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October 31st, 2008

A Breakdown of Stimulus #2

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Despite the unsuccessful result of the first stimulus package doled out earlier this year, an ongoing recession coupled with the need for consumer assistance — as the government has done with financial institutions — has lawmakers sketching out the structure for a possible second stimulus package in less than a year.

How will the second stimulus differ from the first?

Although no set structure has been established for the second package, the second round is expected to differ from the first. The first stimulus totaled at $168 billion; estimates for the second stimulus have reached up to $300 billion.

New stipulations include an extension in unemployment benefits, increased spending on food stamps, financial aid to individual states and municipalities, as well as strong lawmakers support for government spending on building projects for roads, buildings, and bridges.

Officials say lawmakers could vote on the second stimulus in a “lame duck” session as soon as next week. In an era where our government has written consecutive blank checks, lawmakers will try to balance the need for consumer support with the consequence of future financial debt.

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2 Responses to “A Breakdown of Stimulus #2”

  1. Connie Hudlow Says: November 2nd, 2008 at 4:41 am

    They are not saying ‘WHO” is included in the Stimulus Pkg. – Don’t forget that the retirees are hit with all these increases too and are trying to live on a Fixed Income ..
    Health Care and Prescriptions are not cheap not to mention that cost of Food and Fuel, Electric and etc.

  2. Tim Manni Says: November 3rd, 2008 at 10:41 am

    Connie,

    Thanks for your comments and thoughtful insight. Until the government releases more information on the second stimulus, we won’t know much more than the little they are letting on — the talks are still primitive.

    Although assuming is never a good idea, we would like to assume the package will prop up consumers for longer than just the short term. Unfortunately these stimulus’ don’t seem to provide much long term care. As you have read, their strategy seems to differ from the first stimulus, offering more constructive improvements like extending unemployment bene. and municipal projects. Giving each taxpayer $600 didn’t seem to do much last time.

    In terms of “WHO,” the article gave the impression the focus would be even more on taxpayers.

    Thanks again,

    Tim (HSH)

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About the HSH Blog

HSH.com's daily blog focuses on the latest developments in the mortgage and housing markets. Our mission is to relate how changes in mortgage rates and housing policy, as well as the latest financial news, impacts consumers, homebuyers and industry insiders alike. Our 30-plus years of experience in the mortgage industry gives us an edge as we break down the latest changes in an ever-changing market.

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Tim Manni

Tim Manni is the Managing Editor of HSH.com and the author of their daily blog, which concentrates on the latest developments in the mortgage and housing markets.

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