Obama's Bank Rescue Plan

By
Real Estate Agent with The Broker Network of Central Oregon

President Obama's bank rescue plan will be unveiled Tuesday by Treasury Secretary Timothy Geithner.  The plan, scheduled to be released on Monday, was delayed due to the expected vote in the Senate on the latest Stimulus Package. The bank rescue plan is rumored to rely heavily on private sector funding backed by government guarantees and financing incentives.  It may also include some of the $350 billion in unused T.A.R.P. money.  

The Obama administration has not ruled out the creation of a "Bad Bank", much like the one created during the Savings and Loan Crisis, to buy up illiquid assets on lenders books.  This option proved to be profitable in the long run last time.

Geithner is also expected to expand $200 billion in Federal Reserve funds in hopes of loosening up credit for U.S. consumers.

With all this being said, Tuesday is going to be a very important day for all of us.  The unveiling of the bank rescue plan strikes at the core of our slumping industries problem; access to credit.  How the stock markets, investors and consumers react to this plan will determine how long the housing market will struggle. Without credit, the blood of our industry, the housing market will remain lifeless.  

If this plan is widely accepted by investors and supported in a bipartisan fashion, coupled with the $15,000 home buyer tax credit, then I will be optimistic about our near future in the housing market.  If the bank rescue plan fails to impress and President Obama and Treasury Secretary Geithner can not garner support for their plan, I do not foresee an end to our housing crisis.

We need credit to flow freely in the market.  I hope President Obama understands the importance of this crucial issue and does what's right for the U.S. economy. The U.S. economy runs on credit and without it, well just look where we are.  I will be tuned in on Tuesday, hoping for a knockout.

 

Troy Batson is a Licensed Broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ Bend, Oregon

 

 

 

 

 

 

 

  

 

 

 

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Rainmaker
1,359,819
Vickie Nagy
Vickie Nagy, Broker Associate Realty ONE Group BMC Associates | BRE#01363932 - San Ramon, CA
Broker for San Ramon, Danville, Dublin, Pleasanton

This is absolutely awesome news! I can't wait to hear the plan, and I am so hopeful about the $15,000 first time home-buyer credit!

Feb 08, 2009 07:47 PM #1
Anonymous
Anonymous

I hope its great news, in times like this we have to be optomistic...and the $15,000 credit would also be nice!  I heard that first time buyers dont have to pay that back, right???

Feb 08, 2009 07:58 PM #2
Ambassador
532,212
Konnie Mac McCarthy
The Majestic Group - Mc Lean, VA
Associate Broker - VA & MD

All I know is this had got to get better...I do believe we have seen the worst of it (or do I have rose colored glasses on :)

Feb 08, 2009 08:00 PM #3
Rainmaker
452,646
TIM MONCRIEF
Bartlett Real Estate Group, llc - Austin, TX
$44,530,000 2013 Production (breg)

One day we will all find out what was reality and was not reality in the "bank bail out".  After seeing what we went through with the panic need for immediate cash "that week" from the previous administration, we are seeing more of the same.  i.e.  I have zero faith in our leadership and belief in what they are saying is true.  This will all pass this week, but we will find out in time if we were once again cheated out of our money by panic.

At this point money is flowing.  I just submitted for a $50k line of credit for my business and got it quite easily without any personal assets to back it.  It just got me to wonder if I got this so easily from a real estate company, is what we are being told true?  Just a thought........

Feb 08, 2009 08:12 PM #4
Rainer
6,468
Sharon Wilson
Free Real Estate Ads Online - Plantation, FL

You can only hope we have seen the worst of it, I'm not so sure we have however.

Feb 08, 2009 08:32 PM #5
Anonymous
Anonymous

i wish the government would stay out of the way, let us take hold of this and move forward.  I don't believe creating a debt my grandchildren (I'm 27) are going to have to pay back on a dollar that is worth squat because of over spending and not being good stewards is the best option.  Let America find its way and let the government govern the way we go.  We don't need the government pushing us a certain way.

Feb 08, 2009 08:41 PM #6
Rainer
29,656
Jay Williams
Greenville, NC - Greenville, NC
Mortgage Loan Officer - Getting You The Right Loan

Troy, I will also be interested in the tone of Obama's press conference Monday night. A lot of big money programs being discussed, but not analyzed , in my opinion.

Jay

Feb 09, 2009 06:03 AM #7
Anonymous
carolina guy

ahh yea great news

carolina forest

Feb 09, 2009 06:55 AM #8
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Troy Batson

Bend, Oregon Real Estate
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