Bush signs Bailout Bill, and NOW Tony Fratto cautions against "overpromising what it will do"

[Amerigo Vespucci]

How the massive rescue package will affect you



http://www.msnbc.msn.com/id/27011002/page/2/

Will this keep the economy from getting worse?

If it works, it will prevent a deeper recession than otherwise would be expected. But it should not be expected to boost economic growth, according to the White House.

"No one should be overpromising what this bill will do," White House spokesman Tony Fratto said Friday. "It's not been sold as giving a boost to the economy — it's to avoid a crisis."

It could be months before the impact of this plan would be felt. Though the stock market can — and does — turn on a dime, the problem in the credit market is a lack of confidence. That takes longer to fix.

In the meantime, there are clear signs that the economy is still on a downward path. Friday’s employment report showed a ninth straight month of job losses. While the government's official jobless rate held steady at 6.1 percent, that counts only people who are actively job hunting. If you count people who have given up looking, the so-called “augmented” jobless rate rose to 9.1 percent in September from 8.9 percent in August.

Consumers are nervous and are cutting back sharply on spending. Roughly two-thirds of the economy is based on consumer spending; if that spending slows further, so will the economy.

[RoyGBiv]

1. Challenge ...

Does anyone know of one person that argued this bill would actually boost growth?

If so, who?

[aquart]

2. And when it does nothing...

Are we STILL not allowed to tear them shrieking limb from limb? Could the next bailout bill include a clause permitting that, please?