Another Stimulus Check?

[Rider]

http://www.usatoday.com/money/econom...stimulus_N.htm

[smileyman]

nah, more likely infrastructure investment...building roads and bridges...Kinda like the old conservation corps did in the 30's. Maybe extensions of unemployment benefits, small business tax breaks and such. I don't think they will send out checks to tax payers again...

[the chi]

for those of us fairly lazy...

WASHINGTON — Federal Reserve Chairman Ben Bernanke on Monday endorsed congressional efforts to craft a new economic stimulus package, noting risks of a "protracted slowdown."
He said any such legislation should include improved access to credit for consumers and businesses.

"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke said in testimony prepared for the House Budget Committee on Monday.

The central bank chief did not specify how large a package Congress should consider. "Given the slowing of the economy, I think it should be significant, but I can't give you a number," he said.

White House press secretary Dana Perino told reporters Monday on Air Force One that President Bush is open to the idea of a second government stimulus to further boost the U.S. economy.

Bernanke did say any legislation should be structured so that it would boost spending when the economy was weakest, minimize long-term budget deficits and help ensure that credit begins flowing more freely to consumers and businesses.

When asked if the country is in a recession, Bernanke declined to give a "yes" or "no" answer. "We are in a serious slowdown in the economy, which has serious implications for the public. Whether it is called a recession or not is of no consequence," he said.

House and Senate leaders in recent days have said Congress may come back after the election in November to consider a stimulus bill.

Democrats generally have talked about such things as extending unemployment benefits, providing new tax cuts and investing in bridges, roads and other infrastructure. Republicans have focused more on tax cuts and have questioned whether public works spending is appropriate.

Bernanke said the economy is "likely to be weak for several quarters" and that there is "some risk of a protracted slowdown."

The Fed chairman cited the weakening labor market, slowing in consumer and business spending and a "depressed" housing market. He also said that although trade will likely continue to support the U.S. economy, its contribution will lessen as economies abroad weaken, leading to less demand for U.S. goods.

Bernanke said there are "some encouraging signs" that action taken in recent weeks is helping to loosen credit markets, which had all but shut down. But "it is too early to assess their full effects," he said.

The Conference Board on Monday also had some encouraging news. It said its index of leading economic indicators, a monthly forecast of future economic activity, improved 0.3% in September, the first rise in five months, as interest rate spreads, supplier deliveries and new orders strengthened.

Last week, the government announced that it would begin buying stock in banks as part of the $700 billion financial rescue package passed by Congress. Treasury will also buy bad assets from banks and take other steps to help unclog credit.

"The time needed for economic recovery, however, will depend greatly on the pace at which financial and credit markets return to more normal functioning," Bernanke said.

On the plus side, Bernanke said the slowdown in the economy as well as the rapid decline in commodity prices should help ease inflationary pressures. Lower inflation would give the Fed more room to further cut interest rates in order to boost the economy. Central banks usually cut rates to support weakening economies and raise them to stem inflation.

The Fed chairman was speaking a little more than a week before Fed policymakers next meet to discuss interest rates Oct. 28 and 29. On Oct. 8, the Fed in a surprise move cut its target for short-term interest rates by a half-percentage point to 1.5%, the lowest in more than four years.

House Democrats passed a $60 billion stimulus plan in September, but the measure was not approved by the Senate. House Speaker Nancy Pelosi, D-Calif, has been meeting with economists the past several weeks to talk about additional actions, and House committees will be holding hearings this week on new proposals. Any new package is likely to be far larger than the earlier $60 billion proposal.

Senate Democratic Leader Harry Reid of Nevada last week suggested stimulating growth by rebuilding roads and modernizing schools, extending unemployment benefits, providing tax cuts, working to restructure bad mortgages and providing more federal aid to state and local governments caught in a financing pinch.

As the economic crisis has deepened, Republican presidential nominee John McCain and Democratic nominee Barack Obama have also laid out proposals.

McCain has proposed cutting the capital gains tax rate in half and suspending rules that force seniors to make withdrawals from their 401(k) plans. McCain has also proposed to end taxation of unemployment benefits.

Obama's plan, when combined with earlier economic stimulus proposals, would cost $175 billion over two years, including allowing penalty-free withdrawals of up to $10,000 from IRAs and 401(k)s in tax years 2008 and 2009. The plan would provide a $3,000 tax credit for every new full-time job created in the USA by businesses in 2009-10 and require that banks benefiting from the federally funded bailout provide a 90-day moratorium on foreclosures to give homeowners time to work out a payment plan.

[smileyman]

OMG I think like a Democrat!?!?! I posted without reading that far....

[marko138]

Rae,


Thank you. As I must confess I am too lazy to click the link. However, I must say:

[the chi]

Originally Posted by marko138

Rae,


Thank you. As I must confess I am too lazy to click the link. However, I must say:

Oh that shit makes my tummy hurt from laughing so hard!! I admit, I didnt either, i skimmed...

[Amber Lamps]

Well Motherfucker I did read it plus a few other articles as well. It's funny in a way,as the stock market fell,it brought the commodities market with it and now I'm paying $2.95 a gallon for gas.

On the plus side, Bernanke said the slowdown in the economy as well as the rapid decline in commodity prices should help ease inflationary pressures.

As I don't have any loans or stock,it matters very little to me what those market do. I went out and got a couple ribeyes for $5 a lb,filled up the tank for $2.95 a gallon and bought 2 gallons of milk for $2.99 each. Gas has fallen almost $1 a gallon,gee I feel sorry for all those guys that bought options and helped drive the price up....

[Amber Lamps]

Originally Posted by marko138

Rae,


Thank you. As I must confess I am too lazy to click the link. However, I must say:

Yep...

[Mr Lefty]

Originally Posted by TIGGER

Yep...

only missing the mullet!

[jeeps84]

House and Senate leaders in recent days have said Congress may come back after the election in November to consider a stimulus bill.

I would be shocked if it ever happened at all. Don't hold your breath. I think Smiley has a more accurate prediction. Which was stated in the post as well.