Obama reveals bank plan, Senator Shelby opposes

The Obama Administration on Tuesday rolled out part two of what he calls a three-legged stool.

It's a new plan to help banks shed debt so they can lend more money.

The president's back on the road telling Americans we need to act fast to create jobs.

Meantime in Washington, republicans argue moving too fast could lead to some of the same problems we saw last fall with the bank bailout.

The government's setting up a public-private investment fund to buy bad debt that could grow to a trillion dollars.

"I want to be candid: this comprehensive strategy will cost money, it will involve risk, and it will take time," said Treasury Secretary Timothy Geithner.

It's also expanding the Federal Reserve's lending for consumer loans by another trillion so banks will have more money to help Americans buy homes, cars and pay for college.

"We have to both jump-start job creation and private investment, and we must get credit flowing again to businesses and families," said Secretary Geithner.
The jobs plan, the 838 billion dollar stimulus, passed in the Senate Tuesday with help from three republicans.

It's borrowed money and republicans say the interest alone is too expensive.

"700 billion, just to keep creditors from knocking on our door" said Kentucky senator Mitch McConnell a republican. "Just do something' shouldn't be an excuse to waste tax dollars."
President Obama's back on the road trying to sell his plan.

He was in Fort Myers, Florida where 30,000 families are facing foreclosure.
"We are going to do everything we can to help responsible homeowners here in Fort Myers and other hard-hit communities stay in their homes," said President Obama.

That's part three, after Congress deals with the stimulus and the bank bailout.


U.S. Senator Richard Shelby (R) Alabama, who is a ranking member of the Senate Banking Committee is opposed to the President's bill.

" This so-called stimulus package is a disgrace and represents a continuation of government's unfocused response to our economic problems," he said in a statement. "Until we resolve the challenges facing our financial system, our economy will not recover and we will continue to waste the taxpayer's money and steal from future generations. Getting credit flowing again will create and sustain more jobs than any stimulus package ever has or ever will, in my judgment."

Shelby said, "Simply 'doing something' is not a viable strategy and has not improved our situation thus far. We should focus instead on knowing what we are doing.  Government's floundering only compounds our nation's difficulties."