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Original Text:
US President Barack Obama has promised to lower mortgage costs, offer job-creating loans for small businesses, get credit flowing and rein in free-spending executives as he prepared to unveil a new strategy for spending billions from the second instalment of the financial rescue plan.
The strategy will be devoted to deciding how to spend the remaining half of the US$700 billion bailout that Congress approved last year to save financial institutions and lenders.
An announcement is possible this week on an approach that would unfreeze credit, helping families and businesses. The strategy is separate from those contained in Mr Obama's US$825 billion economic stimulus bill that is going before the Senate today after it passed in the House of Representatives without a single Republican vote.
At the end of a week that saw hundreds of thousands of people lose their jobs, Mr Obama also used his Saturday radio and internet address to tell Americans that "no one bill, no matter how comprehensive, can cure what ails our economy".
Mr Obama has seized on the grim economic news to push his stimulus bill, urging lawmakers to act boldly and overcome partisan divisions to counter a "devastating" crisis for Americans.
At the same time, he faces a problem over protectionist provisions in the bill that many fear could set off a trade war. Opposing the "buy America" measures, however, could set off a backlash from his supporters, particularly among labour unions.
During the final three months of last year, US gross domestic product recorded its worst downhill slide in a quarter-century, stumbling backwards at a 3.8 per cent pace, the government reported on Friday; that rate could accelerate to 5 per cent or more this quarter.
Treasury Secretary Timothy Geithner is trying to finish a plan to overhaul the bailouts begun in the George W. Bush administration. Mr Geithner has said the Obama administration was considering using a government-run "bad bank" to buy up financial institutions' bad assets. But some officials now say that option is gone because of the potential costs.
Many ideas under consideration could end up costing hundreds of billions beyond the original price tag. Aides would not rule out the possibility that the administration would seek more than the US$350 billion.
Mr Obama said Mr Geithner would soon announce a plan "for reviving our financial system that gets credit flowing to businesses and families. We'll help lower mortgage costs and extend loans to small businesses so they can create jobs. We'll ensure that CEOs are not draining funds that should be advancing our recovery".
The Bush administration's spending of the first US$350 billion of the package drew criticism because it went overwhelmingly to bankers.
Mr Obama's weekly message - largely repackaged from a week of White House statements - was as much for the country as it was for lawmakers: pass the separate American Recovery and Reinvestment Plan or things are going to get worse.
The Democratic president does not need Republicans for his economic plan and other initiatives to clear the Democratic-controlled Congress, but he has said he wants to introduce an era of bipartisanship.
Jon Kyl, the Republicans' second-ranking Senate member, said yesterday the party would flex its muscles by stalling the stimulus package without a fundamental rethink of the bill's mix of spending and tax cuts.
"I think that we would all agree there will be a 60-vote requirement for the bill. That's the end result of a filibuster," he said on Fox News Sunday, referring to a parliamentary tactic to drag out debate indefinitely. To overcome that, the Democrats would need to amass 60 votes to shut down debate and bring the bill to a vote. Mr Obama's party can now count on 58 votes to the Republicans' 41, with one seat still unresolved.
Group Commentary:
Background
This new is about Barack Obama is the first black president in United States of America. During the election campaign of the US president, the economic downturn had started. Barack Obama promised if he become the 44th US president, he will save the current economic situation by introducing his financial rescue plan such as lower mortgage costs, offer job-creating loans for small businesses and using a government-run to buy the bad assets from the "bad banks" etc. As we all know that he is the US president now. It is the time for him to show his ability how he can save not only the economy in USA, but also the wholewide economy as well.
The Summary of the story
The US president, Barack Obama proposed to spend around US$ 800 billions helping families and businesses. The Economic Aid packages including lower mortgage costs, extending loans for small businesses and creating job opportunities etc. This financial rescue plan was waited the Senate for approval. In order to make the bill approved in the Congress, the Democratic Party must reach 60 votes that is the minimumm requirement. Unfortunately, the Obama's Party now counts 58 votes, that is the financial rescue plan cannot run smoothly. If the Congress cannot get a consensus, the economic situation in USA get worse. The consequences may be vey serious.
Analysis
The issues raised from this news that we want to concern are:
1. The depression of the worldwide economy
2. Obama's Economic Aid Package can rescue the economic downturn.
3. What are the roles of different countries to solve this financial crisis?
In my opinion, everyone is unwilling to have economic depression. The most important way to solve the economic tsunami is to enhance international cooperation. The economic downturn is not only one country's problem, but also the whole world as well. Good foreign relationships can slove the problems easily. For example, China purchase the US bond so that the US government increase its mobile liquidity for development. Although the financial crisis cannot solve in a short period, the government should adopt some of the appropriate policies as soon as possible. Otherwise, other social problems or other consequences may come out. For example, bad economic mood may lead to crimes because people loss their jobs, the suicide rate may increase, people who are suffering psychological problems and also the mental health of people etc. As a result, we hope the Senate can get a consensus so that these policies can help people within a shorter period.
Questions
1. Comment on Obama's Economic Aid Package based on this new?
2. Besides the solutions which mentioned on this news, can you suggest other ways to improve the Economic downturn now?
3. From Obama's Economic Aid Package, which solution(s) do you think is(are) the best to rescue the economic downturn? Why?
