2nd Stimulus Plan?
Washington is considering a second round of a stimulus plan. It has been met with mixed emotions, Federal Reserve Chairman Ben Bernanke has endorsed the idea and the Bush administration has softened its opposition.
Bernanke advised any new package plan must be focused to quickly provide a shot of relief to the economy. Hold on, the plan would not come directly to the consumers as in the past. The package would be for road building and other projects to create jobs. However, there could be pork in this plan as it could also be aimed at increasing spending on food stamp programs, unemployment benefits and aid to cash strapped governments who have overspent their budgets and not managed fiscal responsibility.
Oppositions of the plan advised this would already add to the bloated budget deficit and not bring much needed relief to the broader economy. Bernanke suggested this plan is needed because the normal tools the Fed's use to stimulate the economy, interest rate cuts and other measures are not hitting their mark to get the economy going.
What do you think?
Rick Knotts
www.BirminghamRealEstateNews.com
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