Consumer confidence and home sales on the rise - KTIV News 4 Sioux City IA: News, Weather and Sports

Consumer confidence and home sales on the rise

(NBC - KTIV) - 100 days after congress passed his huge stimulus package, President Obama claimed Wednesday we're seeing results.

More than 100 thousand jobs saved and some housing sales are up.

But there's bad news from Detroit G.M. is closer to bankruptcy.

Only a few General Motors' assembly lines were running most shut down to save money when the setback was announced.

Big G.M. investors overnight refused to swap 27 billion in bonds for company stock.

That pushes G.M. closer to bankruptcy and a takeover 71% ownership by the U.S. government and the government of Canada, where G.M. also operates.

And the U.S. government might have to lend G.M. another 30 billion, 50 billion in all.

I think this is quite risky. It may work fine, but there's a real chance this could be like AIG where we put in a lot of money up front but then we write larger and larger checks with the taxpayers' money, said Douglas Elliott an economist with the Brooking Institution.

President Obama got his $800 billion stimulus package thru Congress 100 days ago.

On Wednesday in Las Vegas he gave a progress report.

"In these last few months the American recovery and reinvestment act has saved or created nearly 150,000 jobs," said Obama.

Consumer confidence is reported up as are sales of existing homes which rose almost 3% in April.

"So we're starting to see more transactions there but collectively across the country we're still seeing decline. Prices are still declining," said Tom Kunz, CEO of Century 21 Reality.

Will the Obama economic plan work?? Not in the long run says republican critic-in-chief Dick Cheney.

"I think what it does not only to short term deficits but also long term debt situation is very objectionable," said Cheney.

But the president is upbeat.

He said, "We have carved out a path toward progress."

An expensive, some say risky path, to save U.S. carmakers and end the recession.
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