01-18-08

President Bush today gave some detail for his economic stimulus package for 2008. The goal of this package is to hold off and prevent a recession from taking foot. There are a number of factors as to why we are in the situation we are in now however the largest single most impacting event has been the mortgage melt down. Billions and billions where lost due to bad lending practices getting people into loans they can not afford such as stated, no doc, and subprime arms. Now that these loans are adjusting more then 2 million Americans are now in some form of default or are making late payments on their mortgages. Those not in default are finding that their total costs including their mortgage as gotten more expensive and therefor have less money available for the consumption of goods and luxury items. This in turn hurts companies and their earnings which further puts downward pressure on our economy which effects the job market and so on.

Bush's Proposals today Include:

1.Tax incentives for Business
2.Income tax relief allowing people to keep more of their money
3.Signing a FHA bill to help reform FHA and help people keep their homes

Yesterday the Fed Chairman Bernake urged that immediate aggressive action was require to save the economy from recession. We will determine within the next few months if these ideas pan out or have any major impact on the economy.