Terry Connelly is dean of the Ageno School of Business at Golden Gate University and is frequently quoted on business, financial, and economic issues by Bay Area local, as well as national, news media.
First it was Lawrence Summers with his call on the recession and the need for serious stimulus from both the Fed and the Federal government, then Bob Rubin chimed in for $100 billion. Now every remaining Presidential candidate from here to Huckabee is coming along with his or her own “stimulus packag” (not to mention the hints from the incumbent in chief; who will probably be constrained to hold his fire until the State of the Union address January 29 (same day as the fed meeting by chance).
From the Republicans it cut the budget and cut the taxes; from the Democrats, help with the mortgage payments and low and middle income tax rebates for the consumer. (Hillary Clinton’s package is $70 billion — where did she lose $30 billion post-Rubin?
And today secretary paulson weighs to the effect that “time is off the essence” — is this a gentle hint to the Fed to provide an inter-meeting rate cut of at least 50 basis points, say, early next week. Indeed the logic of Chairman Bernanke’s comments yesterday beg the question — why wait? Let’s be on the lookout over the weekend; a surprise cut would catch out a lot of short positions on the Street.
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