Washington Post — New Mortgage Plan to Focus on Lowering Payments
The $50 billion plan President Obma will roll out on Phoenix today is being touted as an example of fiscal restraint by Democrats and White House sources, but the real fight may be over the fine print of the deal that would change the way debtors and creditors interact.
Writer Renae Merle sketches some of the most controversial components.
“A key part of the administration’s package is expected to be legislation changing the bankruptcy law to allow judges to modify the mortgages of distressed homeowners, including by reducing the principal of the loan to the property’s current market value. About 150 consumer bankruptcy lawyers descended on Capitol Hill last week to lobby for the measure. It has already passed a House committee, but faces fierce opposition from the financial services industry and Republicans.”
Wall Street Journal — GM Seeks $16.6 Billion More in U.S. Aid
Writers John Stoll, Sharon Terlep and Alex Kellogg provide a clear-eyed assessment of not just the costs of the proposals from GM and Chrysler to the Obama administration.
Their prognosis is not very good even if they get the bushels of more money the companies want.
“GM’s recovery plan is the latest in a series of restructuring moves implemented by [Rick] Wagoner since taking the company’s helm in 2000. In his first year in office, he killed the Oldsmobile division. But Mr. Wagoner was able to avoid a deep overhaul until 2005, when a combination of escalating labor costs and a decline in sales of profitable sport-utility vehicles collided to bring the company to a $10.6 billion loss. In late 2005, Mr. Wagoner announced tens of thousands of job cuts.”
Time — Obama’s Yes-We-Can War: 17,000 More Troops to Afghanistan
The president’s decision to beef up troop levels in Afghanistan seemed to be politically popular in the short term. But with Iraq still coming in for a shaky landing, making a big bet of Afghanistan could have long-term consequences for the White House.
Writer Mark Thompson neatly sums up the new administrations move to double down on Afghanistan and how the conflict has now become “Obama’s war.”
“If Army General David McKiernan, the U.S. commander in Afghanistan, gets his way, the total increase over the coming year will be 30,000. McKiernan has said he needs to beef up U.S. forces in Afghanistan to roll back a growing Taliban insurgency, especially before the presidential election currently slated for August.”
Obama’s War on Terror May Resemble Bush’s in Some Areas
Writer Charlie Savage smartly wraps up all the was in which the new administration resembles the old when it comes to terror fighting. It seems that receiving the President’s Daily Brief was more than enough to chuck some overheated campaign rhetoric about anti-terror tactics. The result has been wary approval from conservatives and increasing concern among liberals.
Aside from retaining rendition and a broad definition of the legal term “battlefield,” Team Obama is still treading water on several other controversial issues.
“The administration has also put off taking a stand in several cases that present opportunities to embrace or renounce Bush-era policies, including the imprisonment without trial of an “enemy combatant” on domestic soil, Freedom of Information Act lawsuits seeking legal opinions about interrogation and surveillance, and an executive-privilege dispute over Congressional subpoenas of former White House aides to Mr. Bush over the firing of United States Attorneys.
Chicago Sun Times — House speaker Madigan refers Burris case to prosecutor
As the editorial pages Chicago Tribune and the Washington Post both call for Sen. Roland Burris’s resignation, writer Dave McKinney explains how Illinois may yet again be in the market for a new Senator even if Burris won’t go quietly.
“Sangamon County State’s Attorney John Schmidt said today he is now reviewing sworn testimony submitted by U.S. Sen. Roland Burris as part of a possible perjury investigation.”
Los Angeles Times — California budget negotiations hit a new snag
California’s budget impasse looked like it was headed for a solution unsatisfactory to all, but on the night before 20,000 state workers got their pink slips, the political process broke down yet again.
Writers Eric Bailey and Patrick McGreevy explain how the standoff could have serious national implications.
“As California’s government continued its grinding downshift toward insolvency, efforts to close the state’s nearly $42-billion budget gap hit a new snag late Tuesday as Republicans in the state Senate ousted their leader.”
