As the country feels the weight of the current economic crisis, President Obama worked tonight to inspire hope and instill confidence that we can turn the economy around. In case you missed it, here is the full text of Obama’s speech.
As the speech began, it was covered by many so I won’t rehash the basics, but I did find a few points particularly interesting in Obama’s address to Congress:
- Little on Obama housing plan or mortgage relief plan specifics (I suppose we heard enough about these in the past week), but instead an emphasis on helping “responsible families” make their mortgage payments
- No rewards for flippers, liar loans or that neighbor that you can’t stand who stretched too far — clearly an effort to avoid the Rick Santelli syndrome.
- No mention of restoring the American Dream, despite that being a consistent theme of the campaign. I wonder if he thinks it’s no longer the dream?
- We won’t see recovery until we clean up the credit crisis and a heavy emphasis on getting banks lending again.
We know that there is a lot of frustration, finger pointing and blame about the state of the housing market, and apprehension about the government’s role and and ability to turn it around. Today was another step in a long campaign to convince Americans that it can be done, and that it’s our collective responsibility to ensure that it happens.
What did you think about Obama’s Address to Congress tonight? Let us know.
Legacy Comments
Obama did a good job this evening in terms of leveling off some of the edge folks are feeling re: the economy. Obviously, he has a huge task ahead of him. Will be interesting to see how the markets react in the AM.
Heather:
Yes, the economy is in poor shape and the real estate market is hurting, right now. I do no think anyone really knows what actions will lead to recovery or not. It is kind of like going to the doctor when you are sick – the doctor can’t quite figure out what is going on – all you know is you do not feel well – the doctor will prescribe a certain medication – if it doesn’t work he will prescribe another – until something works or nature takes its course and your body recovers on its own. I believe the current status of the economy is very similar. I have faith that ultimately we and the rest of the world will work its way out of this. It is like we were having a NYE’s party every day for the past 10 years – now we have woken up with a BIG hangover – it will take time and lots of water till we feel better.
The value of just about all assets have gone down – stocks 50%, housing 10% to 20% in solid areas and more like 50% to 60% in areas littered with sub-prime mortgages and foreclosures.
I think the bright light is that real estate actually has done fairly well all considered. I believe this is because a house is more than an investment – it is a place to live – and become part of the community – and therefore it provides a service and use to its owner – above and beyond just investment.
I feel this is a step in the right direction but I think there is still a long road ahead. Real Estate is will still be the safest investment to buy and hold. The real issues came from all of the bad loans and those trying to buy and flip the houses. It will be interesting to see how this all plays out in the next couple of years.