27, 2008 "We do American business - and the American people - no favors
when we turn a blind eye to excessive leverage and dangerous
risks," Obama said.
The presidential candidate spoke not far from Wall Street, hard
hit by the mortgage meltdown and credit problems.
To fix the economy, Obama proposed relief for homeowners and an
additional $30 billion stimulus package to address the nation's
economic woes.
"If we can extend a hand to banks on Wall Street, we can extend
a hand to Americans who are struggling," he said.
New York Mayor Michael Bloomberg, the almost candidate,
introduced Obama but stopped short of an endorsement.
Bemoaning the nation's economic woes, Obama dismissed Republican
rival John McCain's approach as pure hands-off. On Tuesday, McCain
derided government intervention to save and reward banks or small
borrowers who behave irresponsibly though he offered few immediate
alternatives for fixing the country's growing housing crisis. Obama
said McCain's plan "amounts to little more than watching this
crisis happen."
Instead, Obama said, the next president should:
-Expand oversight to any institution that borrows from the
government.
-Toughen capital requirements for complex financial instruments
like mortgage securities.
-Streamline regulatory agencies to end overlap and competition
among regulators.
Obama's Democratic rival Hillary Rodham Clinton planned a speech
on the economy Thursday in Raleigh, N.C.
Even before Obama finished his speech, McCain said in a
statement, "there is a tendency for liberals to seek big
government programs that sock it to American taxpayers while
failing to solve the very real problems we face."
The political debate comes as a new government report shows the
economy nearly sputtered out at the end of the year and is probably
faring even worse amid continuing housing, credit and financial
crises.