Bernanke supports higher spending

[dipsydoodle]

Source: BBC News

US Federal Reserve chief Ben Bernanke has said more government spending may be needed to combat economic weakness.

A fresh round of stimulus would be a good idea, he told the US House of Representatives budget committee.

This is the first time Mr Bernanke has supported such extra spending - something that President George W Bush has not been keen on.

"Consideration of a fiscal package by the Congress at this juncture seems appropriate," said Mr Bernanke.

Read more: http://news.bbc.co.uk/1/hi/business/7680453.stm

[BootinUp]

1. Bernanke is showing some intellect. nt

[glinda]

2. Last stimulus check went to...

all of our regular bills because everyone raised their rates and charges.We spent nothing on ourselves. Heat electric, Insurance and everyone got out money coinciding with the timing of the check. Now we have to pay those rates without any additional money. So if getting another check means higher rates from everyone then "No thanks!"

[snappyturtle]

4. Be glad you got yours. We never got ours. "Asking" where it was

was non-productive. Matter-in-fact my mother didn't get hers either. We all pay our taxes. Owed nothing to the government. Come to think of it I didn't get my annual social security 'projection', status, whatever, around my birthday last month. Wonder if we've been lost in the system. You're right about rates going up coinciding with the checks. Our electric went from an average of $125 a month to $470. I am livid. Generally I believe the * administration and friends are and have been raping this country more than usual this past year; getting everything they can milk out of it until they leave office.

[glinda]

17. Wow! I am so sorry that it is even worse for some.

[Waiting For Everyman]

(dupe)

[Waiting For Everyman]

14. Exactly. And it coincided with the gas spike which went to speculators.

Speculators which included the banks - which we just bailed out. And now we're paying them higher interest. How many times over are we going to pay the same extortionists? We all should be getting a big refund just for the gas prices.

[cal04]

3. Bernanke: Another Stimulus Package 'Appropriate'

http://cbs4.com/national/economy.financial.meltdown.2.844235.html

Wall Street found some reasons for optimism Monday when the credit markets showed signs of easing and Federal Reserve Chairman Ben Bernanke appeared to open the door for further interest rate cuts.

Bernanke, saying the country's economic weakness could last for some time, also threw his weight behind a fresh round of government stimulus. Stocks surged as investors interpreted some of his remarks as a hint the central bank would lower rates again soon.

Bernanke's remarks before the House Budget Committee marked his first endorsement of another round of government stimulus. Democrats on Capitol Hill have been pushing for another stimulus plan, but the Bush administration has been cool to the idea as the federal budget deficit explodes.

"With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," Bernanke said in prepared testimony to the panel.

House Speaker Nancy Pelosi has said an economic recovery bill could be as large as $150 billion. Economists have told leading Democrats the plan should be twice the size.

[FourScore]

5. Fed Chairman Bernanke Backs Obama/Pelosi Stimulus Plan

Source: DailyKos

Things are really changing. Today, "Federal Reserve Board Chairman Ben S. Bernanke, citing a 'weak' outlook for the U.S. economy into next year, differed with the White House and endorsed consideration of a fiscal stimulus package." ( Bernanke Backs Consideration of Stimulus, Differing From Bush - http://www.bloomberg.com/apps/news?pid=20601087&sid=aNnpeec7_g.w&refer=home).

Lawmakers "should consider including measures to help improve access to credit by consumers, homebuyers, businesses and other borrowers," Bernanke said in prepared testimony to the House Budget Committee. "Such actions might be particularly effective at promoting economic growth and job creation," he said, calling consideration of a stimulus "appropriate..."

...This is exactly what Obama and the Democrats in Congress want...

...According to Representative Scott Garrett, a New Jersey Republican, "Bernanke's support would lend the Democrats' plan both 'validity' and bipartisan sheen that would make it easier to approve..."



Read more: http://www.dailykos.com/story/2008/10/20/11059/449/99/635520

[no_hypocrisy]

6. Memo to Dennis Schulman (democratic challenger to Scott Garrett).

Take the ball, run down the field, and make your touchdown.

[skooooo]

7. Bernanke must be a socialist!!

:rofl:

[dhpgetsit]

8. It is definitely time for an aggressive "bottom-up" approach.

We need a big program to build green power infrastructure.

Remember how the CCC with its bridges, roads, and dams help pull the country out of the Great Depression. Not only did the projects proivide good employmant for Americans. Those projects were great investments that still pay dividends today.

It's a no-brainer.

[drm604]

9. Infrastructure spending.

It will need to be done eventually, so why not now when we need the stimulus? Repair our highways, bridges, municipal water systems and sewage treatment plants, and start building a new green energy infrastructure.

