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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?