For group A, the topic is Obama's Economic Aid Package. This new is exactly talking how Obama deal with the finical crisis. For the group’s background, it points out the important content of rescue package such as cut mortgage costs, offering job-creating loans for small businesses and buying bad asset. However, the end part of the background information is involved opinion of reader. “It is the time for him to show his ability how he can save not only the economy in USA, but also the wholewide economy as well”, it is an unreal statement. It is still a doubt whether he can rescue the economic of USA or not. Background information ought to be real information at all.
回覆刪除I agree with group’s opinion, if the government doesn’t dedicate to solve the problem. The consequence may be very serious. For example, crime rate may be higher, harmony of the society may be threatened and mental problem may be developed. Although the aid package is not the perfect solution to the crisis, it is better to do nothing and let the problem become worse. Besides, I believe Mr. Obama is a good president; the issue shows that he works at high efficiently and he is willing to shoulder the responsibility. I believe that the American has a bright future after the crisis. For us, the senior staff of our government should learn a lesson form him.
Comment by Ho Kai Ming(ID:50934566)
My Opinions are as follows:
回覆刪除The summary of the story is clear and precise. However, I would like to suggest using the wordings, such as “reviving the economy” or “encountering the financial crisis” to describe the purpose of the rescue package (instead of using the wordings of “helping families and businesses”). The reason for my suggestion is that the main aim of the package is to stablise the financial system and to save the worldwide economy at large (which may then in turn help families and businesses). Therefore, a general description is more suitable and appropriate than the specific wordings.
The background provided was enough for me to understand the promise of Obama to introduce the financial rescue package. However, in my view, emphasis must be put on the explanation of the financial situation of USA so that the readers may understand why the financial rescue package is necessary.
I fully understand the story because the summary of the story is clear and concise. Besides, the story concerns with the recent hot topic in the world, which is often repeated in different media, such as TV and radio.
The issues are correct; and I agreed with them. However, I would like to suggest two other issues:
(1) Role of USA banks in boosting economy activities – bank loans can ease cash flow shortage of many industries and businesses, and avoid them from closing down. With the steady employment rate, the economic activities can be accelerated, which may have a positive impact on economic growth. Therefore, the USA banks should raise their lending targets and loosen their lending in order to boosting the economy activities.
(2) Effectiveness of democracy – Obama’s financial rescue package is needed to encounter the economic decline. However, the package cannot be passed easily by the Congress because of the disagreement and conflict between the two political parties, namely democratic and republican parties. In contrast, the rescue package of China (being a communist country) can be formulated easily without any local arguments. The effectiveness of democracy is thus doubted. Therefore, in the light of the severe financial crisis, the two USA political parties should set aside their political difference for the benefit of the USA and world economy as a whole.
This group includes its opinion on the consequences if the bill is disapproved by the Congress. I agreed with it.
My response to this group’s questions are as follows:
(1) Based on this news, Obama’s economic aid package mainly concerns with extending loans to small businesses and creating jobs. I agree that these strategies will help boost the economic activities.
(2) Besides the solutions mentioned in this news, I propose to (a) strengthen investors’ confident by reviewing the structure of stock market and (b) encourage domestic spending by giving USA citizens subsidy on buying necessities.
(3) I think the best solution in Obama’s economic aid package to rescue the economic downturn is creating jobs because this solution has a positive chain effect on the economy. If jobs are created, employment rate can be reduced. With jobs, USA citizens are willing to spend money and invest in the stock market. The economic activities can be accelerated, which may have a positive impact on economic growth.
Commented by Joanna Mui
Full Name: Mui Ching Hung
Student No: 50205124
此留言已被作者移除。
回覆刪除To response with Group A, I think that Obama’s Economic Aid Package is quite thorough; it can meet different needs of different people. It extends loans to small businesses so they can create jobs, and that it can help the people who had lost their jobs because of economic downturn. In fact, since many factories and companies had closed because of poor economic, it is important that, if the government can do something for them, for example, creating more job vacancies, it will help them a lot. So, I think that it is the best way to rescue the economic downturn. Also, lower mortgage costs can help many companies with a lot of liquidity problems.
回覆刪除Besides the solutions which mentioned above, I think that it is also helpful if it can improve its tourism, for example, give some shopping discount to the tourists. As I know that, many Hong Kong people are interested in visiting U.S., if it can provide some discounts to the tourists, it may help the economic substantially.
It is a time for the U.S. current President, Obama, to show his ability for overcoming challenges.
Also, I agree with this group’s opinion, every country should cooperate together to overcome the economic downturn. It is very powerful that if every country can work together and work out the solution.
Commented by: Mandy kwok
Student ID: 51181445
Some comments for Group A. I think the information provided in Background is quite enough for me to understand the news and the things happening in US. The summary of the news is good for us to get into the news with fewer paragraphs.
回覆刪除From this news, we knew the president of US- Obama is counted by people to be the man who gonna save the US's economy. Whatever measures he takes is important to every US people and even people in the world. As many countries such as China are sellers to US. Once US down, many countries found difficulties as well. We can see that Obama is trying to save US's economy by spending huge sum of money to bailout companies and create opportunities to people. The effects of these aid package might not been seen in fews days but in long term. While some critics claimed that the plans taken by Obama are a little bit too optimistic. In my point of view, Obama is on the right track. He must do anything to save US no matter the plans have just a little effect or even no. I just know if US government stop bumping money, everything will be worse.
The issues stated by group A are right, they pointed out the problems in US correctly. Co-operation among countries is really important to each members in the world.
Commented by Joe Wong
SID:50747318