The Neverending Story ... Part 3

Congress loves our money. Loves it sooooooo much, they want more!


Older article - Bailout Bills Now Total $9.7 Trillion - from Wednesday, February 11, 2009 -

House Dems eyeing another stimulus bill

By Jared Allen Posted: 03/10/09 12:55 PM [ET]

House Democrats are looking at yet another economic stimulus bill beyond the $787 billion one just enacted as investors and consumers continue to show little faith in the economy.

At a special meeting of the Democratic Steering and Policy Committee on Tuesday morning, Democrats heard again from their trusted band of economists and came away reinforced that Congress would need to spend billions of additional taxpayer dollars in the coming months to help pull the economy out its severe recession.

One proposal being considered is an additional economic stimulus bill. Just last month, President Obama signed a $787 billion stimulus measure that Democrats contended was needed to save or create 3.5 million jobs and that Republicans derided as nothing more than debt-spending on wasteful federal projects.

“We are going to need more taxpayer money,” Mark Zandi, the chief economist at Moody’s and a key economic adviser to congressional Democrats, said after the meeting. “I think another stimulus package is a reasonable assumption because of the way things are going.”

House Speaker Nancy Pelosi (D-Calif.), standing with members of her leadership team by Zandi’s side, said she agreed that another stimulus bill is being considered.

“We have to keep the door open,” Pelosi said. “The word of the day is confidence. Confidence in our markets, confidence in lending, confidence in our financial institutions.”

Democrats leaned on the same group of economists they heard from before — including Allen Sinai, chief global economist at Decision Economics Inc.; Rebecca M. Blank, Robert S. Kerr senior fellow at the Brookings Institution; and Alan Blinder of Princeton University — to craft a stimulus bill that was $819 billion when it came out of the House before it was scaled back by Senate and House negotiators.

Barely a month old, the spending provisions in the massive stimulus bill are just beginning to take effect.

And while Democrats and their economic advisers said it was the right prescription for the economy — and that it should be given time to work — they also said that more will be needed.

“The bad news is it’s going to get worse,” Blank said. “The good news is there are a whole series of actions being taken [including the stimulus].”

“Whether this is enough, I think, is still unknown,” she added. “The risks are all on the side of under-reaching, not overreaching.”

The economists and lawmakers made it clear that part of their immediate goal is to inject confidence into the economy — by reaching the psyches of investors and consumers — through words alone. Actions will come quickly, they said, to supplement the confidence they hope to pass on right away.

“What characterizes the current environment is a loss of faith,” Zandi said, noting that faith is part of what separates a recession from a depression. “People aren’t convinced yet that this is going to work.”

“We have to pay due diligence to what is next for us to do to make sure that we continue to make an advance on turning around this economic downturn,” Steering and Policy Co-Chairman George Miller (D-Calif.) said. “Delaying doing what is necessary is not an option we can afford.”

“The policy directions that we have been undertaking along with the Obama administration are the right course,” Miller’s co-chairwoman, Rep. Rosa DeLauro (D-Conn.), said. “Do they need to be adjusted potentially? Yes. We are not frozen in the sand.

“We should not be timid in these actions,” DeLauro continued. “When we have the confidence to move to address these problems in a forthright way and not be able to talk about spending dollars, then we will build the confidence in the American public that, in fact, we are doing the job that needs to get done to provide them with the economic security that they need to survive and take care of their families.”


Josie06 Josie06
56-60, F
1 Response Mar 10, 2009

House Democrats are looking at yet another economic stimulus bill beyond the $787 billion one just enacted as investors and consumers continue to show “little faith in the economy.”<br />
<br />
i have little faith in Congress and the Administration.<br />
<br />
Washington's mind set: "Well, that didn’t work, let’s do it again."<br />
<br />
Can you say ... financial terrorism.<br />
<br />
Now going to our great-great-GREAT grandchildren to pay off.<br />
<br />
Now it's going to our great-great-GREAT grandchildren to pay off.