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Second stimulus may throw caution to the wind

Rocky Mountain News

Published October 22, 2008 at 12:05 a.m.

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Congress and the Bush administration are beginning to agree on the idea of a second stimulus package but right now that's as far as the agreement goes.

Congressional Democrats proposed resurrecting and more than doubling, to more than $150 billion, a stimulus bill the House approved last month. The White House opposed it, and presumably still does, and the measure failed in the Senate.

If a stimulus package is really needed - which we doubt very much is the case - Federal Reserve Chairman Ben Bernanke's preference for improving access to credit seems the way to go.

By that time, for one thing, we may begin to see the impact of the $700 billion rescue plan and the $540 billion the Fed is pumping into money market funds.

But the careful consideration Bernanke called for is likely to go out the window depending on whether there's another economic scare and, of course, the outcome of the election.

Comments

  • October 23, 2008

    6:33 a.m.

    Suggest removal

    Sherrytex writes:

    Wait...congress was cautious before? Did I miss something?

  • October 23, 2008

    7:09 a.m.

    Suggest removal

    VVVV writes:

    Using a bucket to bail the Titanic wouldn't have worked either.