Obama Could Build a Win With Housing Plan

Sen. Barack Obama (D., Ill) might have found his winning issue in the general election while campaigning Tuesday in Las Vegas: his housing plan. Plummeting home prices hurt everyone.

Home prices show no signs of stopping their precipitous declines. The Case-Shiller Index, which tracks the home prices in the top 10 and 20 metropolitan real estate markets, recorded a 14.1% drop on a year over year basis when comparing the first quarter of 2008 to 2007. The largest drop ever recorded by the index.

Not only would aggressive action from the federal government aid the middle and working class, but it also would boost the stocks of banks, brokers and builders, too.

This pain proves real for homeowners and investors. Almost anyone who purchased in the last several years now finds their home worth less than their mortgage or negative equity. Foreclosures have risen at rates not seen in decades according to Realtytrac.com , including the highest rates coming in Nevada, California, and Arizona. Obama knows Nevada will be an important swing state come November.

Obama's housing plan addresses the housing problem from several perspectives. The total plan would cost $30 billion. $10 billion would aid struggling homeowners to avoid foreclosure; $10 billion would help state and local governments suffering the most from foreclosures. He has also pushed for modification to the bankruptcy, which would allow a judge to adjust a mortgage to help prevent foreclosure.

Obama supports the Dodd/Frank housing bill that has passed the House and Senate and awaiting final negotiations. McCain has said he would veto the bill. President Bush has similarly expressed doubt about the bill, preferring a laissez-faire approach.

« Previous Page

1 2 3

Next Page »