Homeowner's Blog

President Obama outlined new incentives to ease the unemployment and strengthen the economy on December 8. Among the components are a "cash for caulkers" proposal that would provide tax incentives for home weatherization. With only the slightest progress towards economic and job recovery so far, it was important to the national psyche that the President reaffirm the commitment to whatever steps are necessary to avoid risks of further economic erosion, and to create confidence that more will be done to start reducing unemployment. It was also important to the national psyche that the President reaffirm that some of the repaid TARP funds will be allocated to budget deficit reduction, an objective that is critical to our long term economic health.

Congress won't start seriously looking at the President's recommendations until early next year. That's also appropriate, because we'll then have a better idea of how the funds from the previous stimulus package that are only now beginning to impact the marketplace are working, and Congress will be better able to gauge how to balance deficit reduction goals with the need for more stimulus as it exists at that time. Best news of all would be that the current stimulus program is beginning to significantly reduce unemployment by then, and much more of the money could be used for deficit reduction.  All in all, there was only upside in the President's announcement.