February 17th, 2009
10:16 AM ET
13 years ago

Obama expected to announce foreclosure plan

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/02/17/obama.foreclosures/art.economist.cnn.jpg caption="Economist Peter Morici said $50 billion to $100 billion won't be enough to solve the mortgage crisis."]

(CNN) - President Obama on Wednesday will visit Phoenix, Arizona, one of the cities hardest hit with foreclosures, where he's expected to outline a $50 billion to $100 billion plan to help homeowners.

Though administration officials are tight-lipped about details, one idea that has been floated is for the federal government to reduce monthly mortgage payments by modifying loans.

Sheila Bair, the U.S. FDIC chairwoman, has advocated reducing payments to between 31 and 38 percent of a family's gross income.

"This crisis in housing has devastating consequences, and our government should have moved more forcefully to help contain the damage," Treasury Secretary Timothy Geithner said Monday.

"You're going to learn about [the administration's plan] as the rollout continues," said Jared Bernstein, Vice President Joe Biden's economic advisor.

Bernstein said it will be a "very aggressive plan to help responsible homeowners stay in their homes."

Full story


Filed under: Economy • President Obama
soundoff (135 Responses)
  1. Richard

    First of all, the market is falling mainly because those idiots realize there free rides and over paid lifes are over. 2nd, while i agree that the welfare system needs to be revamped i.e. in order to qualify for benfits, u need to be working, some of you are idiots and greedy losers. I dont like paying for bums to suck on the welfare nipple but untill the goverment steps in and changes things, it will ALWAYS be this way. Now to those that think spending your "hard earned" money, dont you realize that spending money is how the economy works. Theres no economy if you dont spend money, that simple. So please, go back to eating your bowl of stupid flakes! And for those that want a reward since u were smart enough to stay in your means when u bought your house, your reward is...KEEPING YOUR HOUSE MORON!

    February 17, 2009 02:43 pm at 2:43 pm |
  2. An American

    They also need to address the issue of bringing homse back up to the price they were purchased at – people are paying for homes that were bought at a cerarin price and are paying on that loan but their home is no longer the same price – it is much, much lower. Should all just stop paying and let our homes go into foreclosure in order to get justice.

    February 17, 2009 02:52 pm at 2:52 pm |
  3. Johnny (for Karen)

    Wow. Very well written, Karen. You write about as eloquently as your thoughts are lucid. "Pushing a stimulus" and "putting in a bailout" are hardly a measure of success, no more than jumping off a building is proof of flight. Lets see how these plans turn out down the road before you go declaring victory that our President has done anything at all.

    This partisan nonsense is why our country is where it is politically. The Obama supporters - without ANY detailed knowledge whatsoever of what he is trying to do - will blindly cheer and defend his policies to the death. Granted, the haters on the other side will likely prematurely condemn him similarly.

    I find the support comments more comical than anything out there today. "GO OBAMA LOLOLOL DUMM REPUBS!! LOLOL." Bravo.

    February 17, 2009 03:01 pm at 3:01 pm |
  4. Give me a break!

    Just wondering...did the Republicans have a plan? Notice that Ms. Blair said it should have happened "a long time ago." Like MONTHS ago, Mr. Bush, when you were sitting in the Oval office doing nothing! Just imagine how much grief you could have saved...similiar to the grief of all those brave men and women who died in your illegal war. Yes, I blame the Bush administration (or lack thereof) for both of these problems and SO WILL HISTORY!

    February 17, 2009 03:02 pm at 3:02 pm |
  5. Louis

    MORE MONEY TAKEN FROM SMART HARD-WORKING TAXPAYERS AND GIVEN TO IRRESPONSIBLE PEOPLE.

    February 17, 2009 03:06 pm at 3:06 pm |
  6. amber-fl

    hey losser .......you sound like a your a wall street bafoon....
    get real and please cnn only acknowledge people that make sense...
    and yes we need help now.. and I'm not on welfare yet!

    Andy J, Upstate NY
    GET YOUR HANDS OUT OF MY POCKET AND LEAVE MY PAYCHECK ALONE. I WORK HARD FOR MY MONEY AND I'LL GIVE IT TO THOSE I SEE FIT. IT SURELY WON'T BE DEADBEAT WELFARE ABUSERS WHO DONT WANT TO HELP THEMSELVES

    February 17, 2009 03:08 pm at 3:08 pm |
  7. Matthew, Detroit

    Karen. Hole in the gound H O L E.
    Karens whole world is crashing down on her W H O L E.

    You are banished and no longe get to post. Go back to MSNBC.

    February 17, 2009 03:16 pm at 3:16 pm |
  8. Paul CA

    I would go for give my money alone ( no taxes) I will manage my paycheck....(like many are saying on these blogs) I also hear a lot.....I have bought my small house in between my meanings.......the problem is that the economic mess is soo deep....,many could lost their job (no pay check period to manage) you will be screaming for help as well....ahhh to whom you will turn for help? your republican buddy?......not.....the government of course.....so stop been selfish and think about others misery.

    February 17, 2009 03:25 pm at 3:25 pm |
  9. W Stewart

    I have seen these same identical responses somewhere. Where was it...? Oh, I rember now. When Clinton took office and gave his economic recovery plan. Yeah, we were in a reccession then. Wierd, people said the same disgruntled song. I believe we were showing a surplus when he left office too. Odd how history repeats itself. Calling their President idiots never did have a positive effect either. If you think you can do better, throw your hat in the ring or quit crying. Sound like children wanting things but doing nothing to earn it. Find a crying towel and get over it.

    February 17, 2009 03:52 pm at 3:52 pm |
  10. ben

    hows this for a plan americans. let the government jerk our rights right out from underneeth our wonderful nation. it doesn't matter if your republican or democrat its all comming crashing down. the only way to solve this iriversible problem now is to unite with all the other countries of the world, (who care nothing about our constitution and our rights by the way) and have a one world government. which is exactly wut our elected officials want. thats why we borrow from these countries so we are enslaved to them. so much for our wonderful nation under GOD! we are chaseing Him away. lets ask forgiveness and put Him back were he belongs. (and i don't mean unite church and state).

    February 17, 2009 07:31 pm at 7:31 pm |
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