Bloomberg Reports Bush Is ‘Open to Idea’ of Second Economic Stimulus, Perino Says:

The Bush administration is “open to the idea” of another economic stimulus package, though approval would depend on details drafted by Congress, spokeswoman Dana Perino said.

You’ve got to be kidding me. The solution is not to mail checks to every American in the hopes of maintaining consumer spending. All credible analysis pointed to the fact that the first try did not work, and that the costs were greater than the benefits. This is a ridiculous political stunt. Everyone likes receiving a check in the mail, even if they rationally know that it is going to have to be paid back with interest.

In other news, There’s more pain on the State budget front. Mish reports 22 States Face Tax Shortfalls, Frugality To Hit State Budgets:

Donald J. Boyd, a senior fellow at the Rockefeller Institute of Government in New York, who tracks state budgets: “What states have done so far — still generally mild — pales in comparison to what they will do.”

More cuts are on the way. This is going to hurt. It would have been far better if states had been more fiscally responsible during the good times. I find it somewhat humorous that layoffs are so much more favored by the states than pay cuts. If it’s all about job creation, isn’t a pay cut preferred?

Eventually, the government is going to have to stop recklessly spending. Either it will happen because of taxpayer push-back, or it will happen because investors dump US debt. It’s not going to happen because of intelligence in government, that’s one thing I’m sure of.