ECONOMIC NEWS

Michael sez: All this talk of a stimulus for the country, but I see no checks being mailed to the people. For Pete's sake, the people ARE the economy. If we are not spending and going along, then there is no economy. Bernanke is interested in taking care of bankers. Period. He IS a banker and he works for a private firm owned by Europeans interests that control our currency. A man of the poeple is gong to have to stand up and demand that any stimulus money be given to the people who matter.


White House open to second stimulus
Bernanke presses Congress to act against downturn

The White House dropped its opposition to a second stimulus bill Monday after Federal Reserve Chairman Ben S. Bernanke urged Congress to pass legislation to counter what he said could be a long and deep downturn in the economy.

House Speaker Nancy Pelosi, California Democrat, has said Congress may convene after the Nov. 4 elections to pass a stimulus package of $150 billion to $300 billion that could include a second round of tax cuts as well as aid for state and local governments and the unemployed. With the White House's assent Monday, House aides said the likelihood of such a lame-duck session increased considerably.

"We're continuing to have conversations with members of Congress and we're open to ideas that they would put forward ... that would stimulate the economy and help us pull out of this downturn faster," White House spokeswoman Dana Perino said within hours of Mr. Bernanke's testimony before the House Budget Committee. "We'll just have to see when Congress gets back, if they decide to move forward, what sort of package they want to draft into legislation."

Mrs. Perino downplayed previous White House reluctance to pass a stimulus bill that could boost the already soaring budget deficit past $1 trillion this fiscal year.

"We've had an open mind about it, but what we are focused on right now is the urgent need to get [the $700 billion bank] rescue package implemented," she told reporters traveling with Mr. Bush to Louisiana.

For weeks, the administration and congressional Republicans have been pushing alternatives they say would boost the economy, including drilling for oil and gas on the outer continental shelf and ratifying free-trade pacts with Panama, Colombia and South Korea.

Mrs. Perino expressed skepticism about whether the legislation Democrats are drafting would be effective. "We'll see if it actually would stimulate the economy," she said, adding that Mr. Bush would seek the advice of all his economic advisers. "Obviously, Ben Bernanke is a key one."
The Democratic plan would increase federal spending on infrastructure, food stamps, unemployment insurance and health care for the poor.
Democrats have touted funding for building projects in particular as a way to re-employ thousands of construction workers who have been laid off because of the slump in housing and real estate.

BLOOMBERG NEWS: Treasury Secretary Henry M. Paulson Jr. on Monday said the government program to inject capital into banks has enough funds to support every financial company that qualifies.

In addition, the credit crunch has endangered state and local financing of many projects, forcing them to cancel or postpone them.