The bailout doesn’t change the leading believe: the economy is heading recession. The truth may be hurting, but the bailout doesn’t back up people confidence of future economy.
What is the next move of Federal Reserve Bank? Bernanke already proposed a warming up economic stimulus plan on Monday.
“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 told a congressional panel.
Does the government can stop the recession by pumping money into the market? The first bailout plan is the excuse of the failure of mortgage market. Do Americans need the second “bailout”?
“Another central bank official, Atlanta Fed President Dennis Lockhart, echoed Bernanke’s gloomy outlook, saying that the global credit crisis will chill U.S. economic growth well into next year, but added that powerful steps to unlock financial markets have been taken and will work.”
Does continuous pumping credit into the economy save the economy? It was wrong. Economy will go worse.
But the government won’t stop their spending plan in favors of economy.
“The government sent out about $100 billion in tax rebate checks over the summer to consumers to try to jump-start the economy, but consumer spending has struggled since then. Retail sales fell for three consecutive months through September.
The White House also appeared to be warming to the idea of another spending program. Spokeswoman Dana Perino said the Bush administration was “open” to a new stimulus plan, depending on its makeup, and would look to Bernanke and others for guidance.”
