Today, the head of the European Union slammed President Obama's plan to spend nearly $2 trillion to push the U.S. economy out of recession as "the road to hell" that EU governments must avoid. The San Francisco Chronicle followed the story and went over how other European countries reacted to the comments made. President Obama is said to visit Europe next week to thrash out reforms to the global financial situation. The United States is concentrating its efforts on economic stimulus and and plans to spend heavily to try and lift itself out of the recession with a $787 plan of tax rebates, health and welfare benefits, and extra energy and infrastructure spending. The plan also includes spending $1 trillion on the banks' "toxic assets" in order to get the banks to loan money again.The LA Times explains the plan from Obama's Administration presented by Treasury Secretary Timothy F. Geithner. He told Congress on Tuesday that the government neededed broad new powers to seize and dismantle large financial institutions that would seriously damage the economy if it were to collapse. The plan would give AIG money to prevent it from going bankrupt because it is such a big insurer.
On another note San Diego Tribune focuses on the increasing levels of unemployment. California's unemployment rate will soar to between 12 to 15 percent by next spring and remain until at least the beginning on 2012. A directory of UCSB forecasted that "this will be a nasty recession, but not a depression, although the possibility that we could get to a depression has increased." It is also predicted that the economy will worsen regardless of Obama's plan to keep or create new jobs for another two years.
Photo: Timothy Geithner, U.S. treasury secretary, left, and Ben S. Bernanke, chairman of the U.S. Federal Reserve, look over papers before a House Financial Services Committee hearing.
Ivan Lopez
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