In a shift, Bush endorses new stimulus plan

House Speaker Nancy Pelosi suggested recently that Congress should get to work on a second stimulus package that would include up to $150 billion in federal spending on unemployment benefits, food stamps, highway-construction projects and aid to cash-strapped state governments.

To hear the White House tell it, you'd think she was proposing, well, socialism or something. Only last Thursday, White House Press Secretary Dana Perino said the administration "didn't think" the Democrats' proposals to spur spending "would help bring money into the economy."

But today, two weeks out from an election that some see as a referendum on George W. Bush's handling of the economy, the White House has a new tune.

First, Federal Reserve Chairman Ben Bernanke gave his blessings to a second stimulus for the economy, which he predicted would be weak for several quarters. Then, as President Bush flew to Louisiana for an economic speech, Perino told reporters on Air Force One that the White House is "open" to a new plan and would "look carefully" at suggestions. In a press gaggle, she said:

We're continuing to have conversations with members of Congress and we're open to ideas that they would put forward that would -- both Democrats and Republicans alike -- that would stimulate the economy and help us pull out of this downturn faster.

It may be too late. Pelosi told the Associated Press the other day that she thinks she'll wait until a new administration takes office. "If (Bush) won't sign it, then let's get on a path" to a bill, Pelosi said, "instead of beating our head against a wall just to make a point that he won't sign it. But we can get something signed — please, God — when Barack Obama wins the election."

-- Johanna Neuman

Photo: Charles Dharapak / Associated Press

Comments

[basementfrog]

I wonder if anyone else saw 60 Minutes on Sunday.

Lewis, the CEO of Bank of America, said Paulson called the major banks for a meeting and tossed out $150 billion. Bank of America said it didn't want or need the money, but Paulson insisted they take it. Forcing $25 billion on the bank even when it didn't want the money. Bank of American says its financial condition is just fine. It is not burdened with a lot of toxic investments, etc.

What is the purpose of that? Does it make since?

Lewis also reveiled that the bankers were told there were no limits or guidelines on what they were to do with the money, that is, no restrictions. They are not required to led the money or make it available to add liquidity to the system. The banks could buy other banks, invest the money, buy treasury bonds, just hold the money...basically do as you please with $150 billion of tax payers money!

What is the purpose of that?

They are just throwing tax payer money at their friends with little defined purpose. That just seems so strange.

What is going on?

Someone ought to ask Paulson to resign. this man does not have the integrity or intelligence to solve this problem and he is likely to muck it up, perhaps very badly.

[basementfrog]

I wonder if anyone else saw 60 Minutes on Sunday.

Lewis, the CEO of Bank of America, said Paulson called the major banks for a meeting and tossed out $150 billion. Bank of America said it didn't want or need the money, but Paulson insisted they take it. Forcing $25 billion on the bank even when it didn't want the money. Bank of American says its financial condition is just fine. It is not burdened with a lot of toxic investments, etc.

What is the purpose of that? Does it make since?

Lewis also reveiled that the bankers were told there were no limits or guidelines on what they were to do with the money, that is, no restrictions. They are not required to led the money or make it available to add liquidity to the system. The banks could buy other banks, invest the money, buy treasury bonds, just hold the money...basically do as you please with $150 billion of tax payers money!

What is the purpose of that?

They are just throwing tax payer money at their friends with little defined purpose. That just seems so strange.

What is going on?

Someone ought to ask Paulson to resign. this man does not have the integrity or intelligence to solve this problem and he is likely to muck it up, perhaps very badly.

[Andy]

Bush has become a democrat! The government has got so many initiatives on hand with a seemingly myopic view that I question how many of these programs will actually work. For example an earlier direct to consumer $50 billion stimulus package, provided a lift to consumer spending of 0.4 percent in May, but dried up after that. Similarly the 2008 housing relief bill did not save the housing market or GSE's - Freddie and Fannie. Despite being politically popular, both examples of fiscal action failed miserably. With the floodgates of government spending opened, it is likely that our financial chiefs and lawmakers will keep on coming back for more.

[Rita G]

Power of Vote

We have power to vote for change and not reward those who have ruled us for for 8 years and have mismanaged to cause recession.

Rita G

[Daisy]

After proposal to grant amnesty, first stimulus package, bailout, and now the second stimulus package...here comes a Dem (fillibuster-proof) Congress and another (consecutive) 8 years of a liberal and/or Dem President. Conservatism is dead, and so is the Uniited States as we knew it once upon a time. How can you turn on your ideology, Mr. Bush?

"George W. Bush single handidly defeated conservatism in the United States"

Nice article:
http://abuhatem.hadithuna.com/buyers-remorse/

[wtobias]

the change is not going to happen because the dems are 75 percent at falt so why would anyone think it going to change. the big money will pull out of the markets in jan the market will crash after xmas before obama takes office they are not going to let him tax there investments its like a drowning swimmer and he will take his last breath of air in jan 1st and the country we will have our own great depression to deal it took 38 years to recover so get ready