Second Stimulus Plan Gaining Fans

We mentioned immediately after the first stimulus plan (the $170B rebate checks - i.e. sending money directly to China (Walmart) and Middle East (gas)) that another one would be announced as the economy worsened. Keep in mind at the time, there was no agreement that any recession would even occur - so it was a pre-emptive strike!

It looks like our prediction is gaining steam. Now that we simply are making a mockery of any budget or our national debt, we can ask for anything and get it.

• A second economic stimulus package gained sudden momentum after Federal Reserve Chairman Ben Bernanke urged Congress to consider a new plan and the White House said President Bush was "open" to the idea.
• Bernanke's remarks before the House Budget Committee marked his first endorsement of another round of energizing stimulus, something that Democrats on Capitol Hill have been pushing. The idea got a further push when the Bush administration, which has been cool to the notion, offered to consider fresh proposals.
• "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 testified. Repeatedly pressed for how large the stimulus package should be, Bernanke demurred, saying that was up to Congress—along with the exact components. However, he said the size should be "significant." A trio of hard blows from the housing, credit and financial crises has badly pounded the economy.
• Bernanke suggested that Congress design the stimulus package so that it will be timely, well targeted and would limit the longer-term affects on the government's budget deficit, which hit a record high in the recently ended budget year. (Mr. Bernanke - are you kidding me. Look at the audience you are talking to)
• 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. (just make it $3 trillion - I mean it's all just numbers on a spreadsheet and our debt load can be any number now and no one cares - nah, just make it $13 trillion - that's equal to our entire GDP)

I'll now go on record that as the economy weakens into 2009, we'll get a third stimulus plan next summer/fall. And away we go - deficits don't matter and money is free in America.