Posted on 10/20/2008 8:56:58 AM PDT by NormsRevenge
NEW YORK (Reuters) – Interbank lending emerged from deep freeze and Fed chairman Ben Bernanke gave his blessing to a second U.S. government stimulus package on Monday, providing hope the world's financial crisis may be easing.
The three-month Libor rate fell more than one-third of a percentage point, its biggest one-day drop in nine months in one sign that banks may have the confidence to lend to each other again, crucial to reactivating the world economy.
The chairman of the U.S. Federal Reserve told Congress on Monday that another wave of government spending may be needed as the economy limps through what could be an extended period of subpar growth.
"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," Fed chief Ben Bernanke said in his first endorsement of a second U.S. stimulus package.
U.S. stocks gained further on the prospect of another government boost to taxpayers similar to one this summer when the Treasury sent out $100 billion of checks to jump-start the economy. The Dow and the S&P rose more than 2 percent each.
European stocks meanwhile fared well as banks there prepared to make use of state rescue packages.
ING grabbed a 10 billion euro ($13.5 billion) Dutch cash injection and Sweden joined countries offering lifelines to their banks.
"Bernanke appears to have restored some confidence in markets by advocating another fiscal stimulus, although markets may also have been influenced by the stronger-than-expected U.S. leading economic indicator," said Stephen Malyon, chief currency strategist at Scotia Capital in Toronto.
(Excerpt) Read more at news.yahoo.com ...
Wax yur boards.
Looks like surf is almost up again.
It’d be nice to get $1,000 a pop this time.
WE are a generous people after all. ;-)
Why not just and out $60,000 to everyone instead of $600. I mean, that would really stimulate the economy.
In politics you get to repeat the same mistake over and over again.
Gee, I wonder if they’ll try and pass it in time to “rescue” the Christmas season?
Why not just go whole hog and pay off everyone's mortgage for them? And for those without a mortgage, a nice check in the amount of the national median price for a house? Since we are so concerned with stimulating the economy, don't screw around with half measures - do it up right! (/sarcasm)
I can see the animated cartoon movie now..."The Republicans that Stole Christmas and the Democrats that Saved It." starring the Big O, Chrissy D and Nancy P.
Save the paper, just direct deposit it to my account, $60,000 would be a good start -
Doesn’t matter, me and mine are going to scale back Christmas (stimulus or not). With Senator Spread the Wealth looming, tax season could be painful for my little enterprise. I wonder what the effect would be if a bunch of business owners made a commercial saying that Obamas plan would force them to raise prices and reduce employment? I know I may have to...
Gee, I wonder if they’ll try and pass it in time to “rescue” the Christmas season?
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I think it’s too late .. unless they did electronic transfer. Love the electronic printing presses.
besides, They can’t get anything done that quick in Congre$$, can they? except play CYA as they did recently.
In politics you get to repeat the same mistake over and over again.
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The 2 party system at its best.
The Incumbency Hustle.
Maybe I’ll be included in this next wave as I was considered too “rich” for the first!
Having been a contractor in the past, I have an appreciation for the tax bite that small business owners face.
One of the real eye openers for me was workers compensation insurance. It was quite the surprise to find out that workers comp is based on employee classification and that classification is used to determine the percentage of gross payroll paid into workers comp.
Me too Me too
so I think I deserve double this time (since I will just have to pay it back at tax time anyway)
BUt then I don’t think senator government wants to give anything to the evil RICH
I’m an IT manager and my wife is a pharmacist. Both of us come from poor blue-collar families and we paid our own way through college via the military (me) and student loans (her). Now we are supposed to feel bad for making a decent living and Obama wants to “spread our wealth around?”
I’m sorry, I thought getting an education and working hard was what Americans were supposed to do in this land of opportunity. We now joke about quitting our jobs and letting the government support us as that is the new model of the American dream Obama is promoting.
I was born in 1976 however I believe America as a nation peaked in the 50’s. It’s all downhill from here...
Mike
Remember that “tax credit” Obama gives for new jobs? It will be tied to those expenses, which are going to go up. So really, if you create a new job you can pay what you used to pay for them, otherwise you can pay more per employee.
The real slap will be when the Bush tax cuts expire, I plan to be out of business before then or else convert to a corporation. LLC’s, S-Corps, and Sole-Proprieterships will get slammed when those cuts roll back.
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