Federal Aid

The housing plan unveiled by President Obama on Wednesday goes further than any previous effort to break the vicious cycle of declining home values, rising mortgage defaults and frozen credit that triggered the country's worst recession since the 1930s. And it embraces strategies that attack the complex problems on several fronts but without requiring a long struggle in Congress.

Transfixed by the daily spectacle of dismal economic news and wild Wall Street swings, few Americans have looked up to see what a wide array of economists say lies beyond the immediate crisis. And with good reason: The picture isn't pretty. The sleek racing machine that was the U.S. economy is unlikely to return any time soon despite the huge repair efforts now underway. Instead, it probably will continue to sputter and threaten to stall for years to come.

Tens of thousands of Californians out of work for more than a year soon will be getting an extra 20 weeks of unemployment insurance checks, thanks to the federal economic stimulus program. The Legislature approved the extended benefits Thursday, and processing of them is expected to get underway as early as today after Gov. Arnold Schwarzenegger signs legislation authorizing the state to receive more than $3 billion from Washington.

You're paying your bills, but your landlord isn't. And you're the one holding the eviction notice. This is becoming an all-too-familiar scenario for thousands of renters nationwide who have become the unintended victims of foreclosures. Banks are booting good tenants onto the streets with little to no notice after seizing a property from a delinquent owner, ignoring tenant leases.

Congress is poised to do away with one of former President George W. Bush's signature initiatives in education: the taxpayer-funded vouchers that enable students from low-income families in the District of Columbia to attend private schools. About 1,700 children in kindergarten through 12th grade receive the $7,500 annual scholarships. Four times as many apply.

So you want to refinance your house, but it's not worth enough for you to get a good loan in the current market? A new Obama administration program is designed to fix that problem for millions of homeowners. Here's how it works. In the past, the federal Fannie Mae and Freddie Mac mortgage programs would only handle loans of up to 80% of your home's value, unless you bought mortgage insurance. And if you owed more than your home was worth, you were flat out of luck.

The firestorm over American International Group is spreading beyond executive bonuses, with lawmakers and policy experts now questioning virtually all aspects of the taxpayer-financed rescue package for the insurance giant. Among other issues, critics are asking why AIG was allowed to use federal bailout money to repay $13 billion in debt obligations to Wall Street powerhouse Goldman Sachs, as well as debts to foreign banks.

The massive federal economic stimulus package hammered out by Congress this week contains about $106 billion earmarked for education, an unprecedented expansion of federal spending into the nation's schools. District officials throughout California, bracing for another round of painful state budget cuts, were grateful for a new infusion of funds. The money would pay for, among other things, special education, school repair and retaining teachers who might otherwise be laid off.

A report due to be released today by a Republican senator contends the Obama administration's stimulus program is fraught with waste and incompetence -- evidenced by a turtle crossing in northern Florida that will cost more than $3 million and a snafu in which thousands of Social Security checks went out to people who had died. Modeled after a release from the White House describing 100 stimulus projects that were in the works, the report put out by Sen.

President Obama's plan to save failing U.S. automakers -- and make them the instruments for creating a cleaner, greener transportation system -- marked a major step across the line that traditionally separates government from private industry. His announcement Monday of a new position on bailing out Detroit went beyond a desire to be sure tax dollars were not wasted in bailing out struggling companies.