Day by Day

Tuesday, March 10, 2009

say by-bye to the change we have left

Pelosi leaves door open to second stimulus

After meeting behind closed doors with prominent economists, Pelosi said that at the moment she would adopt a wait-and-see approach to a further economic stimulus, but noted that job losses would likely increase over the coming months.

"It will take a little time to get going, some of it's already in the works, but we must give it time to work," Pelosi told reporters flanked by economists and fellow Democrats who met to discuss the struggling economy.

"You have to keep the door open to see how this goes," she said.



Pelosi: Congress Needs to 'Keep the Door Open' to Second Stimulus Package


"The word of the day is confidence. Confidence in our markets, confidence in lending, confidence in our financial institutions," Pelosi said before suggesting the need for a second rescue package during a press conference Tuesday following a meeting with top economists.

Mark Zandi, chief economist and founder of Moody's Economy, took a more definitive stance than Pelosi, telling reporters a second stimulus bill is necessary.

"We are going to need more taxpayer money ... I think another stimulus package is a reasonable assumption because of the way things are going," Zandi said.

The Obama administration has not ruled out a second stimulus package -- should the current bill prove insufficient -- but it has not indicated a second bill is currently in the making either.

White House Press Secretary Robert Gibbs told reporters on Feb. 17 that Obama "is going to do what's necessary to grow this economy." While "there are no particular plans at this point for a second stimulus package," he added, "I wouldn't foreclose it."



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