Obama tries to fulfill his promises, making a change. So far, he has closed Guantanamo (Bravo!), injecting some funds to the collapses financial institution (debatable..some people are pro to this action but others are contra. And, now he is going to launch tax-cuts. Besides, he is planning to give a financial support for some states to prevent them from the negative effects of the economic crisis. It seems, from now on the governmnet will have much more intervention. Will the US be a socialist country ("socio-democrat" as it is practiced in the Western European countries?
Here is an article by Anne Davies.
BARACK Obama will this week deliver the most important speech of his youthful presidency when he tries to reassure Americans that his economic strategy is sound, even as the pressure builds to nationalise some of the US banks or take large stakes in them.
According to The Wall Street Journal, Citigroup is in talks with federal officials that could result in the US Government owning between 25 and 40 per cent of the struggling bank.
Bank of America, which is also rumoured to be fragile, has denied it has sought a further injection of federal funds.
Although it is not formally a State of the Union address, because he has been in office for just over a month, Mr Obama will address the nation on Tuesday (Wednesday noon Melbourne time).
The stimulus package, a foreclosure amelioration package and the bare bones of the bank bail-out mark II are in the public domain. Mr Obama must now convince the American public that these measures will work.
Overnight, Australian time, he will lay claim to the mantle of fiscal responsibility when he details his plan to cut the US deficit from $US1.6 trillion ($A2.4 trillion) in 2009, or 10 per cent of gross domestic product, to a third of that level by 2013.
The plan will rely heavily on winding back spending on the Iraq war and ending Bush-era tax cuts for those earning more than $US250,000. Under US law, the tax cuts to the wealthy will lapse unless they are renewed in 2010.
Mr Obama's job will be to balance being frank about the problems with not frightening the markets further, even though few believe the US economy has touched the bottom of this recession.
Top of the list will be his attitude towards nationalisation. The very whisper of the word has been enough to send the share price of the major banks tumbling in the past week. Citigroup's shares hit $US2 on Friday, after the Senate banking committee chairman Chris Dodd seemed to leave open the door to nationalisation.
The White House has ruled it out - for now. "This Administration continues to strongly believe that a privately held banking system is the correct way to go," White House spokesman Robert Gibbs said on Friday.
Meanwhile, Secretary of State Hillary Clinton has been seeking to shore up US access to credit during her visit to China, telling her hosts: "We are truly going to rise or fall together."
"Our economies are so intertwined," Ms Clinton said in an interview with Shanghai-based Dragon Television, "it would not be in China's interest" if the US were unable to finance deficit spending to stimulate its stalled economy.
Louisiana governor Bobby Jindal, a rising star in the Republican Party, said he would reject $US100 million aid for unemployment benefits for his state because it would cost the state more in the long term. In contrast, California governor Arnold Schwarzenegger, also a Republican, praised the package, saying it was necessary for California's recovery.
Mr Obama plans to announce overnight that former Secret Service agent Earl Devaney, who helped expose lobbyists' corruption at the Interior Department, is his pick to oversee the $US787 billion economic stimulus plan as chairman of the new Recovery Act Transparency and Accountability Board.
Here is an article by Anne Davies.
BARACK Obama will this week deliver the most important speech of his youthful presidency when he tries to reassure Americans that his economic strategy is sound, even as the pressure builds to nationalise some of the US banks or take large stakes in them.
According to The Wall Street Journal, Citigroup is in talks with federal officials that could result in the US Government owning between 25 and 40 per cent of the struggling bank.
Bank of America, which is also rumoured to be fragile, has denied it has sought a further injection of federal funds.
Although it is not formally a State of the Union address, because he has been in office for just over a month, Mr Obama will address the nation on Tuesday (Wednesday noon Melbourne time).
The stimulus package, a foreclosure amelioration package and the bare bones of the bank bail-out mark II are in the public domain. Mr Obama must now convince the American public that these measures will work.
Overnight, Australian time, he will lay claim to the mantle of fiscal responsibility when he details his plan to cut the US deficit from $US1.6 trillion ($A2.4 trillion) in 2009, or 10 per cent of gross domestic product, to a third of that level by 2013.
The plan will rely heavily on winding back spending on the Iraq war and ending Bush-era tax cuts for those earning more than $US250,000. Under US law, the tax cuts to the wealthy will lapse unless they are renewed in 2010.
Mr Obama's job will be to balance being frank about the problems with not frightening the markets further, even though few believe the US economy has touched the bottom of this recession.
Top of the list will be his attitude towards nationalisation. The very whisper of the word has been enough to send the share price of the major banks tumbling in the past week. Citigroup's shares hit $US2 on Friday, after the Senate banking committee chairman Chris Dodd seemed to leave open the door to nationalisation.
The White House has ruled it out - for now. "This Administration continues to strongly believe that a privately held banking system is the correct way to go," White House spokesman Robert Gibbs said on Friday.
Meanwhile, Secretary of State Hillary Clinton has been seeking to shore up US access to credit during her visit to China, telling her hosts: "We are truly going to rise or fall together."
"Our economies are so intertwined," Ms Clinton said in an interview with Shanghai-based Dragon Television, "it would not be in China's interest" if the US were unable to finance deficit spending to stimulate its stalled economy.
Louisiana governor Bobby Jindal, a rising star in the Republican Party, said he would reject $US100 million aid for unemployment benefits for his state because it would cost the state more in the long term. In contrast, California governor Arnold Schwarzenegger, also a Republican, praised the package, saying it was necessary for California's recovery.
Mr Obama plans to announce overnight that former Secret Service agent Earl Devaney, who helped expose lobbyists' corruption at the Interior Department, is his pick to oversee the $US787 billion economic stimulus plan as chairman of the new Recovery Act Transparency and Accountability Board.
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