By LIZ SIDOTI and TOM RAUM Associated Press Writer

Feb 17, 2009, 7:29 PM EST

DENVER (AP) --

Racing to reverse the country's economic spiral, President Barack Obama signed the mammoth stimulus package into law Tuesday and readied a new $50 billion foreclosure rescue for legions of Americans who are in danger of losing their homes.

There was no recovery yet for beleaguered automakers, who were back in Washington for more bailout billions. General Motors Corp. said it was closing plants, Chrysler LLC said it was cutting vehicle models and both said they were getting rid of thousands more jobs as they made their restructuring cases for $5 billion more for Chrysler and as much as $16.6 billion more for GM. The United Auto Workers union said it had agreed to tentative concessions that could help Detroit's struggling Big Three.

Anything but reassured, Wall Street dove ever lower. The Dow Jones industrials fell 297.81 points, closing less than a point above their lowest level in five and a half years.

Obama focused on the $787 billion stimulus plan, an ambitious package of federal spending and tax cuts designed to revive the economy and save millions of jobs. Most wage-earners will soon see the first paycheck evidence of tax breaks that will total $400 for individuals and $800 for couples.

The stimulus package was a huge victory for Obama less than one month into his presidency. But he struck a sober tone and lowered expectations for an immediate turnaround in the severe recession that is well into its second year.

"None of this will be easy," he said. "The road to recovery will not be straight. We will make progress, and there may be some slippage along the way."

Still, he declared, "We have begun the essential work of keeping the American dream alive in our time."

Underscoring energy-related investments in the new law, Obama and Vice President Joe Biden flew separately to Denver where the president signed it at the Denver Museum of Nature & Science before roughly 250 people including alternative energy business leaders. Earlier, the pair examined solar panels on the museum's roof.

On Wednesday, Obama will outline another big piece of his recovery effort - a $50 billion plan to help stem foreclosures - in Arizona, one of the states hardest hit by the mortgage defaults that are at the center of the nation's economic woes.

Treasury Secretary Timothy Geithner mentioned the housing program last week as he rolled out a wide-ranging financial-sector rescue plan that could send $2 trillion coursing through the financial system. Obama is expected to detail how the administration plans to prod the mortgage industry to do more in modifying the terms of home loans so borrowers have lower monthly payments.

More than 2.3 million homeowners coast-to-coast faced foreclosure proceedings last year, an 81 percent increase from 2007. Analysts say that number could soar as high as 10 million in the coming years, depending on the severity of the recession.

In Denver, Obama said the stimulus package had received broad support in Washington and elsewhere, though Democrats pushed it to passage with only three Republican votes in the Senate and none in the House.

One of the biggest public spending programs since World War II, the new law is designed to create jobs in the short term and to boost consumer confidence to battle the worst economic crisis since the Great Depression. It also makes down payments on Obama's health care, energy and education goals.

Taking the long view, Obama cast the law as just "the beginnings of the first steps" to jerk the country out of a crisis he inherited from GOP President George W. Bush.

White House press secretary Robert Gibbs, asked by reporters, would not rule out another stimulus in the future, though he said a sequel was not in the works "at this point." He added, "The president is going to do whatever he thinks is necessary to get our economy moving again."

The nation's distressed economy has dominated Obama's first weeks in office.

While laying the groundwork to address woes in the auto, financial and housing sectors, Obama spent some of his political capital lobbying hard for the stimulus package that the Democratic-controlled Congress approved last week. Obama has essentially pinned his political future on his prescriptions for the ailing economy, going so far as to raise the possibility of a one-term presidency if he fails.

There's no guarantee that Obama's enormous marshaling of resources and multi-pronged approach will stunt the economic freefall, much less produce jobs or bring prosperity. The only thing certain is that Obama is on track to boost a federal debt that stands at $10.7 trillion.

Clearly mindful of that, Obama said: "We will need to do everything in the short term to get our economy moving again" as well as "begin restoring fiscal discipline and taming our exploding deficits over the long term."

As he spoke in Denver, General Motors Corp. and Chrysler LLC were racing to complete plans detailing how they would repay government loans and restructure their operations to remain viable. Detroit's third major automaker, Ford Motor Co., has not requested government help.

GM submitted a dire plan to the Treasury Department, saying it would try to borrow up to $16.6 billion more from the government on top of the $13.4 billion it has received. The plan includes cutting 47,000 more jobs and closing five more U.S. factories.

Chrysler said it needed $5 billion more to survive on top of the $4 billion in government loans it received in December. It said it would cut 3,000 jobs and three vehicle models as part of its restructuring plan.

The United Auto Workers union said it had reached a tentative deal with Chrysler, GM and Ford to modify its contracts with the automakers to help them endure.

