Marc A's blog

It's Official: Aid To States Will Be Part of Second Economic Stimulus Plan

Cross posted at myDD

Perhaps we are seeing a dim light at the end of a tunnel. The Wall Street Journal (subscription only) reported last week that aid to states will be included in a second economic stimulus bill of at least $50 billion:  read more »

The general consensus, among people including former Clinton administration officials Lawrence Summers and Alan S. Blinder, was that checks for individuals and additional government spending would help boost the economy, stem job loss and alleviate the pain of higher prices that people are paying for food and gas.

Bush, Bernanke About to Botch It

On Wednesday, the Philadelphia Inquirer printed an Associated Press story about the Federal Reserve's priorities shifting to controlling inflation instead of making more interest cuts. Chairman Bernanke acknowledged the weak economy but hoped for something better in the second half of the year:  read more »

Economic growth in the current quarter, he acknowledged, is "likely to be relatively weak." Even as he reiterated the Fed's hope for a pickup in growth in the second half of this year and into 2009, Bernanke said the economy continued to battle against a trio of negative forces – a housing slump, credit problems, and fragile financial markets.

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