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Shaky Economy Challenges Ambitious Obama Agenda

Post Date: Aug 27, 2008 10:19 a.m.
Ranked website: politicalgroove.com (Ranks #220151 of 3,783,534)

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By BOB DAVIS and T.W. FARNAM August 26, 2008; Page A1 (See Corrections & Amplifications item below.) Democrats convened in Denver on Monday with the economy’s woes muscling to the top of political concerns, as reflected in further drops in stocks and housing prices. The Dow Jones Industrial Average tumbled 241.81 points, or 2.1%, to 11386.25, amid continuing worry over the economic and credit problems. Inventories of unsold homes rose to a record, while prices continued to slip, threatening to delay the housing market’s recovery. Sen. Barack Obama, whom the party will nominate for president this week, addressed one of the key issues, the parlous state of the government-sponsored buyers of mortgages. "I don’t think we can allow Fannie Mae and Freddie Mac to collapse," he said at a town-hall meeting in Davenport, Iowa, adding that their shareholders "shouldn’t be protected." Against this backdrop, Sen. Obama is proposing...

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