A second round of government spending could be on the horizon, with a recent speech from Fed chairman Ben Bernanke topping the list of those recommending the consideration and careful planning of a new Congressional stimulus package.

“With the economy likely to be weak for several quarters, and with some risk of a protracted slowdown, consideration of a fiscal package by Congress at this juncture seems appropriate,” Mr. Bernanke told the House Budget Committee.

Bernanke reiterated his concern over the weak economy, noting housing, saying, "As has been the case for some time, the housing market remains depressed, with sales and construction of new homes continuing to decline.  Indeed, single-family housing starts fell 12 percent in September, and permit issuance also dropped sharply.  With demand for new homes remaining at a low level and the backlog of unsold homes still sizable, residential construction is likely to continue to contract into next year."

Published: October 21, 2008

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