Pelosi's whine for pork is coupled with a Machiavellian refusal to do anything till THE ONE is enthrone come January. Of course.
"Bernanke, saying the country's economic weakness could last for some time, also threw his weight behind a fresh round of government stimulus. Stocks surged as investors interpreted some of his remarks as a hint the central bank would lower rates again soon.
Bernanke's remarks before the House Budget Committee marked his first endorsement of another round of government stimulus. Democrats on Capitol Hill have been pushing for another stimulus plan, but the Bush administration has been cool to the idea as the federal budget deficit explodes.
"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 prepared testimony to the panel.
House Speaker Nancy Pelosi has said an economic recovery bill could be as large as $150 billion. Economists have told leading Democrats the plan should be twice the size.
In an interview with The Associated Press on Friday, Pelosi said Congress is unlikely to approve a tax rebate before President Bush leaves office, however. She signaled that prospects are dim for a post-election session to pass an economic aid package."
What economists? Democrat ones?
"Bernanke said the package also should include provisions that would help break through the stubborn credit clog that is playing a major role in the economy's slowdown.
If the Congress proceeds with a fiscal package, it should consider including measures to help improve access to credit by consumers, home buyers, businesses and other borrowers," Bernanke said. "Such actions might be particularly effective at promoting economic growth and job creation," he added."
Banks & businesses are one thing, but isn't easy consumer & mortgage credit what got us on this slippery slope to begin with?
And I'm sick of this 'throw more of other people's money at it' mentality that seems to infest D.C. ( that includes you, GW!).
The Fed's done it's back peddle - it's lowered interest rates twice now; coordinated with world banks and dumped $630,000,000,000.00 into the world system; the Treasury wants part ownership of private banks in exchange for $250 billion dollars (which may ease bank-to-bank lending fears); The FDIC has even guaranteed "new issues of bank debt _ fully protecting the money even if the institution fails" and upped deposit insurance to $250,000 per account.
SUCK.IT.UP and let it work. Like MM said, "Don't tell me we're not doing anything!"
But, come January 2009, congress will take all the credit (pun!). Of course.