Your Money This Week: Japan Quake, Oil Reserves and HUD Loses Again

While markets experienced a significant downturn on Thursday due to continued tension in the Middle East, it was turmoil in Asia that was cause for concern today. Luckily, it appears the impact on U.S. stocks is minimal.

President Obama is also attempting to minimize the damage caused by rising gas prices and is prepared to tap our oil reserves if necessary. While the Obama Administration may save us from pain at the pump, struggling homeowners have still received little assistance as yet another failed HUD program was eliminated in a House vote today.

Stock Market Steady Through Japan Quake

Events like the devastating earthquake that just rattled Japan tend to also have a devastating effect on the stock market, yet U.S. stock values showed little reaction to the destruction today. Though natural disasters can often be one of the factors that cause the stock market to fall, and global markets definitely took a hit following the quake, it doesn’t appear U.S. economic recovery will be greatly stifled by the occurence. Why? Energy, materials and industrials companies grew with the expectation that rebuilding initiatives will result in increased demand for these products.

Obama Ready to Tap Oil Reserves

The President is assuring Americans that he will not allow gas prices to increase to an unmanageable number. Though the exact trigger-number hasn’t been disclosed, Obama announced during a Washington press conference, “everybody should know that, should the situation demand it, we are prepared to tap the significant stockpile of oil that we have in the Strategic Petroleum Reserve.”

HUD’s Emergency Mortgage Relief Program Voted Down

Taxpayers may no longer be footing the $1 billion set aside to help sick and unemployed homeowners through the Emergency Homeowners’ Relief Program as it was voted to be eliminated in the House today. In fact, this program is just one of four housing initiatives on the firing line as House Republicans attempt to shoot them all down.

It’s argued that these expensive programs for struggling homeowners, including HAMP and the Neighborhood Stabilization Program, are failing to accomplish their objectives and essentially wasting money. However, President Obama said he plans to veto any actions to eliminate the programs.

What This All Means for You

It’s important to consider the long-term financial effects of what’s happened this week. While we as individuals may not be experiencing a huge direct impact from the earthquake in Japan, rising gas prices or a fight to end failing HUD programs, such major events are sure to affect us all eventually, whether positively or negatively.