Congress: Spend More to Break Recession?

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WASHINGTON -- The global recession is growing worse.

In the United States, foreclosures are soaring and as Congress asks questions about how billions of dollars in stimulus funds are being spent, plans are being made to spend even more.

The McWiliams look like any other American family. But the stress is building.

"The new term for my situation is underwater," explained homeowner Leonard McWilliams. "That is a scary thought."

McWiliams is a disabled Air Force veteran. Next month his house is scheduled to go up for auction.

Foreclosures Rising

It's a scene becoming increasingly more common. Foreclosures were up 30 percent last month.

A new report by RealtyTrac reveals more than 74,000 properties were repossessed by lenders.

The numbers highlight a strengthening headwind facing the Obama administration as the President aims to help millions of Americans stay in their homes through refinanced mortgages and modified loans.

"We're moving forward in stabilizing the financial system through a whole host of steps that have already been taken and a number of steps that we intend to take in the future," Obama said.

And that could mean spending more money.

$12.5 Trillion and Counting

Bloomberg News reports the government has already committed up to $11.7 trillion so far to rescue the financial system.  The economic stimulus bill cost nearly $800 billion. That adds up to $12.5 trillion with possibly more to come.

Treasury Secretary Timothy Geithner is now joining Britain in urging other nations to spend more in an effort to break the recession.

"Everything we do in the United States will be more effective if we have the world with us," Geithner said.

But Congress still wants to know how troubled banks are spending the billions of taxpayer dollars they have already received.

"(The) treasury just does not know what Wall Street is doing with government funds," said Rep. Edolphus Towns D-NY.

Washington may not know what Wall Street and the banks are doing with the money that has already been loaned out. But with the economic situation deteriorating, the government is already gearing up to debate the possibility of spending more to turn the crisis around.

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CBN News
Jennifer Wishon

Jennifer Wishon

CBN News Washington Correspondent

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