Wall Street Disapointed By Bush’s Economic Stimulus Plan
President Bush has unveiled a $140 Billion economic stimulus package in attempt to forestall an economic downturn. However Wall Street reacted negatively to the news as stocks fell sharply.
Many investment analysts criticized the move as being to small to have any appreciable affect in the short run. Some also believe that when it finally does take effect the economy may already be in a recession.
The economy has been plagued by the triple whammy of a slumping housing market, tight credit market, and soaring energy and commodity prices. A weak holiday season has also renewed fears that consumer spending is falling.
Many investors are calling for the Federal Reserve to do more and believe that it is monetary policy rather than fiscal policy that will determine the fate of the economy. It is believed that rates must fall by at least another full percent in the upcoming months.
This may not keep the country out of recession but it may shorten the recovery time immeasurably. While the economy has been quite resilient thus far amidst the gloomy news in recent months, many feel that it won’t last much longer.
