Short Term Loans Making a Mark on American Budgeting

Obama’s stimulus plan

Short term loans are still viable options for qualified Americans as the economy slowly recovers. Senator Ben Nelson of Nebraska stated, “Over the first 100 days of Obama’s presidency, the nation has shown patience with his approach toward the economy. Over time, the public will watch three key numbers – unemployment, the stock market and the deficit.” It’s estimated that only the stock market will truly show some quick resolution. Unemployment is expected to reach 10% by the end of 2009 and the deficit is well on its way to $1.2 trillion according to projections.

Consumer approval

According to the AP, 41% of Americans disapprove of Obama’s deficit plan, which is his highest disapproval rating since the beginning of his presidency. Surveys show that people are closely watching government spending and how much of deficit in budgeting exists. With the approximated costs skyrocketing, this could prove detrimental to Obama’s future approval ratings.

Health care costs

The president is focusing on a reworked health care system, hoping that it will be the answer to the Medicare and Medicaid issues. Jared Bernstein, chief economist for Vice President Joe Biden, stated, “The big ticket, that’s health care. That’s where some of our real savings come from in the long term. “It was released recently that Medicare and Social Security funds are quickly dwindling, making them potentially obsolete sooner than originally calculated. This is another sensitive issue the president will have to maneuver to get through his leadership unscathed.

The economy

Federal Reserve Chairman Ben Bernanke believes that the economy will see growth later this year, taking the growth in real estate sales and increased spending as indicators. He did warn however that activity will revive, but may not reach its former levels until well in the future. Unemployment is seen as the key factor in a true economic turnaround. Said Bernanke, unemployment “could remain high for a time, even after economic growth resumes.” Single-income households are waiting with baited breath for an upswing in the economy but in the mean time are looking to short term loans as an option for immediate cash needs.

Although there is hopeful news on some fronts, it is important to remember that it will still be difficult for President Obama to sway Congress in his favor. Any new tax hikes will be seen as additional stresses on tax payers. This could be difficult to gain Congress’ support, much less the support of the American people. Robert Shapiro, chairman of Sonecon, agreed by saying, “The problem, the challenge for the administration, is that they don’t just need tolerances or slack from the public, they need sufficient support to drive very difficult policies through Congress.”

Short term loan options

The three factors, unemployment, the stock market and the deficit, are all weighing heavily on the minds of consumers. Until there is a true improvement in all three, the recession may continue to hang on longer. Policies and procedures are being revamped to improve the economy, but whether or not they will be truly beneficial has yet to be seen. In the mean time, consumers are looking to short term loan options as a potential answer to their money problems. Until the recession is over, they may be the most reliable way for qualified customers to find funding.