Remember when you received tax rebates of $600-$1200
this year? Now be prepared for a second round. Lawmakers are in
talks next week to release details of new stimulus packages to help
economy.
The previous package of $168 billion that was signed
into law early this February was built around tax breaks and tax
refunds.
This time around lawmakers need to make sure what will
benefit economy will have a huge impact. It is not about how much we
can spend and where we can spend it.
With current economic crises and consumer confidence
declining the stimulus package may be bigger as price tag may be
reaching to $300 billion.
Consumers have cut spending for the first time in two
years bracing for hard times. A Commerce Department report on Friday
showed that consumer spending shrank by 0.3 percent in September and
was flat in both August and July.
Economists believe that we are in global recession and
some hard times are ahead of us. With holiday season approaching,
lawmakers want to prepare stimulus package as soon as possible, even
before presidential elections.
The Labor Department on Friday said the wages and
benefits of U.S. workers rose by a moderate 0.7 percent.
Housing market is currently the biggest problem to
economy as more an more homeowners own more than their house is
worth.
Government is working on a plan to help 3 million
homeowners to avoid foreclosure. The plan call for 5 year fixed
mortgages. It will allow government to directly deal between
homeowner and their bank. This program will be offered by all banks,
saving and loans, brokers and bankers.
The grim news is just before nation will pick a new
president. Either Democrat Barack Obama or Republican John McCain
will inherit a deeply troubled economy.
Equal Housing Opportunity (c) Copyright 2008 RateTake.com