[enlightenment]

10. It's a great idea, but do we have the manufacturing

capacity to support it? The steel factories and other kinds of manufacture necessary to support the projects? We did in the 1930s; we didn't have to import the materials.

How do we adjust for that without winding up in even deeper debt importing what we need?

I'm not trying to be sarcastic . . . I'd really like to know the answer, if anyone has it!

[drm604]

12. Maybe we could require that at least some large percent of the materials

are manufactured in this country. That should cause things like steel factories to be built or refurbished.

[enlightenment]

15. It could be done - quickly even.

During WWII, a very large magnesium refining facility was built in Las Vegas (Basic Magnesium, Inc - BMI) from ground breaking to production in 11 months. Including a railway spur off the newly completed branch that had been built to transport supplies to the site of Boulder (Hoover) Dam ten years earlier (that 22.7 mile branch was built in just under 9 months, using mule drawn scrapers and a couple of power shovels . . . everything else was done manually).

[Waiting For Everyman]

11. I have a better idea that would cost the gov't nothing.

Put a low cap on all interest rates. That would give people more to spend every month, and stop car repossessions and mortgage defaults. It would help with every kind of loan - and we're a nation of debtors, that's our problem. Lower interest would help us liquidate it, and give everyone more to spend into the economy every month. We need major debt relief, but instead rates went up. That has to stop or the economy will stall out.

Stimulus checks cost a lot to send out, and mostly go back to the banks in overcharged interest. What's the point of that? They already got their bailout. They owe us consumers something in return.

[BootinUp]

13. u socialist, lol.

Not sure that idea would go over too well. I prefer that we take our time reforming the banking system in the next administration, and people like Bernanke will go along with quite a bit of that. Size of banks, regulation etc.

[snappyturtle]

18. Plain and simple, YES! But you see that solution would help us, the

people, and I don't think that is the real purpose here.

[MadinMo]

16. Oh boy! Maybe it will be just in time for all of us to buy

Big Screen TVs so we can watch the Superbowl in style! :sarcasm:

I'm guessing they see a bleak Christmas season ahead for retailers. If they are fast enough they can send checks out to cover part of that.

However, I'd probably use mine to pay down debt just like I did with the previous "stimulus" payment.

[Purveyor]

19. Fed Chief Warns Of Lengthy Slowdown Amid Job Fears

Source: Agence France-Presse

WASHINGTON (AFP) – The chairman of the US Federal Reserve warned the country faced a protracted slowdown Monday, amid forecasts the financial crisis could push worldwide unemployment to a record high.

The warning from Ben Bernanke, delivered just hours after China posted figures showing a slowdown in growth, knocked the shine off a slight gain in the markets which appeared to be bottoming out after recent falls.

Amid more dire news in the banking industry, Sweden became the latest government to shore up its financial sector, presenting a plan worth 1.5 trillion kronor (152.2 billion euros, 206.1 billion dollars).

In a candid appearance before a congressional committee, Bernanke said consumption was falling, confidence was low and the housing market depressed.

"The slowing in spending and activity spans most major sectors," he said.

"With the economy likely to be weak for several quarters and with some risk of a protracted slowdown, consideration of a fiscal package by the Congress at this juncture seems appropriate," he added.

Read more: http://news.yahoo.com/s/afp/20081020/bs_afp/financebankingworld_081020172357;_ylt=ArNN3TWt7sy8IHbhirH7vS2FOrgF

[Nambe]

20. Oops, he was supposed to do that six months ago. It must have been top secret.

[Tempest]

21. Look for civil unrest in China

And other countries that are shutting down factories and leaving their employees high and dry.

[PatrynXX]

23. as I found out today

Waterloo - Cedar Falls courier in Waterloo, IA will no longer be printed in Waterloo. Packaging and the press depts found out today there is no job there. 8 long years of loyalty and I got screwed for it. And I am actually quite new compared to the others. Some have been there 20-30 years. Explanation was supposedly not the Floods in the summer. Yeah sure..... thats when they found out it was cheaper to run in Cedar Rapids. still in shock. lemme know when it hits me.

[Tempest]

24. Welcome to DU

I'm sorry to hear about your situation. I'm hearing it a lot more lately.

The local newspaper in my town did the same thing with their classified department. It put 18 people on the street.

Economists that have been accurate for years on their predictions are all saying this will be almost as bad as the great depression. And the entire world is going to feel it at the same time.

It's going to get ugly.

Hang in there and keep the faith.

[RUMMYisFROSTED]

22. Not even a whisper of golden parachute fears.

C'est la Vie.