Michigan struggles with foreclosures and waiting for the magic touch of Obama
July 30th, 2009
Michigan has the highest unemployment figures in the nation. Struggling with this and foreclosures it is looking up to the Obama administration for the magic touch. They are hoping that during Obama’s first visit to the state as president he will say something positive about the two things they want to hear about most – remedies for foreclosures and job losses.
Obama in the first week of October 2008. Since then the situation has worsened. Unemployment figures have increased by 5% to touch 14.1% as 245,000 jobs have been lost. This is inclusive of 50,000 jobs swallowed up in the automobile manufacturing sector. General Motors and Chrysler have undergone bankruptcy. Many in the state are not happy about this strategy that they have dubbed as a dubious move.
The Obama government has come forward to give help to Michigan. An auto recovery tsar has bee appointed and the state has been visited by innumerable cabinet secretaries to provide positive ideas about recovery. Tom Vilsack, the agricultural secretary recently visited the state. The department of commerce is having powwows with some manufacturers close to Detroit on how the government can give a boost to business in Michigan.
Talking about Obama’s upcoming first visit as President, economist Patrick Anderson of East Lansing said, “This is the first time the president of the United States has come to Michigan not only as the leader of the free world, but as the chairman of General Motors.” Anderson added that it was a great opportunity for the President, who is a Democrat, to bring back confidence to the giant auto units – General Motors and Chrysler. After the bankruptcy trauma they have both emerged slimmer and should now be able to move with speed. Anderson added, “He essentially told consumers that they were failures, and he was going to let them go bankrupt. You can’t combat that with a few tax incentives. … He needs to turn that rhetoric around right now.”
A town hall type of meeting is scheduled for Obama in the suburbs of Detroit – Warren. It is the technical centre of General Motors and many other plants under its umbrella. Although plans are taking off for production of a small car, the layoffs are continuing apace. For weeks the auto plants have been idle as demand is extremely weak. Many retirees feel that making the twin giants undergo bankruptcy had been the right step.
- Foreclosure Numbers Are Increasing Leading to More Homelessness
- Activist Shifts Those Without Shelter Into Foreclosed Houses
- There Were Early Signs of Foreclosure Crisis Brewing in Florida
- Foreclosures Can Do Great Harm to Credit Scores
- Collier County Persuading Banks To Maintain Foreclosed Houses
- The Horrific Reality of Abandoned Foreclosed Houses
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