As a White House task force prepared to oversee the companies' restructuring, presidential spokesman Gibbs said the administration had not closed the door to a government-backed bankruptcy for the companies.

GM said it had considered bankruptcy, but the only credit available to finance a reorganization would be from the government and that could cost as much as $100 billion.

As for the stimulus plan, Obama contends it will create or save 3.5 million jobs. Critics, mostly Republicans, contend it is filled with wasteful spending and provisions that won't boost the economy.

Recession victims will get extended unemployment benefits and help with health care coverage, as well as more food stamps and job training opportunities. States will get cash to prevent them from cutting aid for schools and local governments. Billions are slated for road and bridge construction, mass transit, high-speed rail and national parks.

Middle-income and wealthy taxpayers will be spared from income tax increase that would otherwise hit them. First-time home buyers, new car buyers, college students, poor families with several children and people who make their homes energy efficient also will get breaks.

The measure also includes money for three top items on the president's agenda - expanding computerized information technology in the health care industry, creating "green" jobs Obama says will help wean the country off foreign oil dependence, and improving the quality of kindergarten through 12th grade education.

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Tom Raum reported from Washington. Associated Press Writers Ben Feller and Ken Thomas in Washington and Tom Krisher in Detroit contributed to this report.

Obama signs sweeping economic stimulus bill into law

 2009-02-18 05:26:42  

·Obama Tuesday signed a 787-billion-dollar economic stimulus bill into law in Denver. ·Obama underscores investments the spending plan will make in "green" energy-related jobs. ·Despite the plans, economists are warning it takes time for the economy to recover.

    WASHINGTON, Feb. 17 (Xinhua) -- U.S. President Barack Obama on Tuesday signed a 787-billion-dollar economic stimulus bill into law in Denver, Colorado, calling it the first step to pave the way to long-term growth.

    The sweeping economic rescue package, the American Recovery and Reinvestment Act, is designed to jolt the ailing U.S. economy by providing government spending and tax cuts for both individuals and businesses.

    "I don't want to pretend that today marks the end of our economic problems nor does it constitute all of what we have to do to turn the economy around," Obama said before signing the bill.

    "But today does mark the beginning of the end -- the beginning of what we need to do to create jobs for Americans scrambling in the wake of layoffs.

    "The beginning of what we need to do to provide relief for families worried they won't be able to pay next month's bills.

    "The beginning of the first steps to set our economy on a firmer foundation, paving the way to long-term growth and prosperity," the president said.

    Obama signed the bill at the Denver Museum of Nature & Science. He will then take a tour of the museum's installation of solar panels, according to a White House press release.

    The president is underscoring investments the spending plan will make in the "green" energy-related jobs by signing the bill in Colorado, a state its governor Bill Ritter described on Tuesday as "the home of new energy economy," news reports say.

    At the same time, the White House is launching a website at www.recovery.gov, which is supposed to help people find out how federal dollars are being spent, the pace of scheduled construction projects and whether any federal dollars are being wasted.

    Since early last week, Obama has turned to appearances throughout the country to sell his economic plans, hoping to sustain support and foster hope among Americans who are giving him high marks in opinion polls.

    The public backing for the president's economic plan is in contrast to the partisan atmosphere in Congress, where the stimulus bill was passed last week on votes split mostly along party lines.

    Republicans were nearly unanimous in opposing the stimulus bill, arguing that the bill is too wasteful.

    Aimed at saving or creating 3.5 million jobs over the next two years and ending the worst U.S. economic crisis since the 1930s, the bill will pump money into highway, bridge and other infrastructure projects, health care, renewable energy development and conservation.

    It also includes a 400-dollar tax break for most individual workers and 800 dollars for couples, including those who do not earn enough to pay income taxes.

    Meanwhile, it will provide aid to states so they can head off deep cuts and layoffs and will provide financial incentives for people to start buying again.

    In addition, it will increase unemployment benefits and food stamps, and subsidies for health insurance to help poor people and laid-off workers.

    Despite the massive spending plans, economists are warning that it takes time for the economy to recover. Obama also emphasizes that the bill will not produce a rapid return to economic health.

    So, part of Obama's message as he has traveled across the country is designed to lower expectations, according to local media reports.

    As another part of the government's economic recovery effort, Obama is scheduled to outline his plan to help struggling homeowners in a speech on Wednesday in Arizona, one of the states hardest hit by home foreclosures that are at the center of the nation's economic woes.

    Also, the government is not ruling out a second economic stimulus plan, White House spokesman Robert Gibbs told reporters aboard Air Force One en route to Denver. But there are no plans currently in the works for one, he stressed.