Fiscal stimulus probably on the way

Although there has been some degree of chatter about the possibility of fiscal economic stimulus for some time now, it finally looks to be likely, varying only in the amount and form. An article in The New York Times by Steven Weisman and David Herszenhorn entitled "Bush and Congress Seen Pushing for Stimulus Plan" summarizes the situation. It sounds as if the plan will be announced within the next couple of weeks. $100 billion is a commonly discussed size. The form might be some combination of individual tax rebates, business investment credits, extended unemployment benefits, and a couple of other goodies designed to appeal in an election year.

Mind you, I personally do not think any of this fiscal relief is needed since I truly believe that the economy is stronger than the pundits give it credit for being, but it does appear to be headed our way in any case.

The real point is that the presumed "recession" is getting increasingly unlikely. I predict that six months from now we will be in the midst of Fed rate hikes and collectively scratching our heads and wondering why we were so worried about economic weakness when the core economy has been so strong.

-- Jack Krupansky