Americans in here, another stimulus plan is being drawn up

[FAH1223]

Just weeks after Congress approved the largest rescue package in US history, Nancy Pelosi, the speaker of the House of Representatives, said "we have to keep the door open" to another stimulus.

David Obey, the chairman of the appropriations committee, said he has instructed his staff to start drafting another stimulus proposal, though he emphasised no deadlines or timelines had been set.

Their remarks followed a meeting with economists who warned that only 2.5 million jobs would be "saved or created" over the next year, rather than the 3.5 million forecast by President Barack Obama.

Mark Zandi of Moody's Economy.com, who has also visited the White House, was the leading voice warning that more taxpayer money should be pumped into the economic bloodstream, even though the first round of government spending and tax cuts has yet to take effect.

The spectre of a second stimulus will alarm Republicans, who opposed the first package nearly unanimously, as well as conservative Democrats.

However some, mainly left-leaning, economists argued from the start that more money should be spent. They claim they have been vindicated by a series of grim statistics on Wall Street and in the jobs market since the stimulus bill was passed three weeks ago.

The Dow Jones index has fallen by 17 per cent since Mr Obama’s inauguration. Unemployment climbed to 8.1 per cent by the end of February, as another 651,000 jobs were lost. Most experts forecasting the rate will reach close to nine per cent by the end of the year.

Amid warnings of a long-lasting recession, or another Great Depression, even some economists friendly to Mr Obama have criticised him for doing too little.

Paul Krugman, the Nobel Prize-winning economist and columnist, wrote in the New York Times: “Economic policy is falling behind the curve, and there’s a real growing danger that it will never catch up.”

The administration hopes that when it releases its detailed plans for bank restructuring that economic confidence will pick up. It is currently conducting “stress tests” of the 19 biggest banks, which could result in the government taking significant stakes in the banks.

Ahead of a meeting of G20 finance ministers in Horsham, West Sussex this weekend, Tim Geithner, the Treasury Secretary, has called on other major economies to boost their stimulus spending to US levels. Although the White House has not ruled out a second stimulus, it maintains enough has been done to revive confidence in the domestic economy in the short term.

Robert Gibbs, the president’s press secretary, said: “The president and his economic team believe that the steps we took will have a concrete impact on getting our economy moving again. The focus throughout this administration is doing all that we can to move the spending that’s been authorised by Congress.”

Mr Obama will soon be preoccupied with a major battle on his hands to force a $3.6 trillion budget through Congress, which includes major initiatives such as raising taxes on the wealthy to pay for health care reform and a cap and trade system on carbon emissions.

The White House has not ruled out further action, but maintains that it has done enough to revive confidence in the economy in the short term.

Mr Obama will soon have a major battle on his hands to force a $3.6 trillion budget through Congress.

Robert Gibbs, the president's press secretary, said: "The president and his economic team believe that the steps we took will have a concrete impact on getting our economy moving again. The focus throughout this administration is doing all that we can to move the spending that's been authorised by Congress."

[ms.naliaa]

Fah:
what are you studying in school?

[FAH1223]

Fah:
what are you studying in school?

im a poli sci major

you thought i was finance or something?

[black velvet]

Why don't they just do some QE like the UK and get it over with?

[Aerosmith]

Nice. Anal rape the ignorant docile american Obummer public.

[Hoowle]

this means more debt for future generations.

[FAH1223]

Nice. Anal rape the ignorant docile american Obummer public.

lol