14 Oct 2008

Economic recovery measures proposed by Obama

6:46 am on 14 October 2008

US Democratic presidential candidate Barack Obama has proposed a series of new economic rescue measures to combat the effects of the financial crisis.

There would be a temporary $US3,000 tax credit to companies for each new job created in the United States over the next two years.

In addition, Senator Obama is proposing penalty-free withdrawals from some retirement accounts and a 90-day moratorium on foreclosures for homeowners who are living in their homes and making good-faith efforts to make their mortgage payments.

The plan issued on Monday also calls for temporarily eliminating taxes on unemployment insurance benefits and having the Federal Reserve and Treasury prepare for guaranteeing a broader range of liabilities of the banking system.

He also wants the Treasury to help unfreeze markets for individual mortgages, student loans, car loans, loans for multifamily dwellings and credit card loans.

The election is on 4 November.