From The Times
February 18, 2009

Barack Obama gambles billions to save homes and jobs

Tim Reid in Washington

President Obama will reveal a plan today to stem the flood of home repossessions afflicting millions of American families after signing his $787 billion economic stimulus package into law last night.

Amid persistent concerns among investors about the Obama Administration’s ability to turn around the US economy the global markets fell again. At close of trading the Dow Jones index had dropped almost 300 points, nearing its lowest level for a decade.

The Bill – the biggest government intervention in the US economy since the 1930s New Deal – was passed by Congress in only three weeks, although with almost unanimous Republican opposition. A spokesman for Mr Obama, when pressed, did not rule out a second stimulus Bill.

Yesterday’s plan is the centrepiece of Mr Obama’s domestic legislative agenda aimed at boosting job creation and reviving the stricken US economy. It will be an important factor in determining the fate of his presidency.

Mr Obama has pledged repeatedly that the package will create or save 3.5 million jobs within two years. The White House even released job targets for each of the 435 US congressional districts. It is a list that could come back to haunt the President if his pledges are not realised by the mid-term elections in November 2010.

Invoking Winston Churchill, Mr Obama said that the Bill would not end the economic problems of the US – “but today marks the beginning of the endâ€