Financial Dispatch: A second stimulus? Economists say no
[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/images/08/07/art.gfx.wallst.jpg]
Andrew Torgan
CNN Financial News Producer
An increasing number of economists agree with the government's response to the recession, saying they believe the economy is on the road to recovery, according to a new survey.
The majority of respondents, or 76%, do not believe a second stimulus package is necessary, said the report from the National Association for Business Economics.
Respondents also expressed "an impressive degree of confidence” in the Fed’s monetary policy. Seventy percent say monetary policy is about right, up from 63% in March and 56% a year ago.
But economists are more or less split on what the fed should do next.
Forty-nine percent say policymakers should leave interest rates alone over the next 6 months, and 45% say they should start raising them.
Stocks stumble
Stocks on Wall Street fell sharply out of the gate as investors looked past upbeat corporate and economic news to focus on a sharp selloff in China, which raised concerns that the U.S. market may have risen too far too fast.
In Shanghai, stocks fell 6% overnight to a 3-month low on worries about bank lending drying up. Major indexes in Europe were also lower.
And with U.S. stocks more than 50% above their March lows, predictions of a Wall Street pullback have been getting louder.
The week ahead is the last full one before Labor Day and should bring relatively smooth sailing. With no market-moving earnings reports expected, investors will look for improvement in factory orders, auto sales and regional and national manufacturing reports.
Friday brings the government’s big employment report for August that’s expected to show unemployment continues to churn higher.
Disney buying Marvel in $4 billion deal
The “House of Mouse” is putting on an addition.
Walt Disney is buying comic book and action hero company Marvel Entertainment for about $4 billion – a deal that brings Mickey, Cinderella, Wolverine and The Incredible Hulk together under one roof.
Marvel, which has launched a large number of action-hero movies over the past decade, including the "Spider-Man," "X-Men," and "The Fantastic Four" franchises, would join one of the largest international media companies in the world.
The deal gives Disney access to content that appeals more to boys and young men - a market it’s been looking to develop. Between “Hanna Montana” and Jonas Brothers, Disney essentially dominates the market for teen and “tween” girls.
Cut my pay ... please!
Finding work in this recession takes determination, perseverance and, most of all, sacrifice.
With unemployment as high as 9.4% and job prospects scarce, job seekers are willing to accept as little as half of what they were making before, if it means finding a job.
In a recent survey, 65% of out-of-work respondents reported willingness to accept wages up to 30% lower than their previous compensation. And, 3% and 4%, respectively, said they would accept up to 40% and 50% of prior wages, according to the 2009 Annual Career Fair Survey released by Next Steps Career Solutions.
Follow the money… on Twitter: @AndrewTorganCNN
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Companies have the employees or prospective employees right where they want them – work them to death and pay them paltry wages with hardly any benefits – pensions have been dropped; matching on 401Ks also dropped; a larger share of medical insurance premiums higher for the employee for less coverage....it just goes on and on. Sending American jobs overseas has shortchanged Americans. I think that companies that did this should have to pay much more in taxes on their ever growing profits.
What Heroic things has Obama and Bernanke? to be a Hero, you must do something right,I have yet to see anything done right YET!
Jane (above) is correct. We are seeing that in CA as well. Assistants who were making $20-25+/hour – those jobs are now being offered at $12-15/hour ... with a minimum 3 years experience. The companies know there is a glut of workers and that we are willing to work for pretty much whatever to pay our bills. They will still have their profits; the unemployment picture will brighten (we take these low-paying jobs and/or part-time jobs and are off the unemployment rolls) but foreclosures and credit card defaults and bankruptcies will continue to rise - salaries are down but the bills remain constant.
Wall Street got their bailout ... where is the bail out for the people who are desparate to work and have to take these lower wages just to survive?
Please,nobody can call the "Top or the Bottom",of what is a "bull market,in a bear trap,or vice-a-versa. These economist confuse me? Their clarion calls are hersay at most from their ill-gotten history books of past financial failures! September as usual,is the month mutual funds start to reshuffle their portfolio's, which always cause market hic-cups in the "Fall",but not a correction,period! Remember this; it wasn't China,Europe,Asia,Japan,or whomever that got the entire world in this mess,it was the United States,and we haven't even gotten to square one regarding getting our own economy on it's,"own two feet"! We as a country are about to enter a period of unprecedented stagflation,that will make having a job flipping hamburgs at McDonald's a godsend ,...?
Bernie Madoff only used 50 billion to keep people happy "By robbing Peter to pay Paul" for what? A good 20, 30 years?! And yet here we have Borak Obama in the Oval Office whom although with the same evil intentions after asking for 750 billions has yet to let shallow America crack a tiny smile.
The heroics of Obama and Bernanke saved this nation from a horrible economic downturn.
If the current administration continues it's pattern, we should have our second stimulus shortly after they say one isn't required.
Just add it to no lobbyists; no looking back; complete transparency; and a new way of doing things in Washington.
You can't make this stuff up.
I don't think people are so much as willing to take reduced pay as companies are refusing to pay what people are worth. As an example, the market where I live has been flooded with administrative staff who got laid off over the past 12-18 months – and salaries for the few jobs available have dropped from normal rates ($15-25 an hour DOE) to $8-10 an hour in some cases. People are left with NO CHOICE but to take those paltry salaries and then probably get a 2nd or 3rd job to cover monthly expenses. I'm sorry, but I think a professional with 20+ years experience in their field is worth more than slightly above minimum wage.
I live in Jefferson Davis Parish, in Southwest Louisiana. We have a serious problem here with a serial killer. The murders of women now number 8 women killed in similar ways, and left on a deserted roads. There seems to be no coverage of this on a national level. I and several of my fellow citizens believe that it would be very helpful if it was covered by CNN. CNN is my news station. Please, please help us in any way that you can. Elia Richard
The Government is definately smoking something! Maybe they're drinking their own kool-aid. The 2nd stimulis of 787 billion dollars doesn't even have 10% spent yet. Only around 50 billion and they think another stimulis is needed. Who did they forget to pay off? They have no idea how the money is going to be paid back!
You think this is fear mongering? All of you who think this, must be drinking and smoking the same things as the Government! You think President Bush spent money? President Obama is making him look like a rookie!
It's funny how you say President Obama doesn't really make these bills himself, but when President Bush was in office they were all his bills. You talk about hippocrites. You need to watch what the Government tries to pass over on us, they only have their interests in mind!
I don't think we can afford another one. He's already doubled the deficit in his first 3 months, does he really need to tripple it in the first 6?